What safeguards do buyers have when buying a house off the plans? Things like completion date would seem to be a possibility for problems. Also what rights does the buyer have during the build, regarding inspecting progress at various stages?

rpvr - 2021-01-09 21:43:00

rpvr wrote:

What safeguards do buyers have when buying a house off the plans? Things like completion date would seem to be a possibility for problems. Also what rights does the buyer have during the build, regarding inspecting progress at various stages?

its all in the contract you are expected to sign, ask for a copy read it thoroughly, then discuss with your conveyancer. House off plan developers typically have take it or leave it contracts.

Edited by gabbysnana at 10:44 pm, Sat 9 Jan

gabbysnana - 2021-01-09 22:44:00

rpvr wrote:

What safeguards do buyers have when buying a house off the plans? Things like completion date would seem to be a possibility for problems. Also what rights does the buyer have during the build, regarding inspecting progress at various stages?

Best safeguard is to have a lawyer carefully peruse the contract prior to signing.

johnston - 2021-01-10 07:12:00

rpvr wrote:

What safeguards do buyers have when buying a house off the plans? Things like completion date would seem to be a possibility for problems. Also what rights does the buyer have during the build, regarding inspecting progress at various stages?

On 3910 construction contracts there is often penalties after an agreed completion date, but they have to be relevant fees/ costs, not just a figure plucked out of the sky.
If you were renting and had stuff in storage then you could have those as a penalty amount after an agreed completion date, but a lawyer would have to write those into the contract, and be familiar with the construction act.
Personally I wouldn't as then there's pressure on the builder and corners will be cut, finish may not be quite right, and currently there is hold ups with products due to shipping, so that opens another area off arguments.

mrcat1 - 2021-01-10 08:45:00

We're just about to settle on an off the plan property and I definitely second having your lawyer review BEFORE you sign, no matter the pressure.
For example ours had a sunset clause over 18 months away where the deposit was held and we incurred cost. Reasonable if the subdivision was in the early stage, not when all the base works were complete and building was underway.
Check the cancellation clause circumstances too as many have been caught out by developers cancelling as they can get more in the current market. We were notified just before 3pm on 23 December to settle next Monday over a time period when many lawyers and valuers etc are away. We understand that our particular developer is likely to move swiftly to exercise cancellation as they can easily resell for more in the current market. If we have been a bit more onto it we would have put a delay clause in to allow for the legal holiday.

hers.nz - 2021-01-10 10:15:00

Thanks for the comments so far. I am aware it's a legal minefield so would definitely take legal advice before signing anything.

rpvr - 2021-01-10 12:39:00

A major can be lending criteria changes. No bank will offer an unconditional loan valid for more than 12 months and even then there are get outs if you change job or your financial situation worsens.

jeffqv - 2021-01-10 14:47:00