Buying Into A New Development
  ... Some Must Remember Tips!


The Contract

Scrutinise your contract and keep an eye open for the following points. These points are often glossed over and it is best that you familiarise yourself with the contractual finer detail so that you are aware of exactly what it is you are buying:

  • Are you permitted to sell the unit before taking ownership? Or is the developer reserving the right to all potential sales for himself until the development is sold out.

  • Are you restricted to use the bond originator nominated by the developer?

  • Do you start paying for the development as it progresses (plot and plan) or is the developer funding the entire project, whereby you only pay once the full development is completed?

  • Are there escalation clauses built into the price? In other words, can the developer increase the price you pay over time to offset inflation related cost increases?

Other Considerations
  • How successful had the developer's developments been in the past?

  • Does the developer have a good reputation?

  • How long has the developer been around?

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