Newly constructed townhouse off the plan?

Discussion in 'Legal Issues' started by VinnieMEL, 11th Jan, 2022.

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  1. VinnieMEL

    VinnieMEL Member

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    27th Apr, 2019
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    Melbourne
    Hi all,

    Sorry if this has been covered but couldn't find it in the search.
    I am looking at buying a new townhouse (build complete with occupancy permit, 1 of 2, side by side) in SE Melb for a PPOR and had a couple of questions.

    I have been looking at getting a lawyer to review the sec32, but having asked a number they've all come back saying they won't review off the plan contracts. Is the property really off the plan when the occupancy permit has been issued? Are there specific lawyers that deal with these types of contracts, or do I even need a lawyer, is a conveyancer is sufficient?
    And are there any specific issues that I should look out for in a newly built property contract? Is there any point including building & pest inspection on these?

    Any advice would be appreciated.

    Thanks in advance
     
  2. The Y-man

    The Y-man Moderator Staff Member

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    That's odd - I thought lawyers would be happy to look over the s32.

    It's still technically "OTP" but you probably won't get any stamp duty benefits (check with your accountant).

    Pest inspection will be pointless, but a building inspection might be good to find out what you need to get fixed under warranty etc.

    The Y-man
     
  3. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Its not a true OTP if construction is completed. Their advice should include a recommendation to have the building inspected for non-compliance, defects and other issues which is slightly different to the usual P&B which looks at defects differently. I had one of these contracvts and they suggested a search of council approved plans and had me check they were same as the build. Shop around for a inspector that may be better able to assist that issue.

    I wouldnt use the expression of "OTP" and indicate its a new build just completed and for sale by the builder. They should be wary of a unlicensed builder or owner builder and may seek extra info from the vendor on their building warranty insurance

    Best practice is a solictor that has a conveyancing speciality. Convenyancers can do the job but if any issues come up you wll then need a solicitor
     
    craigc and The Y-man like this.
  4. VinnieMEL

    VinnieMEL Member

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    27th Apr, 2019
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    Location:
    Melbourne
    Thanks for the responses Paul, Y-man, that's most helpful.