Buying off-plan means committing money before the finished property exists.
The discount or payment plan can be attractive, but the buyer is taking construction and completion risk that does not exist in the same way with a completed unit.
Verify the land first
Establish who owns the land on which the development is being built.
Run the appropriate search and check whether there are charges, restrictions or other interests that affect the project.
Check the developer
Look beyond the sales office.
Ask:
- what has the developer completed before?
- can you visit those projects?
- were they delivered substantially as promised?
- who are the directors or contracting entities?
- which company will receive your money?
The brand on the billboard and the legal seller should make sense together.
Review approvals
Ask what approvals have been obtained for the actual project.
Do not assume that excavation or a boundary wall proves the full development has approval.
Read the specifications
The agreement should make clear what the unit will contain.
Important items include:
- floor area
- finishes
- windows and doors
- sanitary fittings
- kitchen specification
- parking
- common facilities
A render is not a construction specification.
Understand the payment schedule
Tie payments to clear dates or construction milestones where appropriate.
Know what happens if:
- construction is delayed
- the developer changes the design
- the buyer pays late
- the project does not complete
Check the completion date wording
“Expected completion” and a contractual completion obligation are not necessarily the same thing.
Read the provisions for extensions and delay.
Ask what title you will receive
For apartments, understand the intended sectional-title structure and when the unit can be registered.
For houses in a larger development, understand the land interest attached to the home.
Budget beyond the instalments
Include legal fees, stamp duty, financing charges where applicable, service-charge setup and furnishing.
See hidden costs of buying property in Kenya.
Off-plan can work, but the purchase should be based on documents and counterparty quality, not only a render and an early-bird price.
