Off-the-Plan Agreements - sale and purchase - Online CPD

Package includes:

Online CPD Module  l  Booklet  l  PowerPoint Presentation

Package Fee (incl GST)

• $205 - NZLS members and Associate members
• $255 - Non-members

Note: Access to the online files is via your "My CPD" page. If you would like to purchase multiple packages, please contact us here.

Online CPD Module

Whether you act for a developer or a buyer, agreements and sales of properties off-the-plans can introduce a myriad of issues. Understanding the logic behind the clauses and requirements, the risks and protections that exist for buyers, and
the way a developer can manage risk through the form of their agreement will benefit your client.

This seminar will help you understand the issues that exist in dealing with off-the-plans transactions whether your clients are buying or selling.

• What can be negotiated – understanding each party’s requirements
• Legislative changes – Unit Titles Act, Anti-Money Laundering and Countering Financing of Terrorism Act, Securities Act
• Development funding requirements and their impact on the form of agreement
• Consumer protection for purchasers
• Dealing with deposits.

Learning objectives

After completing this module you will have a better understanding of:

• The different perspectives of both the seller and the buyer to the agreement.
• Key issues that warrant addressing in the agreement.

Please contact us if you use a dial up internet connection.

Booklet

Introduction

The purpose of this presentation and paper is to examine the issues that arise when reviewing agreements for the sale and purchase of properties off the plans (ie when a purchaser agrees to buy a property that does not yet have a title). ¹ Sometimes agreements for sales off the plans are entered into years before the settlement date. With that significant delay comes risks for both parties – often associated with changes in the market and with cost escalation, but also particular to individual parties.

Typically these agreements are complex and attempt to weigh three different perspectives:

• The expectations of the purchaser to achieve certainty as to what they are purchasing;
• The requirements of the vendor to have flexibility in what they are creating; and
• The conditions precedent to the vendor's bank providing the development funding.

In the course of this presentation we will examine the expectations of each of these parties. We will also consider some underlying regulatory requirements. My hope is that by the end of the presentation you will be fully equipped to understand a typical pre-sale agreement, to recognise the reasons for many of the provisions and the extent to which they might be varied, and for that to be the case whether you are acting for the buyer or the seller. My hope is that the paper will better enable you to deliver valuable information to your clients and to be able to make your own judgements as to whether points are worthwhile pursuing or not.

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PowerPoint Presentation