offplan

Off-plan describes buying a property before construction is completed, typically from a developer, using plans or show homes rather than a finished dwelling. It is common in new-build projects and investment schemes. Buyers sign a sales agreement that sets a future completion date.

How it works: The contract is usually conditional on planning and the builder’s ability to proceed. A non-refundable deposit is often paid at exchange, followed by staged payments tied to construction milestones. The price may be fixed or adjusted under predefined terms. Ownership transfers when completion occurs.

Advantages: Potentially lower entry price, some choice of finishes within the developer’s options, and access to new-build warranties. The property may benefit from modern standards and expected capital appreciation if markets rise.

Risks: Delays or changes to plans, project failure or developer insolvency, and possible falls in market value at completion. Finance can be affected by delays or changes, and deposits are often non-refundable if the project stalls.

Protections and due diligence: Review the developer’s track record, project timetable, and planning approvals. Confirm whether a builder’s warranty will apply. Seek legal advice to understand deposit terms, exit rights, and remedies for delay or non-completion. Depending on jurisdiction, there may be deposit protection schemes or cooling-off rights; terms vary.