Buying off-plan? The questions worth asking before you reserve

A reservation conversation can move quickly. There is a preferred unit, an attractive view and a deadline to decide. Slowing down to request documents is not a lack of confidence. It is how an investor separates the merits of the apartment from the risks of buying a property that does not yet exist in finished form.

Off-plan purchases vary by scheme. No standard checklist can replace advice from an independent solicitor, mortgage adviser or tax professional where relevant. But the right questions, asked early, can reveal whether there is enough information to proceed at all.

Who is building—and what exactly are you buying?

Confirm the legal name of the developer and the party selling the unit. Marketing brands and contracting entities may be different. Ask what land interest is being sold, whether the site has the necessary planning permission, and which drawings and specification will form part of the contract. A beautifully furnished show home may include optional items; the signed specification determines what should be delivered.

Request a dimensioned unit plan. Check usable room shapes, windows, aspect, balcony details and storage. Find out what the developer may alter without the buyer’s consent. In Trafford Waters, for instance, example brochure plans are indicative; a buyer needs the current plan for the particular apartment, not a generic type. Its developer is Rotheo Developments; 36 Partners is the sales partner, not the builder.

A new-build conveyancing checklist provides a useful starting point for legal questions, but your solicitor must examine the actual title and contract. Ask about rights of way, access, parking arrangements and whether nearby land is likely to be developed later. A view shown in an illustration may not be protected.

What happens to the money?

What is the reservation fee, when is it paid and under what circumstances can it be returned? When will contracts be exchanged, how much deposit is due, where is it held and what protection applies? What amount remains at completion? The answer must come from the current paperwork for the exact unit. Do not assume a payment structure from a different scheme is transferable.

For The Gateway, SoapWorks or Obsidian, ask for the latest availability and developer-issued payment terms. Compare the legal timetable with your own cash flow. If you intend to use a mortgage, ask a qualified adviser how a delayed completion could affect an offer. Finance available on reservation day is not guaranteed to remain available at handover.

What if the timetable moves?

An estimated completion quarter is not a binding guarantee of the day you receive keys. Ask your solicitor about the notice procedure, the definition of completion and any long-stop date. What remedies exist if construction is delayed significantly? What happens if the developer makes permitted design changes or the finished unit differs from the drawings? These are contract questions, not points that a sales brochure can settle.

Find out which structural warranty or equivalent protection is proposed, who provides it, when it begins and what it actually covers. A warranty does not replace a careful inspection or a snagging plan. Ask when you can see the unit, whether an independent inspection is permitted and how defects are reported and remedied.

The costs after the keys

A projected gross yield can look attractive before management, service charge, insurance, repairs, voids, borrowing and taxes are included. Request a service-charge budget, details of what it covers and how future major works are funded. Ask about the lease length, ground rent if applicable and restrictions on letting, pets or alterations. Confirm who will manage the block and whether there are any arrangements that could make changing agents difficult.

Then do independent rental research. Find comparable current listings, note their condition and how long they remain advertised. Do not assume a forecasted rent will be achieved on day one, or that a furniture pack eliminates the time needed to prepare a flat for letting.

What is happening next door?

A development is part of a changing street, not a sealed product. Search the local planning portal for surrounding sites. Is a neighbouring plot vacant? Could construction affect light, access or noise around handover? Would several similar apartments be released into the rental market at once? Ask the developer about public realm improvements and whether they are included in this phase or belong to somebody else’s plan.

Finally, be willing to pause if a key document cannot be supplied. 36 Partners can provide the current sales information for our selected schemes and direct questions to the relevant developer. Your own advisers should independently review the legal and financial implications before you commit.

Keep the answers attached to the unit

A brochure may describe several apartment types, phases and optional extras. Record the exact unit number on every plan and price sheet you receive. Confirm that the promised finish, parking arrangement and any furniture are documented for that unit. Ask whether a service-charge forecast includes all facilities residents will use and what happens if a later phase opens. This avoids accidentally applying an attractive illustration or older payment schedule to the wrong apartment.

Before signing, ask your advisers to explain the worst credible scenario in plain language: a delayed completion, a lower valuation for mortgage purposes, or a change in the amount of cash required. If the response would force a sale or leave you unable to complete, the purchase may not fit your current position, however appealing the address appears.

Source: Ison Harrison, new-build conveyancing checklist. This is an editorial starting point, not legal advice or a complete list of contractual checks. Cover image is illustrative.

This article is for general information only and does not constitute financial advice.