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In my case, the deposit I paid is held by the department of fair trade. It only paid to the developer during settlement. And I can get it back if the building did not finish by the date stated in the contract.
Just checked the web site for fair trading. The security of your deposit is depends on the actual contract. You need to consult your lawyer when buying.
"The contract
When buying off the plan, the date for completing the contract is usually not until the building is finished. Commonly, the buyer pays a deposit to secure the property, with the balance payable upon settlement.
The conditions of the contract should be closely checked. Legal advice should be obtained on the benefits or restrictions provided by the terms of the contract. For example, consideration should be given to whether there are any penalties for withdrawing from the contract. Other questions you might need to ask could include:
Can I make changes to the finishes in the kitchen and bathroom?
Can I select appliances such as stoves and dishwashers and items such as floor and wall tiles?
Can I visit the site during construction?
If the building is finished earlier than expected, has finance been suitably arranged?
What are my rights if construction is delayed?
Is my deposit secure if the building doesn't proceed?
Can I on-sell during the construction period?
Always read your contract and obtain advice from a lawyer or licensed conveyancer."
http://www.fairtrading.nsw.gov.a ... g_off_the_plan.html |
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