Buying off the plan from another buyer

[twinkle_star]

What is usually involved when purchasing an apartment (that is currently being built) from a seller who initially purchased from the developer direct? Since the seller has nothing physical to sell is it a matter of changing the contract so that it is between the developer and new purchaser?

 

[Colin Rice]

Purchaser would have paid a deposit to the developer, typically 5-10% and would want this back? If the contract is broken the developer could retain this deposit so the purchaser needs to be careful this is not the case. I would consult a solicitor/conveyancer before proceeding further to avoid loosing the initial deposit.

 

[Tony3008]

When I have bought OTP the contract has been made out to me 'or nominee', the explanation being that I can nominate someone else before settlement. I would presume this allows lets you assign the contract to someone else and you would presumably hope that they would pay you what you'd paid as deposit, though if the property was to be valued at well under contract price you might be glad to be relieved of your contractual obligations. Also (in Vic anyway), because it's a contract assignment rather than you selling them real estate, there's no Stamp Duty to pay? IANAL

 

[Ausprop]

just as the developer had nothing physical to sell, neither does the 1st buyer. A contract needs to be in place for the on sale on whatever terms and conditions you agree.

 

[Terry_w]

The seller will settle with the end purchaser and the original vendor at the same time.

And/or nominee may result in double stamp duty = seek legal advice.

 

[twinkle_star]

Thanks all for your responses. It makes more sense now.