Buying Off Plan

How to buy property off plan

Stage payments vary considerably and may consist of the following: 10 per cent deposit and the remainder on completion, or 10 per cent on deposit and three stage payments during construction. Some of the final payment (e.g. 5 per cent) may be withheld for six months for maintenance and as ‘insurance' against defects. If a property is already partly built, the builder may ask for a higher initial payment, depending on its stage of completion.

The contract contains: the timetable for the property's completion; stage payment dates; the completion date and (possibly) penalties for non-completion; guarantees for building work; details of the builder's insurance policy (against non-completion); and a copy of the plans and drawings. The floor plan and technical specifications are signed by both parties to ensure that sizes and standard of construction are adhered to.

The contract should also contain a clause allowing you to withhold at least 5 per cent of the purchase price for six months in case the builder fails to correct any faults in the property. The completion of each stage should be certified in writing by your own architect or lawyer before payments are made. It's important to ensure that payments are made on time, or you could forfeit all previous payments and the property could be sold to another buyer.

SURVIVAL TIP
It's important that the builder or developer has an insurance policy (or ‘termination' guarantee) to protect your investment in the event that he goes bust before completing the property and its infrastructure. If he doesn't, you shouldn't buy from him!

This article is an extract from Buying a Home in Greece
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Greece Property Guide Subjects:

Introduction	Advantages & Disadvantages	Buying for Investment in Greece	Greece Estate Agents
Cost of Property	Property Prices in Greece	Purchasing Fees	Inspections & Surveys
Buying Off Plan in Greece	Conveyance	Purchase Procedure	Completion
Letting Intro	Letting Rules & Regulations:	Greece Contracts & Taxation	Letting Rates in Greece
Using an Agent for Letting	Doing Your Own Letting	Mortgages & Loans in Greece

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