Kolaboro / Guides
Seven contract clauses that protect off-plan buyers
Bring this list to your lawyer. If the developer refuses all of them, that is your answer.
Ask your lawyer to include clauses like these. Wording varies by country; these show the idea, not legal text for your contract.
Milestone payments
"Each instalment becomes payable only when the corresponding construction stage has been completed and verified by the Buyer or the Buyer's appointed inspector."
Delivery date and penalty
"The Developer shall hand over the Property no later than [date]. For each month of delay, the Developer shall pay the Buyer [x]% of the amounts paid."
Refund if not delivered
"If the Property is not handed over within [x] months of the delivery date, the Buyer may terminate this Agreement and receive a full refund of all amounts paid within [30] days."
Payments to the contracting company only
"All payments shall be made exclusively to [company name]'s account no. [x], held in its own name."
No changes without consent
"No change to the design, specifications or price shall apply without the Buyer's written consent."
Retention until handover
"The final [5-10]% of the price is payable only after handover and the correction of defects listed at the final inspection."
Right to inspect
"The Buyer and the Buyer's appointed inspector may visit the site at reasonable notice at every construction stage."