The developer contract — five clauses that decide things later
The price gets negotiated; the contract rarely does. Yet it sets the rules for exactly those situations in which things turn awkward.
A purchase contract for an off-plan project is not a form, even though it looks like one. It is written by the developer and governs the developer’s position first. That is legitimate — you should simply know it before you sign.
What I read first
- Completion date and consequences of delay. Is there a binding date or a window? What happens if it is exceeded — is there any consequence for the developer at all, and from when?
- Area variance. Almost every contract permits a tolerance between planned and built area. What matters is at what percentage an adjustment is calculated, in which direction, and whether a certain deviation lets you withdraw.
- Reserved rights to make changes. How far may the developer unilaterally alter the layout, specification or common areas? “Equivalent substitute” is a phrase that leaves a great deal of room.
- Resale threshold. From what proportion paid is a sale before completion permitted, and what fee is owed to the developer?
- Your own late payment. What period, what consequence, and from what point do amounts already paid risk being lost?
The pattern behind them
All five have the same structure: they govern departure from the normal case. If everything runs smoothly they never come into play. That is precisely why they get skimmed — and precisely why they decide the case in which things do not run smoothly.
What follows from this
Have the contract reviewed before you pay, not before you take handover. After the first instalment your negotiating position is a different one.
And ask for the version actually to be signed, not a specimen. The two differ more often than they need to.
This article is general orientation and does not constitute legal advice. Contract terms differ considerably by developer and project; review belongs in the hands of a lawyer — I am happy to make an introduction.
Keep checking
If you want to apply this to a specific plan, I am happy to assess it with you, or you can work through the twelve points before a purchase yourself.
