Purchasing Off-The-Plan Property - The Pre-Settlement Process
by Lorena D'Amico_Property Portfolio Manager
When purchasing property 'off-the-plan', there is a considerable amount of time between when the client signs the contract to when the property settles, which has many significant benefits for the purchaser (for more information on these benefits, please feel free to speak with John Hopkins Property Adviser).
Pre-Settlement Process
Before the property settles, the purchaser is taken through what we refer to as a Pre-Settlement Process. Included in this process is a Pre-Settlement Inspection, which is sometimes referred to as a "Defect Inspection," where the purchaser has an opportunity to walk through the property once it has been built and ensure everything is to his or her satisfaction before settlement occurs. The benefit of purchasing property through the John Hopkins Group is that we are involved through this whole process to ensure our clients are kept well informed every step of the way. This includes providing all our client purchasers with regular progress reports, including photographs and current updates from the vendor or site managers.
Pre-Settlement Inspection
Three months prior to the property settling, the Pre-Settlement Process will begin. At this time, we arrange a meeting with all our client purchasers. This serves as an opportune time to ask any questions you may have, including finance, mortgage, defect or settlement queries. During your first appointment, you will have the opportunity to speak with your Property Investment Adviser, the Property Portfolio Manager, and depending on your circumstances, your Financial Adviser or Mortgage Broker as well. The John Hopkins Group will walk you through everything that is required coming up to settlement.
The Pre-Settlement Inspection is generally carried out two to three weeks prior to the property settlement date. At this stage, the property will have been completed and is ready for all purchasers to inspect.
At the Pre-Settlement Inspection, a member from the John Hopkins Property Management department will attend the property, along with a representative of the developer, to assist you in determining any defects or issues which may need attention before settlement. As we regularly carry out these inspections, we are experienced as to what to look out for. Due to the calibre of property John Hopkins Group recommends to our clients, and the developers our company deals with, we find if there are any defects, they are usually minor imperfections which can be rectified once highlighted. After the Pre-settlement Inspection is completed, a report is drawn noting any defects or issue the purchaser has. It’s important to note every item that is listed on this report will be required to be rectified, as per the purchaser contract.
Some defects may take a little longer to rectify than others, therefore in some instances defects are completed after settlement. If this is the case, the Property Portfolio Manager will always follow through with any outstanding matters to ensure everything listed on the Pre-Settlement Inspection report is completed and signed off on.
Choosing John Hopkins Property Management to lease and manage your property allows the purchaser to have the benefit of easy access to the property for repairs, as well as a much smother transaction as a result of our long standing relationships with those involved in each development. We also have the benefit of early access to the property prior to settlement, which gives us the opportunity of marketing the property for lease as early as possible, so as to minimise the vacancy period.
In circumstances where a client purchaser lives interstate, or isn’t in a position to attend the Pre-Settlement Inspection personally, we then carry out the inspections on our owner’s behalf. Following the Pre-Settlement Inspection we then provide our clients with a thorough report and carry out a diligent follow-up procedure to ensure your property meets the high standards it should.
Our aim is to provide a hassle free well informed process from the first appointment with the John Hopkins Group, to the settlement date, and for the years following.
If you would like more information on off-the-plan property and the processes involved, or would like to speak to a Property Portfolio Manager, please call our Client Liaison Officer on 1800 726 082 who can arrange an appointment for you.
To arrange an appointment with a John Hopkins Property Portfolio Manager, please contact our Client Liaison Officer on 1300 726 082 or click here.