Part 3 - Understanding how to buy off the plan and the terms used

Our final part 3 concludes with some common terms used and what is required when searching off-the-plan development courtesy of Apartment Developments. 

Owners Corporation Dues & Fees

Building management and regulation costs money and time, therefore the Owners (as a collective) in a strata plan must obligate to paying fees to the Owners Corporation. These fees are usually paid quarterly, biannually or annually (as decided by the Body Corporate). 
 
Rental Guarantee

Be cautious of rental guarantees as they can be issued and guaranteed by a financial institution that may not even exist by the time your apartment is finished.
 
Service Facilities

This refers specifically to utilities such as pipes, conduits and mechanical service areas that are designed to keep the building running.

Settlement Period

This refers to the completion time of the apartment. From here on, and once this occurs, the new owner can move in to the property. For off-the-plan sales the settlement/completion time is usually decided and stated as a number of days after the registration of the Plan of Subdivision or Certificate of Occupancy.

Special Conditions

When you negotiate your contract, any extra or additional conditions will be cited, listed and labelled under a Special Conditions paragraph in the contract. 
 
Square Metre

This refers to a square, where each side is measured at one metre. This term of measurement is used to measure apartments and their balconies.
 
Vacancy Rate

As you would have seen, real estate agents calculate the vacancy rate by dividing the vacant rental properties available by the amount of rental properties they have. If an agency has 10 properties, and 2 are vacant, then the vacancy rate is 20%.