How do you Buy ‘Off the Plan’ Management Rights?
When we are talking about property and property developments, and we use the phrase “off the plan”, it means we are talking about a property development that is not yet complete. Buying a lot off the plan, means you are buying a lot that does not yet exist. It could be nothing more than a picture on a plan for an empty block of land, but it might also be a fully constructed apartment in a building just weeks away from registration as a strata scheme.
Buying Management Rights off the plan, means you are buying the opportunity to be the first Management Rights operator in a new strata scheme development.
In most circumstances you will buy an off the plan Management Rights business from the developer who is constructing and selling lots in the strata scheme development. The contract that you enter with the developer is not an ordinary contract like you would enter to buy an existing business.
In an off the plan contract, the developer is agreeing to use the position of power that the developer will hold over the strata scheme when it is first registered, to ensure that one of the first actions for the newly formed Body Corporate is to appoint you as the official Management Rights operator for the strata scheme. In addition, the developer will help steer the purchasers of lots in the strata scheme towards using your letting services.
Negotiating the right terms and conditions in an off the plan contract is extremely important as it can be several years between when you sign the contract and when the building is complete. The difference between having and not having the right advice when you enter an off the plan contract can be the difference between paying for a viable business and paying for nothing.
The Management Rights team at Small Myers Hughes have years of experience dealing with off the plan Management Rights sales and regularly provides assistance to both developers selling and operators buying. At any one time Small Myers Hughes are acting on multiple off the plan sales across Australia, from well established markets in Brisbane and the Gold Coast, through to the growing market of Melbourne.
Our Management Rights team also help developers to incorporate Management Rights into their developments, creating new income opportunities that may have otherwise been missed by the developer.