A payment plan makes land reachable for people who cannot pay in one sum, and that is a genuinely good thing. It also introduces terms that most buyers never read until they need them. Read them at the start, when you have leverage, rather than at the end, when you do not.
Find the real price. Compare the outright price against the total of all instalments. The difference is what the plan costs. Sellers often describe a plan as interest-free while quoting a higher headline price for it, which is a price difference by another name. It may still be worth paying — that is your decision — but you should make it knowing the number.
Check what is included. A quoted plot price frequently excludes the deed of assignment fee, survey fee, development or infrastructure levy, and any charge payable at allocation. Ask for the complete schedule of every payment due from first instalment to final documents, and ask whether the excluded items are fixed or subject to change.
Establish whether the price can move. Some plans allow the developer to revise the price during the term. Whether or not that is acceptable, you must know it exists before you sign, and you should know what triggers it and by how much.
Understand what a deposit secures. Ask specifically whether your deposit reserves an identified plot with a number, or a place in a scheme with allocation to follow. Those are very different things, and the second is where disappointment usually starts.
Read the default terms before you need them. Grace period, late fee, and what happens to a plan that falls seriously behind. Ask whether the plot can be reallocated, what is refunded on termination, what is deducted, and how long a refund takes. Get the deduction expressed as a number or a percentage, not as a phrase.
Ask when title transfers. In almost every plan, documents are issued on completion, not on the first payment. That is normal. What is not acceptable is being unclear about it. Ask what you hold in the meantime — a contract of sale and receipts — and what happens to your position if the developer runs into difficulty before you complete.
Check whether early completion is allowed, and whether it is rewarded. Many buyers find their circumstances improve. Ask whether you can pay off the balance early, whether there is a discount for doing so, and whether there is a penalty.
Ask whether the plan is transferable. If your circumstances change, can you assign the plan to somebody else, and on what terms?
Match the instalments to your actual income, not to your best month. The most common reason a plan fails is not fraud; it is a schedule agreed optimistically. A longer plan you will certainly finish is better than a shorter one you might not.
Keep every receipt, and reconcile them. Ask for a statement of account periodically and check it against your own records. Disagreements about how much has been paid are common and are much easier to resolve early.
Our own plans and their terms are set out on each listing that offers one. If anything in this guide is not answered there, ask us, and we will put the answer in writing.
Still deciding what to buy?
Tell us the size, the area and the budget. We will tell you what fits and what the documentation position is on each one.