Off-plan (off plan, off-plan purchase)

In an off-plan deal, the developer sells units in a project that exists only on paper or is still under construction. The buyer pays a deposit and then instalments, often tied to construction stages, and takes the finished home on completion.

Why buyers choose it:

• a lower price than similar completed homes;
• time to spread payments;
• the chance to choose a unit early, and sometimes finishes.

The risks:

• Delay: projects often finish late.
• Non-delivery: the developer may run out of money or abandon the project.
• Changes: the finished home may differ from the brochure.
• Title problems: the land may not be properly titled, or the developer may never pass title to buyers.
• Approvals: the building may lack planning approval.

What a good off-plan contract covers: the exact unit and specification; the payment schedule; the delivery date and penalties for delay; what happens if the project stalls, including refunds; when and how you receive your deed and title; and service charges after completion.

Regulation. In Lagos, real estate developers must register with LASRERA, the state real estate regulator, so checking a developer's registration is a basic step. No law we found requires payments into escrow, though some buyers insist on it.

• Lagos: check LASRERA registration and the planning permit for the building; title documents should be searchable at the Land Registry.
• Abuja (FCT): check the developer's allocation and development approval with the FCTA.
• Other states: rules on developers vary; due diligence on title and approvals matters even more.