Buying a New Manufactured Home Under Construction: What You Need to Consider

This article contains general information only and is not legal advice. You should obtain advice about your circumstances before signing a site agreement or sale agreement. 

Buying a new manufactured home in Queensland can be an exciting opportunity, particularly within a new or expanding residential community. However, purchasing a manufactured home that is still under construction involves some important considerations.

You are committing to a home that you cannot yet fully inspect, and the timing of your move will depend on construction progress. Understanding the contract, construction timeframe and how the purchase interacts with the sale of your existing home can help you plan ahead.

Construction and Settlement Timing

The contract will usually provide an anticipated completion or settlement date, but this date may not be guaranteed.

The seller or developer may have rights to extend the construction or settlement timeframe. Before signing, understand the anticipated completion date, when you will be notified that the home is ready, how much notice you will receive before settlement and what rights you have if construction is significantly delayed.

This is particularly important if you are coordinating the purchase with the sale of your existing home.

What Are You Buying?

Because the home is still being built, you may be making your decision based on plans, specifications, display homes or marketing material rather than the finished home.

Make sure you understand what is included in the purchase price, what items are optional extras and whether the contract allows changes to plans, specifications or inclusions.

You should also understand the process for inspecting the completed home and identifying any defects before or after settlement.

Staged Developments and Community Facilities

Many new manufactured home communities are developed in stages. Your home may be ready for occupation while construction continues elsewhere in the park.

This can mean ongoing construction activity, noise, additional traffic and temporary changes to access after you move in.

Importantly, not all advertised community facilities may be available when you move in. Clubhouses, swimming pools, bowling greens, gyms and other facilities may form part of a later stage.

Check which facilities already exist, which are proposed and whether the contractual documents provide any commitment about when they will be completed. Marketing material, plans and artist impressions should not necessarily be treated as a guarantee that all proposed facilities will be available when your home is completed.

Selling Your Existing Home

Many buyers need to sell their existing property to fund their new manufactured home. This makes the subject to sale condition and settlement timing particularly important.

Some conditions require you to enter into a sale contract by a particular date, while others may also require that sale to settle within a specified timeframe.

There can also be a timing mismatch between the transactions. Your existing home could settle before your new home is ready, leaving you needing temporary accommodation and storage. Alternatively, your new home could become ready before your existing property settles, potentially creating a funding issue.

Do not assume the seller or park operator will automatically extend settlement if your sale is delayed or cover accommodation or storage costs if construction takes longer than expected.

Where possible, the sale and purchase should be considered together so the conditions and settlement arrangements are appropriately coordinated.

Don’t Forget the Site Agreement

You will also enter into a Site Agreement with the park operator, which governs your right to occupy the site and your ongoing relationship with the park.

The Site Agreement should be considered alongside the home purchase contract, particularly the site rent, future rent increases, ongoing obligations and community rules.

Get Advice Before You Sign

Buying a manufactured home under construction involves committing to a future home and an ongoing arrangement with the residential park.

Getting legal advice before signing can help you understand the construction and settlement provisions, what is included in your purchase, the status of community facilities, your Site Agreement and how the purchase will interact with the sale of your existing property.

Identifying these issues early can help make the transition into your new manufactured home as smooth as possible.

More Questions?

Keylaw’s Lifestyle and Retirement Living team are available to answer any questions you might have. Contact us today.