The choice is about which risk you take, not how much
Buying off-plan means paying for something that does not yet exist, on the strength of a drawing, a specification and a promise. Buying resale means paying for something that does exist, along with everything that has happened to it and to its paperwork since it was built. Neither is inherently safer. They fail in different ways, at different points in time, and they are protected by different mechanisms. A useful way to compare them is to split risk into five categories and ask, for each, when the risk crystallises and what reduces it.
Five risk categories
1. Delivery risk
Off-plan: the building may be late, or in the worst case never finished. Delay is the normal outcome, and the contractual definition of the delivery date matters enormously. A date expressed as a quarter, subject to extension for defined events, with a grace period on top, is a far softer commitment than a fixed date with liquidated damages. Resale: delivery risk is close to zero, though completion can still be delayed by paperwork.
2. Specification risk
Off-plan: what is delivered may differ from what was shown. Floor area can vary within a tolerance, finishes can be substituted, marketed communal facilities may not be contractual, and the view can be built out. Resale: you can inspect, and the equivalent risk is undetected defects, which a survey addresses.
3. Valuation risk
Off-plan: you fix a price today for delivery in the future. If values fall in the interim and you are borrowing, the lender’s valuation at completion may be below your contract price and you must fund the gap. Resale: valuation happens close to the transaction, so the gap is short-lived.
4. Cashflow and liquidity risk
Off-plan: money is committed in stages before you own anything you can sell, let or occupy. If you are renting elsewhere meanwhile, a delay costs you twice. Resale: the money goes out once, and the asset starts producing use or rent immediately.
5. Legal and title risk
Off-plan: the risks are counterparty risks. Is the developer solvent, does it own the land free of charges, is the building permit final, are your staged payments protected. Resale: the risks are historic. Unauthorised alterations, works done without permits, boundary discrepancies, easements, undisclosed occupants, and unpaid building charges that may attach to the unit rather than to the seller.
Worked example: money at risk over time
The figures below are invented to show how staged exposure builds. They are not a real payment schedule.
Suppose an off-plan unit is priced at 200,000 in local currency with this schedule: 10 percent on contract, 20 percent at foundation, 20 percent at structural completion, 20 percent at roof, and 30 percent on handover. Cumulative exposure runs 20,000, then 60,000, then 100,000, then 140,000, then 200,000.
Note the shape. Before handover you have paid 140,000, which is 70 percent of the price, while holding a contract rather than a registered title. That is the position from which any dispute would be conducted.
Now add a twelve month delay. Suppose you rent elsewhere at 900 a month. The delay costs 10,800 in extra rent, 5.4 percent of the purchase price, on top of 140,000 committed and unproductive for a further year. If the contract gives delay compensation of 0.05 percent of amounts paid per week beyond the grace period, then over 52 weeks on 140,000 that is 140,000 x 0.0005 x 52 = 3,640, recovering roughly a third of the extra rent in this invented case. Whether such a clause exists, and whether it is capped, is what contract review is for.
| Risk | Off-plan exposure | Resale exposure | What reduces it |
|---|---|---|---|
| Delivery | High. Late or non-delivery | Very low | Fixed dates, penalty clauses, completion bond, escrow release tied to milestones |
| Specification | Moderate to high. Substitutions, area variance | Low, replaced by condition risk | Detailed annexed specification, area tolerance clause, snagging period, survey on resale |
| Cashflow | High. Staged payments, no use or income | Low. Single outlay, immediate use | Back-loaded schedules, interest on delayed handover, budgeting for parallel housing costs |
| Legal and title | Counterparty. Developer solvency, land charges, permits | Historic. Alterations, easements, arrears, occupants | Escrow accounts, bank guarantees, registry searches, permit and compliance checks |
What to check on an off-plan purchase
- Whether staged payments go into a protected escrow or trust account, and what triggers each release.
- Whether each payment is backed by a bank guarantee or insurance bond repayable if the project fails.
- Whether the land is owned by the contracting entity, and whether it carries a mortgage that must be released unit by unit.
- Whether the building permit is final and any appeal period has expired.
- Whether the preliminary contract can be registered against the title.
- The area tolerance, and what happens if the delivered area falls outside it.
- The defects liability period and who carries it if the contractor is dissolved.
- Whether assignment before completion is permitted, often the only early exit.
What to check on a resale purchase
- The registry extract, showing the owner, the described area, and every charge, mortgage, lien or restriction.
- Whether the physical property matches the registered and permitted description, since extensions, conversions and enclosed terraces are frequent sources of unpermitted work.
- Certificates of habitability, completion or compliance, whichever applies.
- Building charge arrears, and whether unpaid charges follow the unit.
- Minutes of owners meetings for approved or discussed major works.
- Occupancy status, including any tenancy that survives a sale.
- A condition survey, commissioned by you rather than by the seller.
The point that gets missed
Off-plan protections are contractual and written before you sign, so the negotiation is the protection. Resale protections are investigative and happen after you agree a price, so the due diligence period is the protection. We would resist compressing either to meet a deadline set by the other side, because the leverage disappears the moment the money moves.
Consumer protections for off-plan buyers, the treatment of unpaid building charges, and the rules on unpermitted works vary considerably between countries and sometimes by region. We have described categories of risk rather than the law of any place, and an independent local lawyer instructed by you should confirm what applies before you sign anything.
How to Use This Guide
Every worked example on this page is illustrative. The figures are chosen to show how the calculation behaves, not to report current market rates. Costs, tax rules and eligibility criteria differ by country and change over time, so take the method from this page and put your own current figures into it. Browse the rest of our guides, or see how we source and check our comparison figures on the about page.
Information only. This article explains how costs and rules are structured. It is not financial, tax, legal or immigration advice, and it is not a recommendation to buy any property, vehicle or investment. Confirm anything that affects a decision with the relevant local authority or a qualified professional before you act on it.
Last updated: August 14, 2026