Buying off the plan in QLD, NSW and VIC

What does buying off the plan mean?

You agree to buy a property before the proposed lot has its own registered title, often before construction is complete. This can involve an apartment, townhouse or a lot in a new subdivision. Buying an already titled lot with a separate building contract is a different arrangement and needs its own advice.

The developer’s drawings, specifications and disclosure documents help describe what you are buying. Do not assume a display suite, sales brochure or estimated completion date is a binding promise: check what the signed contract actually includes.

1. Gather the documents before signing

• The complete proposed contract, special conditions and all attachments
• The disclosure statement, draft plan, specifications and any schedule of finishes
• Proposed strata or body corporate documents, by-laws and estimated levies where relevant
• The deposit terms, estimated completion timing, sunset date and settlement notice period
• Any incentives or promises you want included in the contract

2. Review the contract and your finance risk

Ask your conveyancer or solicitor to explain variation rights, what happens if the lot’s area or layout changes, delay provisions, default consequences and any right to nominate another buyer or resell. A right to end the contract depends on the state law, the contract and the particular change; not every change allows cancellation.

Finance pre-approval today is not a guarantee of lending at settlement. Your circumstances, lending rules or the lender’s valuation may change during construction. Discuss a possible valuation shortfall and your cash buffer with your lender before committing.

3. Check the state-specific disclosure and buyer protections

Cooling-off rights can be limited or excluded, including for some auction-related purchases or where validly waived. NSW generally provides 10 business days for residential off-the-plan contracts. Do not rely on a cooling-off period as a substitute for review before signing.

4. Understand deposits, delays and sunset clauses

Confirm who holds the deposit, whether it must stay in trust, when it can be released, and what happens if the contract ends. Victoria limits deposits for relevant off-the-plan sales to 10% of the purchase price. Do not assume the same cap or rules apply to every transaction in another state.

A sunset clause deals with a specified event not happening by a deadline, such as plan registration. It is not a guaranteed move-in date or an automatic refund. NSW and Victoria restrict a developer’s use of certain residential sunset clauses. Queensland’s Land Sales Act restrictions apply to relevant off-the-plan land sales, not community titles schemes such as apartments. Get advice about the law and clause that actually apply to your property.

Keep copies of every revised plan and developer notice. Forward them promptly to your adviser because any objection, compensation or termination right may have a short deadline.

5. Prepare for completion and settlement

• Refresh your loan approval and arrange the lender’s valuation early enough for the contractual settlement timetable
• Have your adviser check the registered plan and final documents against the contract and required disclosure
• Arrange any permitted pre-settlement inspection and record defects; defects do not automatically let you delay settlement
• Complete identity verification, authorities, insurance enquiries and settlement funding arrangements
• Confirm payment details by calling a trusted number, then wait for settlement confirmation before organising key collection

What should you budget for?

Allow for the deposit and balance of the price, transfer duty if applicable, registration charges, searches, electronic settlement costs and your professional fees. Apartments and townhouses may also involve ongoing strata or body corporate levies.

Off-the-plan contract review and conveyancing work are quoted separately by DJR. Ask for a written quote for your specific contract rather than relying on the standard residential review fee or a standard-property instant quote. Duty concessions and off-the-plan concessions vary by state and eligibility; check the relevant revenue office before budgeting.