Property & conveyancing
Off-the-plan purchases.
Off-the-plan contracts are written by the developer's lawyers to protect the developer. They are long, heavily one-sided, and full of clauses that let the builder change finishes, adjust the floorplan or push settlement out, sometimes by years. A buyer is committing to a property that does not exist yet, so the contract, plan of subdivision and disclosure material are worth understanding in detail before signing.
Solicitor-reviewed
Contract, plan of subdivision and disclosure statement looked at in detail.
Fast turnaround
Risk review typically within a few business days of instruction.
Fixed fee, quoted first
One fixed fee for the review, a separate fixed fee through to settlement.
Victorian property law
Sale of Land Act sunset clause protections and duty concession rules applied.
What you are actually buying.
Buying off the plan means buying a promise: a lot described by plans, specifications and a schedule of finishes, not a physical property you can inspect. Everything a buyer can rely on later has to be written into the contract now, so the plans, the finishes schedule and exactly what the developer can change without consent are where the attention goes.
The sunset clause is the biggest single risk. It sets the date by which the plan of subdivision must register, and lets either party end the contract if it is not met. In a rising market that clause has been used by developers to cancel and resell at a higher price; Victorian law now restricts that conduct, but the date, the notice rights and the refund terms still vary between contracts and still need to be read carefully.
The off-the-plan duty concession can reduce what a buyer pays, because duty is assessed on the land value plus construction completed at the contract date rather than the full contract price, and eligibility interacts with first home buyer concessions. Working the position out early, before committing, is worthwhile. Between signing and settlement the registration timeline runs over a long period, and a pre-completion inspection against the contracted finishes is worth arranging.
New builds carry a GST step at settlement. For new residential premises a buyer generally has to withhold part of the price and pay it directly to the ATO, with the vendor required to give notice of the amount. The obligation sits with the buyer, so it is one to get right.
For off-the-plan apartments in taller residential buildings, the Sale of Land Act 1962 adds specific buyer protections, including that a buyer cannot be required to take possession before an occupancy permit issues, and rights to rescind in defined circumstances.
A buyer's finance approval has to still be valid when the plan finally registers, which can be twelve to thirty-six months after signing. Building that timing into the planning helps avoid being caught with an expired approval on the day settlement is called.
Why off-the-plan contracts need closer scrutiny.
The sunset clause needs close reading
The registration date, the notice period and what happens to the deposit if the plan is delayed set out when and how the contract could end without the buyer's say. These are worth understanding before signing.
Variation rights are identified upfront
Most contracts let the developer substitute finishes or alter the plan within limits. What those limits are is worth knowing, and tighter ones may be negotiable.
The duty concession is worth checking before signing
The off-the-plan concession can materially reduce what a buyer pays, but eligibility depends on price, use and construction stage. It is worth working out early, not after committing.
Defects are worth addressing before settlement
A pre-settlement inspection against the contracted specifications gives the best chance of raising issues while there is still leverage.
Talk to us before you sign if.
- You are considering an apartment, townhouse or house still under construction
- The contract includes a sunset clause you don't fully understand
- You want to know whether you qualify for the off-the-plan duty concession
- The disclosure material lacks detail on finishes or inclusions
- You are relying on finance approval that may not last through to registration
- You are buying to occupy, rather than to hold as an investment
- The developer has asked you to sign variations after the initial contract
- Settlement is approaching and you want a defects inspection arranged
The earlier the contract is seen, the more room there is to act. Once signed, most of what remains is managing the wait and protecting the position at settlement.
How an off-the-plan purchase runs.
- 01
Review
The contract, plan of subdivision and disclosure statement are looked at, and the key risks identified.
- 02
Negotiation
Where possible, tighter sunset, variation and deposit terms may be negotiated with the developer's lawyers.
- 03
Sign and lodge
The duty concession position is confirmed and the contract signed and duty lodged correctly.
- 04
The wait
Registration progress is monitored, with finance approval and timing kept on track through to notice of settlement.
- 05
Inspection and settlement
A pre-settlement defects inspection is arranged, then settlement completes through PEXA.
Transparent off-the-plan fees.
The contract review is quoted as a fixed fee, separate to the fixed fee for the conveyancing through to settlement. Both costs are known before any work begins, and the review fee is credited against the conveyancing fee where we go on to act on the purchase.
FAQs
Off-the-plan purchase FAQs.
Still unsure? Call us on (03) 9008 7224 and speak to a lawyer, not a call centre.
What is a sunset clause and should I worry about it?
Can the developer change my apartment after I sign?
Do I pay less stamp duty buying off the plan?
How long before an off-the-plan purchase settles?
What happens if the developer is delayed past the sunset date?
What should I check before settlement?
Do I have to withhold GST at settlement on a new build?
What does an off-the-plan review not cover?
Related services.
Contract & section 32 review
A fixed-fee review of any Victorian contract of sale and vendor statement.
Learn moreBuying property
Contracts reviewed before you sign, conditions negotiated and settlement run for a fixed fee.
Learn moreFirst home buyers
Grants, duty concessions, cooling off and auction rules explained plainly before your first purchase.
Learn moreOwners corporation & strata
OC certificates, rules, levies, defects and disputes for apartment and townhouse owners.
Learn moreConsidering an off-the-plan purchase?.
Send us the contract, title or plan and we will tell you where you stand. Start online in a few minutes, or book a consultation and speak to a property lawyer the same business day.