Buying off the plan means signing for something that doesn't exist yet. The contract is the only protection you have — and most first home buyers sign it without reading the clauses that decide whether they win or lose.
Buying off the plan means signing a contract for a home that doesn't exist yet. That single fact changes almost every risk calculation, and the contract is the only thing standing between you and a developer who is building to a 24-month timeline.
Most off-the-plan problems trace back to one error: signing without independent legal review. The developer's in-house conveyancer is not your adviser. They act for the vendor. That is not an accusation — it is how the legal system works — but it means the person handing you the contract has a commercial interest in you signing it.
The single most important thing on this page
Before you sign any off-the-plan contract, get it reviewed by a conveyancer or solicitor who works for you, not the developer. In NSW this typically costs $500–$900. In Victoria, $600–$1,100. It is the cheapest insurance in the entire property cycle, and it is the step most first home buyers skip.
What "off the plan" actually changes
An established purchase is a transaction between two owners of something that already exists. Off-the-plan is a contract for future delivery of something the seller has not yet built. Three consequences follow:
| Factor | Established | Off the plan |
|---|---|---|
| What you're buying | An existing, inspected building | A promise of a future building |
| Deposit at risk | Held in a trust account | Held in a trust account — but can be drawn down during construction |
| Deposit you need up front | Full deposit at exchange | Usually 10% total, often paid over 12–24 months |
| Who bears delay risk | Generally nobody — it exists | Depends entirely on the sunset clause |
| Your inspection rights | Full building and pest inspection | Often waived — you are buying sight unseen |
| Valuation risk | Low — you see it | High — bank may value it lower than you paid |
The seven clauses that decide everything
These are the clauses worth fighting over. Your conveyancer will raise them, but know them yourself.
1. The sunset clause — most important, most misunderstood
A sunset clause lets the vendor walk away from the contract if the project isn't finished by a set date, usually extended 12 months. What almost every buyer misunderstands is the direction of the protection.
Asymmetric by design
A standard sunset clause lets the vendor out. It usually does not let you out if the developer is running late. So if construction slips from mid-2027 to mid-2028, the vendor can terminate — but you cannot, even though you're paying rent in the meantime.
| Scenario | Vendor may exit? | You may exit? | Risk level |
|---|---|---|---|
| Project finished on time | No | No | Low |
| Project 9 months late, within sunset | No | No | Medium |
| Project past sunset date | Yes | No | High |
| Developer collapses mid-build | N/A — insolvent | Unsecured creditor for part of your deposit | Critical |
What to ask for: a reciprocal sunset clause letting you exit with your full deposit if completion slips past the date. Many developers will agree, especially where the project is oversold. If they refuse, ask why — and weight that answer heavily.
2. Deposit draw-down schedule
Many contracts let the developer draw your deposit during construction — 10% at exchange, then instalments at foundation, frame, lock-up. This is how projects get funded. It also means your money leaves your account before you get anything.
Ask for the exact schedule in writing, and check what happens to the remainder if the contract terminates at 30% drawn. Some contracts forfeit it. That is where first home buyers lose real money.
3. Variations clause
Almost every off-the-plan contract permits the developer to substitute materials, fittings and finishes of "equivalent" quality. In practice, this is where off-the-plan buyers are disappointed — you pay for a stone benchtop, you get a laminate one, and the contract says it's "equivalent".
What to ask for: a schedule of "inclusions" as an annexure, and a variation clause that requires your written consent for any substitution. Read the inclusions list carefully — "stainless steel appliances" does not mean the brand you'd have chosen.
4. Definitions of "completion" and "occupancy"
Check whether "completion" means practical completion or certificate of occupancy. The gap between them can be weeks, and during that gap you're liable for land rates on an apartment you can't move into. Some contracts make the vendor pay land rates until occupancy; many don't.
5. Post-occupancy defect liability period
Victoria mandates a 7-year structural defect period under the Building Act. Elsewhere there is no statutory equivalent — NSW relies on the general 6-year limitation period on contract claims. If you buy in NSW, know that your structural cover is shorter and harder to enforce than a Victorian buyer's.
6. The "unbeatable features" schedule
Marketing material is aspirational. Only what appears in the contract is binding. If the display suite shows 2.7m ceilings and the plan shows 2.6m, the plan wins. If the brochure mentions a "sky garden" and the contract annexure doesn't, there's no sky garden.
7. Registration and mortgage
Confirm who pays mortgage registration costs if you buy with a loan, and that the contract permits registration of your mortgage. Rarely a deal-breaker, but a late surprise at settlement.
Why developers ask you to use their conveyancer
The incentive, stated plainly
The developer's legal panel pays a referral fee to the conveyancer. That conveyancer then has a commercial reason for the settlement to complete smoothly and on time. It is not fraud and most conveyancers are scrupulous. But it is a structural conflict, and your money is on the line.
You can absolutely use your own conveyancer. Some developers charge a "cancellation fee" if you do — usually capped at a few hundred dollars. Several states also legislate against penalising buyers for exercising this choice, so read the contract and know your rights. The fee is trivially small next to a contract review that catches a bad sunset clause.
Before you sign: the review checklist
- Walk away from the display suite paperwork. Nothing binds you in a display suite. Take the contract draft home or have it reviewed first.
- Get your own conveyancer involved before you commit. Not after you've signed. Ideally before you've paid a deposit.
- Ask for the sunset clause in writing and check whether it's reciprocal. If they won't say, that's the answer.
- Read the inclusions annexure, not the brochure. List what you think you're getting, then check it line by line.
- Ask whether the deposit is drawable during construction and at what points.
- Confirm the cooling-off period applies. Most states give you one, but some contracts and some project sizes do not. Know which state you're in and whether yours qualifies.
- Check the valuation risk in writing. If the bank values the finished apartment lower than your purchase price, who covers the gap? Some contracts cap the vendor's liability; many do not.
- Ask about the defects liability period and get it in the contract, not the sales brochure.
If you remember one thing
A sunset clause that only releases the vendor means you carry all the delay risk and none of the exit. Get it reciprocal, or price that risk into your decision — and accept that if the developer stalls for two years, you may not be able to leave.
Cooling-off by state
Cooling-off periods are statutory in most states, but the details differ enough that you need to check your own jurisdiction rather than assume.
| State | Typical cooling-off | Notes |
|---|---|---|
| NSW | 5 business days (residential sale) | Developer off-the-plan sales are generally excluded. Check before assuming. |
| VIC | 5 business days (residential sale) | Applies broadly. Off-the-plan under the sale of land provisions can vary. |
| QLD | 5 business days (residential sale) | Applies broadly to off-the-plan in most cases. |
| WA | 5 business days | Applies broadly. |
| SA | 5 business days | Applies broadly. |
| TAS | 5 business days | Applies broadly. |
| ACT | 5 business days | Applies broadly. |
| NT | Not applicable — no cooling-off regime | Do not sign without advice. |
Note: cooling-off rules are frequently amended and exceptions are common in the off-the-plan sector. Treat this table as a prompt to check, not as the answer. Verify with your own conveyancer in the relevant state.
We publish general information, not legal or financial advice. Off-the-plan contracts, conveyancing and settlement law vary by state and by individual circumstances. Always have your own independent legal adviser review any contract before you sign — the cost is trivial against the risk. Found something wrong? Tell us.