Law Plus Buying off-the-plan means signing a contract for a property — usually an apartment or townhouse — before it's built, based on plans, specifications and a display suite rather than the finished thing. It can mean a lower entry price and more time to arrange finance, but the contract carries risks a standard purchase doesn't, because you're agreeing to a lot of things that aren't fixed yet. Here's what to check before you sign.
Sunset clauses
Almost every off-the-plan contract includes a sunset date — the deadline by which the building must be completed and registered. If the developer misses it, the sunset clause usually allows either party to terminate. That sounds like buyer protection, but it can cut the other way: in a rising market, some developers have used sunset clause delays to walk away from contracts and resell at a higher price. Check how long the sunset period is, whether it can be extended and on what grounds, and what happens to your deposit if the contract is terminated under this clause.
Variations and "cosmetic" changes
Off-the-plan contracts typically allow the developer to make changes to the finished product — different fittings, finishes, layout tweaks, even changes to the size of your specific lot — provided the changes are within a defined tolerance or don't "materially" affect the property. The trouble is that "material" is doing a lot of work in that sentence, and contracts define it differently. Understanding what the developer is and isn't allowed to change, and what recourse you have if they overstep it, is one of the most important things a contract review covers.
Deposit bonds versus cash deposits
Because off-the-plan settlements can be a year or more away, buyers sometimes use a deposit bond — an insurance-backed guarantee — instead of paying a cash deposit upfront. This frees up your cash until settlement, but it's not free, and not every developer accepts every provider's bond. Confirm early whether the contract allows a deposit bond and what the provider requires.
Finance approval and settlement timing
Finance conditions in a standard purchase are usually satisfied within weeks. Off-the-plan finance is different: your loan approval needs to still be valid — or capable of being refreshed — potentially a year or more after you sign, when the building is finally complete and a settlement date is set, often with as little as two to three weeks' notice. Valuations can also come in differently once the building actually exists. Talk to your lender early about how they handle this before you commit.
What you're entitled to if the finished product doesn't match
Once the building is complete, there's usually a pre-settlement inspection. If there are defects or the finished product doesn't match what was promised, your rights depend heavily on the specific wording of the contract's variation and defects clauses — which is exactly why they need to be understood before you sign, not after you've moved in and discovered the problem.
Getting the contract reviewed early
Off-the-plan contracts are long, developer-drafted, and weighted toward the party who wrote them. A proper review before you sign — not after — is the difference between knowing what you've agreed to and finding out the hard way. Our Sydney office is led by conveyancing solicitor Wendy Wang, who has reviewed off-the-plan contracts across the Sydney market for more than 15 years, alongside our broader property and conveyancing team in Melbourne, Brisbane and Cairns.