An Off-the-Plan Buyer's Checklist

Buying off-the-plan means committing to a property that does not exist yet, based on plans, specifications and a display suite. That gap between contract and completion, often a year or more, introduces risks that do not apply to buying an established home. This checklist covers the areas an off-the-plan buyer needs to work through before signing and again in the lead-up to settlement.

Read the Contract for Variation Clauses

Off-the-plan contracts almost always include a clause allowing the developer to make minor changes to the finished product, from internal layout tweaks to changes in fittings and finishes. Have your conveyancer identify exactly how much variation the contract permits before you sign, since "minor" is defined differently across developers and states. Pay particular attention to clauses covering changes to floor area, ceiling height, and the substitution of inclusions listed in the schedule of finishes, since these are the details most commonly changed between contract and completion.

• Check how much variation to floor plan, finishes or fittings the contract allows.
• Confirm what remedy you have if a variation is more than minor.
• Ask what happens to your deposit if the project does not proceed.
• Review the disclosure statement and schedule of finishes line by line.

Understand the Sunset Clause

The sunset clause sets a date by which the developer must complete the building and register the plan, after which either party may be able to rescind the contract. Confirm the sunset date, understand the circumstances in which the developer can extend it, and ask your conveyancer to explain what happens to your deposit if the contract is rescinded, whether by you or the developer. Sunset clauses have attracted regulatory attention in several states after cases of developers using them to exit contracts and resell at a higher price, so understanding your rights here matters more than it might first appear.

Check How Your Deposit Is Held

Off-the-plan deposits are usually held in a trust account or under a deposit bond arrangement rather than paid directly to the developer, and the contract should specify which applies and under what conditions the funds can be released. Confirm whether the deposit is protected if the developer becomes insolvent before completion, and ask your conveyancer to check the developer's registered builder details and any public record of prior projects before you commit meaningful funds.

Arrange Finance With the Timeline in Mind

Finance approval for an off-the-plan purchase works differently to a standard purchase, since your lender is assessing a valuation that will not exist until the building is complete. Many lenders will only issue a formal approval closer to completion, so confirm with your broker or lender what pre-approval actually covers and revisit your finance position periodically as the completion date approaches, particularly if interest rates or your personal circumstances change during a long build period. The MoneySmart guide to buying a house covers general finance planning steps that apply whether you are buying an existing home or a property still under construction.

Plan for Settlement and the Pre-Settlement Inspection

Once construction is complete and the plan is registered, you will typically be given a defined notice period, often 14 to 21 days, before settlement is required. Use the pre-settlement inspection to compare the finished property against the contract and disclosure documents, noting any defects or discrepancies in writing and raising them with your conveyancer immediately, since the window to negotiate a remedy or delay settlement is short. If you are buying in a strata or community title development, also request the registered plan and the initial owners corporation budget before settlement.

Consider Stamp Duty and Concession Timing

Off-the-plan purchases sometimes attract different stamp duty timing or concessions compared to established properties, and the rules vary by state and change periodically, so ask your conveyancer to confirm current settings for your specific contract rather than relying on general commentary. This is general information rather than tax advice, and your accountant or conveyancer can confirm how it applies to your situation.

Check the Developer's Track Record

Before committing a deposit, research the developer's history of completed projects, including whether previous developments were finished on time and to the standard promised in marketing material. Look at how earlier projects were received by owners, check whether the developer has faced any building disputes or defect claims, and if possible visit a completed development by the same builder to get a realistic sense of finish quality rather than relying solely on a display suite. A strong sales campaign does not always reflect the quality of the finished product, and a pattern of delays or disputes across previous projects is a meaningful warning sign worth weighing against how much you like the plans.

It is also worth asking who will manage the building once complete and what the initial owners corporation or body corporate budget assumes for ongoing costs such as building insurance, common area maintenance and any shared facilities like a pool or gym. Developer-appointed managers sometimes set an initial budget that looks affordable, only for levies to rise once the true cost of running the building becomes clear in the first year or two of operation.

Get Your Conveyancer Involved Early

Off-the-plan contracts are longer and more heavily weighted toward the developer than a standard contract of sale, so having a conveyancer review the document before you sign, not just before settlement, gives you the best chance of negotiating unfavourable terms or walking away if the risk does not suit you. If you are also managing a residential sale to fund the purchase, tell your conveyancer early so the two timelines can be coordinated.