A NSW off-the-plan seller must attach a disclosure statement and a set of draft documents to the contract.
The seller must also tell the buyer about changes during the build, and give the registered plan before settlement.
If a required document is missing, the buyer may be able to end the contract within 14 days.
Documents attached to the contract
The seller must attach to the contract:
- A disclosure statement setting out key information, including the sunset date and other events the contract depends on.
- A draft plan prepared by a registered surveyor.
- Any proposed schedule of finishes.
- Any document proposed to be lodged with the plan.
- Draft by-laws.
- For a proposed strata scheme, the draft strata management statement, and for a development scheme, the draft strata development contract.
- Any draft building management statement.
- For a lot in a proposed community, precinct or neighbourhood scheme, the draft management statement and any proposed development contract.
Why these documents matter
The draft plan shows what lot you are buying and where it sits.
The schedule of finishes shows what the developer has said will be built and fitted.
The draft by-laws set the rules you will live under, such as rules on pets, parking and renovations.
Read them together with the contract before you sign.
If a document is missing
If the disclosure statement or another required document is not attached, the buyer may end the contract by written notice within 14 days after the contract is made, unless the sale has settled.
The contract is then treated as never made, and the deposit and other money paid must be refunded.
Home building compensation cover
If building work has not started, the developer must give the buyer proof of home building compensation cover within 14 days.
If the developer does not, the buyer can cancel the contract.
Notices during the build
The seller must tell you about changes that make the information you were given inaccurate in a way that adversely affects your use or enjoyment of the lot.
If you are materially prejudiced by the change, you may:
- End the contract and have your deposit returned, or
- Settle and claim compensation of up to 2% of the price.
You have 14 days from being told of the change to act.
Before settlement
The seller must give you a copy of the registered plan at least 21 days before settlement.
Compare it with the draft plan you were given. If there is a difference, call us straight away.
Where people get caught
Signing without reading the by-laws
Draft by-laws can restrict how you use the lot.
Not checking the schedule of finishes
If a finish is not listed, the developer may not have promised it.
Missing the 14 day window after a change notice
Your right to end the contract or claim compensation must be used within 14 days of being told.
Not comparing the registered plan with the draft
The registered plan arrives at least 21 days before settlement. Check it against the draft.
Common questions
What is a disclosure statement?
A document attached to an off-the-plan contract setting out key information, including the sunset date.
What if the developer changes the plan?
The developer must tell you. If the change materially prejudices you, you may end the contract or settle and claim up to 2% of the price, within 14 days.
When do I see the final plan?
The seller must give you the registered plan at least 21 days before settlement.
Buying off the plan? Send us the contract and disclosure statement before you sign. Call (02) 8062 6300.
This article is general information only. It is not legal advice for your situation.