Buying off the plan.
You are buying a property that is not yet built. The contract is long and the risks are real. Read it with us first.
An off-the-plan contract asks you to pay a deposit now for a property you will receive later.
It sets out what you will get, when you will get it, and what happens if the developer runs late.
These contracts are written for the developer. We read them for you.
What the seller must give you
The seller must attach a disclosure statement to the contract. It sets out key information, including the sunset date.
The seller must also give you:
- The draft plan.
- The proposed schedule of finishes.
- The draft by-laws.
10 business days to cool off
For off-the-plan residential contracts, the cooling-off period is 10 business days.
If you withdraw, you pay the seller 0.25% of the price.
The period can only be waived or shortened with a certificate from your own lawyer or conveyancer, after the contract has been explained to you.
Where your deposit is held
Your deposit must be held in a trust or controlled money account until settlement.
It cannot be released to the developer before settlement.
A bank guarantee or deposit bond can be used instead of cash only if the developer agrees before you sign.
Sunset clauses
A sunset clause sets a date by which the plan must be registered or an occupation certificate issued.
If that date passes, the contract can be ended.
A developer who wants to end the contract under a sunset clause needs your consent, or an order from the NSW Supreme Court.
Other clauses that let the developer end the contract are not sunset clauses. We check each one.
If the developer changes the plan
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 property.
If you are materially prejudiced, you can:
- 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.
Eligible off-the-plan buyers may be able to defer transfer duty for up to 12 months. The amount of duty does not change.
Common questions
How long is the cooling-off period off the plan?
10 business days for residential contracts.
Can the developer cancel my contract?
Under a sunset clause, only with your consent or a Supreme Court order. Other clauses may give other rights. We check the contract for each one.
What if the finished unit is different?
If the change is material and prejudices you, you may be able to end the contract or claim compensation of up to 2% of the price. You have 14 days to act.
Do I pay stamp duty straight away?
Eligible buyers may defer it for up to 12 months.
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