Buying ‘off the plan’

When buying an off the plan property, the buyer is essentially purchasing a property that is yet to be constructed or developed. The process involves signing a contract to purchase the property, often before construction has begun, with the final purchase taking place years later once the property has been completed.

Buying an off-the-plan property can be an exciting prospect, but it is important to understand the contract, timing and potential risks before committing. Biz Lawyers & Advisory assists buyers with contract review, sunset dates, plan changes, deposits, settlement timing and legal issues that may need attention.

How we can assist with an off-the-plan purchase

1.
Reviewing the Contract of Sale: The contract of sale is a critical document when purchasing an off-the-plan property. Our lawyers can review key terms, raise issues for clarification or negotiation, and help you understand your rights and obligations as a buyer.
2.
Explaining Key Risks: Off-the-plan purchases can involve design or specification changes, construction delays, sunset dates, deposit arrangements and finance or settlement timing issues. Our team can explain the contract terms and the legal risks that may be relevant to your transaction.
3.
Assistance with Settlement: Settlement is the final stage of the purchase process, where ownership of the property is transferred to the buyer. Our team can coordinate legal settlement steps and help you understand key requirements before completion.
4.
Assistance with Disputes: If issues arise during the purchase process, we can advise on available options and, where needed, connect the matter with our litigation and breach of contract services.

Off-the-plan contract issues to check

NSW off-the-plan laws deal with documents attached to contracts, disclosure material, notices of changes, rescission rights, compensation and restrictions on sunset clauses. Buyers should understand how the contract deals with plan or schedule changes, deposit arrangements, completion timing, finance risk and what happens if settlement is delayed.

For related tax-withholding context, see our guide to GST withholding measures on new residential premises. If the purchase is in a strata scheme, see our guide to buying a strata apartment in Sydney.

We can review the legal documents and identify issues that may require clarification before exchange. For broader purchase support, see buying a property and our main property legal support page.

We also assist with related property matters including buying a property, selling a property and commercial and retail leasing for tenants. Contact us to discuss an off-the-plan contract before you sign.