Selling ‘off the plan’ for Developers

If you're a property developer in New South Wales, selling off the plan can be a valuable way to secure funding for your project and give buyers an opportunity to purchase property before it's built. However, there are specific contract, disclosure and timing requirements that should be addressed before sales material and contracts are issued.

That's where Biz Lawyers & Advisory comes in. Our firm specialises in property law and can provide developers with the necessary guidance and legal support throughout the selling off the plan process.

Developers must obtain:

• the necessary approvals from the relevant authorities such as local councils and the NSW Department of Planning and Environment and ensure compliance with zoning laws and building regulations.

Developers must also provide prospective buyers:

• a contract of sale which must details such as the:
  • purchase price,
  • the details of the property being sold, including the address and any relevant lot number,
  • the proposed design, plans and specifications.
  • sunset date, which is the date by which the development must be completed. If the development is not completed by this date, the buyer may be entitled to cancel the contract and receive a refund of their deposit;
  • the process for making changes to the plan and any requirements for obtaining the buyer's consent,
• a disclosure statement which includes information such as:
  • description of the property being sold, including its location, size, and layout.
  • description of the development, including the proposed design and specifications, the expected completion date, and any facilities or amenities.
  • any restrictions or limitations impacting the property, including any easements, covenants or other encumbrances that may affect the buyer's use of the property.
  • details of the planning approvals obtained for the development, including any conditions attached to the approvals;

A Developer should have:

• a good understanding of the property market and any factors that may impact the value of the property in the future, such as proposed developments or changes to local zoning laws.
• The ability to price the property appropriately and ensure that it is competitive in the market.

Off-the-plan contract and disclosure issues

NSW off-the-plan laws include requirements around documents attached to contracts, disclosure material, notices of changes, buyer rescission rights, compensation and restrictions on sunset clauses. Developers should have a process for managing contract updates, plan or schedule changes, deposit arrangements and settlement timing as the project progresses.

By obtaining the necessary approvals, preparing a contract of sale and disclosure statement, having insurance in place, and understanding the property market, developers can support a clearer transaction and reduce avoidable contract issues. We also assist with related off-the-plan buyer issues, commercial property matters and developer contract enquiries.