Buying off-the-plan lets you secure a home before it is built, often at today’s price and with time to arrange finance. It suits first home buyers, upsizers and investors who like the idea of a brand-new property. A purchase like this runs on a longer timeline than an established home, so a few extra checks along the way help it go well. These are the seven areas to review before you sign and as the building progresses, so the home you receive matches the one you chose.
Important Things To Know Before Buying A Property Off-The-Plan
An off-the-plan contract is signed months or even years before settlement, so it carries more detail than a standard sale. Work through each of the points below with your conveyancer before you commit. This guide is general information, and your own contract is the best source for exact terms. A conveyancer can review that contract with you, line by line, and answer questions as they come up.
Developer Reputation & Track Record
A reliable developer is the foundation of a good off-the-plan purchase. Look at completed projects: visit them, see how the finishes have aged and how the building is maintained. Search for the developer and the builder by name and read what owners say. Check how long they have been operating, who the key people are, how many projects they have delivered and whether past buildings finished close to the original timeframe.
Ask the agent for the builder’s registration details and confirm the project has its finance in place, along with the required planning approvals. Established developers are usually pleased to share this information, and what you learn helps you judge whether the project will arrive as promised. A short chat with current owners in an earlier building is one of the most useful steps, because they can tell you how the developer handled communication, handover and the weeks after moving in.
Contract & Legal Terms
The contract and the disclosure documents that come with it set out everything you are agreeing to. Read the plans, the specifications and the list of inclusions, then check what the developer may change after you sign, such as minor layout adjustments, floor areas and finishes. Some variations need your consent, while small ones may not, and the contract says which.
A conveyancer reads these terms in detail, explains them in plain language and can suggest amendments before exchange, so the contract suits your plans, which is far easier than after. It also helps to ask about the timeline for the registration of the plan, the likely settlement window and how much notice you will receive, so your finance, removalists and tenants, if you are an investor, can all be arranged in good time.
Deposit Security & Trust Accounts
The deposit is usually the largest payment before settlement, so it matters where it sits. Deposits are generally held in a trust account until a point set out in the contract, such as registration of the plan or settlement. The contract names who holds the funds and when they are released.
Confirm that the account is held by a legal practitioner or licensed agent, and check whether the deposit earns interest and who receives it. If a bond or guarantee is offered in place of cash, make sure you understand how it works. Your conveyancer can confirm each of these details for you. It is also worth keeping receipts and confirmation of every payment, so the records are tidy for settlement and for your own files.
Financing & Valuation Planning
Your loan approval is based on today’s property value, but settlement happens later. Pre-approvals usually carry an expiry date, so speak with your lender or broker about timing and whether the approval can be refreshed. Banks value the property close to settlement, using the completed building and recent sales nearby.
If the valuation matches the contract price, the loan proceeds as planned, and if it differs, you may need extra funds, so keeping a buffer is wise.
Budget for stamp duty and ask whether an off-the-plan concession or a first home buyer concession applies to you. A broker can build a finance plan that fits the full timeline. Many buyers also set aside funds for legal fees, loan costs, furniture and moving, so the first weeks in the new home are relaxed and enjoyable.
Sunset Clauses
A sunset clause sets a date by which the developer must complete the project. If building finishes by that date, settlement goes ahead. The clause gives the project a clear timeframe, and each state regulates how it can be used. Check the date and ask whether it can be extended and by how long.
Victoria and NSW both place rules around developers who wish to end a contract under a sunset clause, so ask your conveyancer how these apply to yours. A realistic sunset date, with some allowance for weather and approvals, is a good sign of a well-planned project, and it gives you confidence in the timeline. Many projects finish ahead of the sunset date, and keeping a diary note of the key dates means you are ready when the developer sends the notice of completion.
Inclusions & Customisation
Inclusions turn a plan into a home, so read the schedule carefully. Look at flooring, benchtops, cabinetry, appliances, fixtures, window coverings, storage and car parking. Many developers offer upgrade packages or a choice of colour schemes, so ask what is available and the date by which you need to decide. Get every agreed upgrade written into the contract or a signed addendum, along with its price.
Photographs or samples from a display apartment make helpful references for colours and materials, and the specification schedule is what binds the developer, so match the two. Clear inclusions mean you move into the home you imagined. If you plan to rent the property out, choose finishes that are durable and neutral, since they suit a wide range of tenants and are easy to maintain.
Pre-Possession Snagging/Inspection
Before settlement, you should inspect the finished property. This pre-possession inspection is the time to compare the home with the contract and plans. Check walls, paint, tiles, doors, windows, taps, appliances and lighting. Note anything that needs adjusting, such as a loose handle, a paint touch-up or a scratch, in a written snag list. Consider engaging an independent building inspector, who knows what to look for and prepares a detailed report.
Send the list to the developer through your conveyancer so each item is recorded and attended to, and ask for a date by which the work will be done. Most developers also offer a defects period after settlement, so ask how long it runs. Keeping your snag list, photos and emails together makes follow-up simple, and a quick re-inspection confirms that each item has been completed.
Conclusion
Buying off the plan can be a rewarding way to secure a new home, and careful checks make the journey smoother. From developer reputation to the final inspection, each step benefits from expert guidance and a clear plan. Our team at Easy Link Conveyancing supports buyers across Victoria and NSW with off-the-plan purchases, from the first read of the contract through to settlement. Visit the Off the Plan Purchases page or call 1800 327 954 to request a quote and talk through your contract before you sign.