Buying off the plan: what to check before you sign

Buying off the plan means committing to something that does not exist yet. The contract is where that risk is allocated — which is why it deserves proper legal review rather than a skim.

This is a checklist to work through with your own solicitor or conveyancer. It is general information, not legal advice, and it is not a substitute for having your specific contract reviewed.

The sunset date

Every off-the-plan contract has a date by which the plan must be registered or the building completed. Ask:

• what is the sunset date, and is it realistic given the current stage?
• what happens if it passes — who can rescind, and on what conditions?
• what notice must be given, and what are my rights if the vendor seeks to rescind?

Your deposit

• How much is payable, and when?
• Where is it held, and in whose name?
• Is a deposit bond or bank guarantee acceptable instead of cash?
• On what conditions can it be released to the vendor before completion?

What can change

Off-the-plan contracts usually permit some variation. Understand:

• what tolerance applies to floor area, and what happens if the finished home falls outside it
• which finishes and inclusions are fixed, and which are "or equivalent"
• whether car parking, storage and unit numbering are fixed
• what happens to the common property and amenity shown in marketing material

Cooling off and disclosure

In NSW, off-the-plan contracts carry specific disclosure requirements and cooling-off provisions. Your solicitor will explain what applies to your contract, what you have received, and what you should have received.

Practical checks

• Get every representation that matters to you into the contract in writing.
• Keep the marketing material you relied on, dated.
• Ask what warranties apply on completion and how defects are handled.
• Understand the strata or community-title arrangements and the estimated levies.
• Talk to your lender early: valuation at completion, not at signing, is what matters.

Before you commit to one project

Compare at least two or three genuine alternatives at a similar stage. It is much easier to judge whether a contract is reasonable when you have seen more than one.