Buying Off the Plan

Buying property “off the plan” is a popular option for home buyers and investors, particularly for apartments, townhouses, and new residential developments. An off-the-plan purchase involves entering into a contract before construction is completed, relying on plans, specifications, and proposed finishes provided by the developer.

While this approach can offer attractive pricing, government incentives, and long-term growth potential, it also involves unique legal and financial risks. Understanding the contract structure, disclosure obligations, and buyer protections is essential before committing.

At Vojdani Lawyers, we regularly advise clients on off-the-plan purchases and help ensure contracts are structured to minimise risk and protect your interests from signing through to settlement.

An off-the-plan purchase occurs when a buyer signs a contract for a property that has not yet been built or completed. The contract is based on architectural and survey plans, proposed layouts, finishes, and specifications, with settlement occurring months or sometimes years later once construction and title registration are complete.

Off-the-plan contracts are typically developer drafted and heavily favour the seller unless carefully reviewed. These contracts usually include detailed plans and specifications, a deposit requirement (often between 5% and 10%), an estimated completion timeframe, and provisions allowing the developer to make certain variations during construction.

A sunset clause sets the latest date by which the developer must complete construction and register the title. If this date passes, one or both parties may have the right to terminate the contract and recover the deposit.

It is critical to note that Queensland’s strengthened sunset clause protections (which prevent developers from terminating simply to re-sell at a higher price) currently apply primarily to off-the-plan land sales under the Land Sales Act 1984 (Qld) (the Act). For land sales, a developer can generally only terminate with the buyer’s written consent or a Supreme Court order. However, these specific protections do not yet extend fully to all community title schemes (like high-rise apartments) in the same way, making the drafting of these clauses in apartment contracts a high-risk area for buyers.

Off-the-plan buyers may be eligible for stamp duty concessions and government grants. As of 1 May 2025, the Queensland Government introduced significantly expanded concessions for first home buyers purchasing new homes, which can include a full exemption from transfer duty regardless of the purchase price, provided eligibility criteria are met.

Additionally, for some developments, stamp duty may be assessed on the land value plus construction completed at the contract date rather than the final value. Eligibility criteria are strict, and incorrect structuring can result in lost concessions or unexpected duty liabilities.

Off-the-plan transactions involve risks that buyers should consider carefully:

• Construction Delays: Projects can extend well beyond the expected timeframe.
• Design Variations: Developers may be permitted to make changes that affect layout, size, or finishes.
• Valuation Shortfalls: If the property’s value drops before completion, your lender may require you to contribute extra cash at settlement to cover the gap.

Developers are required to provide a disclosure statement before the buyer signs the contract. While the new “Form 2 Seller Disclosure Statement” (effective 1 August 2025) applies to established properties, off-the-plan sales are still primarily governed by the Act and the Body Corporate and Community Management Act 1997 (Qld).

Developers must provide a disclosure statement that includes proposed plans, survey information, and (for units) a proposed Community Management Statement. If this disclosure is inaccurate or incomplete, buyers may have statutory rights to terminate.

We assist buyers at every stage of the off-the-plan process, including:

• Reviewing and negotiating complex developer contracts;
• Advising on the specific sunset clause risks applicable to your property type (Land vs. Apartment);
• Assessing disclosure compliance and identifying potential “out” clauses if the project changes; and
• Supporting clients through delays, variations, or disputes.