Off-the-Plan Purchases: Questions to Ask Before You Sign
By Kenan AkyildizUpdated October 20264 min read
Buying off the plan means committing to a property before it is built, based on plans, drawings and a display suite. It can be a good way to buy, with a smaller deposit now and a completed home later, and there are duty concessions that can make it attractive. It also carries risks that do not exist when you buy an established home.
Before you sign an off-the-plan contract, here are the questions worth asking.
What does the sunset clause say?
A sunset clause sets a long-stop date by which the development must be completed and titles registered. If that date passes and the development is not finished, you as the purchaser can generally choose to end the contract and have your deposit refunded.
The developer's position is different, and this is where the law has changed. Under the Sale of Land Act 1962, a vendor no longer has the same cancellation rights as the purchaser. A developer cannot simply cancel an off-the-plan contract under a sunset clause. To cancel, they must either get your written consent, or obtain an order from the Supreme Court of Victoria allowing the cancellation. This change was made to stop developers cancelling contracts so they could resell the property at a higher price.
Check the sunset date, and understand your rights if it passes. This is one of the most important clauses in the contract.
What will the owners corporation cost?
Almost every off-the-plan apartment or townhouse sits within an owners corporation, and the fees can be significant, especially in buildings with lifts, pools, gyms or concierge services. Ask for an estimate of the annual owners corporation fees, and remember that estimates for a new building can rise once it is running.
What exactly are you getting?
With no finished property to inspect, the contract and plans are all you have. Check the finishes, fixtures, appliances and floor plan carefully, and understand what the developer can change. Many contracts allow the developer some flexibility to substitute materials or adjust the layout, so read the specification schedule closely.
Do you qualify for the stamp duty concession?
Off-the-plan purchases can attract a duty concession because duty may be calculated on the value before construction is complete, rather than the full contract price. Victoria currently has a temporary off-the-plan concession that applies to eligible apartments and townhouses and is open to all buyers, including investors, for contracts signed within the concession period. There is also a longer-standing concession linked to the principal place of residence and first home buyer benefits.
The rules and dates change, so confirm your position with the State Revenue Office or your lawyer before relying on any concession.
How solid is the developer and builder?
The quality of your finished home depends on who is building it. It is reasonable to ask about the developer's and builder's track record and previous projects. In newer high-rise buildings, defects and issues such as cladding have been a real concern, so it is worth understanding what warranties and protections apply.
What is your deposit doing?
Your deposit is usually held in trust or covered by a deposit bond until settlement. Understand where your money sits, how it is protected, and when it is released. A long gap between paying a deposit and settling means your money is committed for a while, so this matters.
Get the contract reviewed
Off-the-plan contracts are long, detailed and weighted toward the developer. They are one of the clearest cases for having a property lawyer review the contract before you sign, rather than a conveyancer alone. Orange Legal Group reviews off-the-plan contracts and explains the sunset clause, the owners corporation position and the duty concession in plain terms, so you know what you are committing to.
Frequently asked questions
Is buying off the plan risky?
It carries risks an established purchase does not, including construction delays, the sunset clause, the developer changing finishes, and uncertainty about the finished product. Those risks are manageable with the right advice and a careful read of the contract before you sign.
When do I pay stamp duty on an off-the-plan purchase?
Land transfer duty is generally payable at settlement, once the property is complete and title is ready to transfer. If a concession applies, it reduces the dutiable value used to calculate what you pay.
What happens if the developer misses the sunset date?
If the sunset date passes and the development is not complete, you as the purchaser can generally choose to end the contract and have your deposit refunded. The developer's position is more limited. Under the Sale of Land Act 1962, a developer cannot cancel under a sunset clause unless you give written consent or the Supreme Court of Victoria makes an order allowing it. Have the clause reviewed before you sign so you understand your rights.
Talk to Orange Legal Group
Orange Legal Group offers fixed-price conveyancing and property law advice across Victoria, handled by qualified property lawyers in plain language, with no hidden fees. If you are buying, send us your Contract of Sale and Section 32 and we will review them before you sign. Your first review is free when you go on to use us for the conveyancing.
This article is general information current as at 2026 and is not legal advice. Property law and duties in Victoria can change. For advice on your situation, speak to Orange Legal Group or check the relevant government source.