- 1An off-the-plan contract can run for years before settlement, so the sunset, variation and deposit terms matter as much as the price.
- 2Read the disclosure statement carefully — it describes what you are actually buying.
- 3Finance approval and valuation at settlement can differ from what you expected when you signed.
What makes off-the-plan different
When you buy off the plan, you sign a contract for a lot — a unit, townhouse or house-and-land package — before the building is finished and before the lot is registered. Settlement happens once the plan is registered, which can be months or years after you sign.
That time gap creates risks that an ordinary purchase does not have: the project could be delayed, the final product could differ from the plans, the market could move, and your finances could change. The contract determines who bears those risks.
The disclosure statement
Sellers of proposed lots must give buyers disclosure material describing the lot and, for community titles schemes, the proposed body corporate arrangements — including estimated levies, by-laws and any proposed agreements that will bind the body corporate.
We review this material with you, compare it with the contract, and flag anything unusual: long-term service or management agreements, exclusive use areas, levy estimates that look low, or plans that do not match what was marketed.
Sunset clauses and variations
A sunset clause sets a date by which the plan must be registered. If it is not, the contract generally gives a right to terminate. Queensland law limits the circumstances in which a seller can rely on a sunset clause to terminate, but the specific rules that apply depend on the contract and when it was entered into, so each contract needs to be checked.
Contracts also allow the seller to make some changes to the plan or the building. Check how much change is allowed, and whether you can terminate or claim compensation if the change is significant — for example a reduced floor area, a different car park or a changed outlook.
Deposits, finance and settlement
Understand how much deposit is payable, when, and where it is held. Some contracts allow a deposit bond or bank guarantee instead of cash.
Because settlement may be years away, your finance approval at the time you sign may not be valid by settlement. Lenders will value the property at the time of settlement, and if the valuation is lower than the price you may need to make up the difference. Planning for that possibility before you sign is essential.
Common questions
Can I sell an off-the-plan contract before settlement?+
Some contracts allow you to assign or nominate another buyer, subject to the seller's consent and, in some contracts, a fee. Others prohibit it. Check the contract before you rely on this.
What if the finished apartment is different from the plans?+
It depends on the contract and on how significant the change is. Some changes are permitted; others may give you a right to terminate or claim compensation. Get advice as soon as you notice the difference, as time limits can apply.
Sources & further reading
- ↗Queensland Legislation — Land Sales Act 1984 (Qld) and Body Corporate and Community Management Act 1997 (Qld)
- ↗Queensland Government — law and justice — buying off the plan
This guide is general information about Queensland and Australian law and is not legal advice. Laws change and every situation is different — speak with us about your specific circumstances before acting.
