Strata Living Legalities: A Guide for Renters and Owners
Buying property off the plan has become a popular option in Australia, especially for first home buyers and investors looking to secure a property at today’s price with the intention of settlement in the future. While the concept has its appeal—brand new builds, modern design, and potential for capital growth—it is not without risk. This is where Property & Leasing Law plays a crucial role in guiding buyers through the legal process.
Buying off the plan means purchasing a property before it is built. Instead of walking through a completed home, you are buying based on architectural plans, floor layouts, and marketing material. Developers sell these properties in advance to fund construction.
Because the property does not physically exist yet, strict legal frameworks apply to protect buyers. Under Australian Property & Leasing Law, developers are required to provide detailed contracts, disclosure statements, and warranties.
Reviewing the Contract of Sale
The contract of sale for an off-the-plan property is more complex than a standard property purchase. It must contain:
A disclosure statement outlining key details such as lot size, finishes, and common property.
Sunset clauses, which set a deadline for the property to be completed. If construction is delayed, either party may have rights to terminate.
Inclusions lists, specifying fixtures, fittings, and finishes.
Developer rights, such as making changes to design or layout.
Because of these complexities, engaging an experienced property lawyer or conveyancer is critical. They will identify risks, negotiate terms, and ensure your interests are protected.
Cooling-Off Periods and Deposits
In most Australian states, buyers of off-the-plan properties are entitled to a cooling-off period. This allows time to review the contract with legal guidance and withdraw if needed.
Typically, a deposit of 5–10% is required, held in a trust account until settlement. Legal advice ensures that deposit terms comply with relevant state laws and are secure.
Finance and Loan Pre-Approval
Since settlement may not occur for 12–36 months, buyers must plan carefully for finance. Mortgage pre-approval does not last indefinitely, so buyers often need to reapply closer to completion.
Banks also conduct a valuation at settlement—if the market has changed, the property’s value may differ from the contract price, potentially leaving buyers with a funding shortfall. Legal advisors often recommend contingency planning for this risk.
Monitoring Development Progress
Property & Leasing Law requires developers to update buyers on significant changes. However, legal disputes often arise where modifications impact the size, layout, or quality of the property.
Buyers should stay informed throughout construction and seek legal advice if material changes are proposed.
Settlement and Transfer of Title
Once construction is complete, the property undergoes inspections and must be registered with the relevant land titles office.
The settlement process involves:
Final inspections to check for defects or incomplete work.
Transfer of title from the developer to the buyer.
Payment of stamp duty (with concessions available for first home buyers in some states).
A property lawyer ensures settlement runs smoothly, addressing any last-minute issues with the developer or lender.
While buying off the plan can be rewarding, risks include:
Delays in construction due to approvals or financing issues.
Changes in market value, affecting loan approvals.
Developer insolvency, which can jeopardise deposits.
To protect buyers, Australian states have strengthened legislation in recent years. For example, developers must now provide longer disclosure periods, limit changes to contracts, and be transparent with buyers.
Why Legal Advice is Essential
Property & Leasing Law is complex, particularly with off-the-plan contracts. Engaging a lawyer ensures:
Contracts are reviewed thoroughly.
Risks are explained clearly.
Rights are protected if disputes arise.
Compliance with all legal requirements.
Buying property is a major financial commitment, and legal guidance is the best safeguard against costly mistakes.
If you are considering buying a property off the plan, don’t navigate the process alone.
Contact New South Lawyers today. We’ll ensure your contract is fair, your rights are protected, and your investment is secure from start to finish.
