Buying off the plan means signing a contract for a property that has not been finished, or sometimes not started. NSW gives off the plan buyers extra protections: a disclosure statement before you sign, a 10 business day cooling off period, limits on the deposit and how it is held, and limits on when the developer can use the sunset clause.
NSW protections for off the plan buyers
| Protection | What it means |
|---|---|
| Disclosure statement | The developer must give you key details before you sign, including the plans, by-laws, schedule of finishes and proposed levies |
| 10 business day cooling off | Double the usual period; you can pull out for 0.25% of the price |
| Deposit limit | The deposit is capped and must be held in trust or a controlled account until settlement |
| Notice of material changes | The developer must tell you about changes that would materially affect you, and you may be able to end the contract or claim compensation |
| Sunset clause limits | The developer generally needs your consent or a Supreme Court order to end the contract under a sunset clause |
Before you sign
- Read the disclosure statement against the contract. They should match
- Check the sunset date and what happens if it passes
- Check the finishes schedule and any right for the developer to substitute items
- Check the proposed strata levies and by-laws
- Think about finance: the valuation happens at settlement, not now, so a lower valuation then can leave you with a shortfall
Before you settle
Occupation certificate: confirms the building can be lawfully occupied. Your lender will usually require it, and you should not settle without it.
Home Building Compensation Fund certificate: for buildings it applies to, it gives cover for defects if the builder dies, disappears or becomes insolvent. Many high-rise buildings over three storeys are exempt, but the strata building bond scheme may apply instead.
Pre-settlement inspection: check the finished property against the plans and finishes schedule, and list any defects. See our pre-settlement checklist.
Common questions
FAQs
How long is cooling off for off the plan in NSW?
10 business days.
What happens if the building is not finished by the sunset date?
You may be able to end the contract and get your deposit back. The developer cannot simply cancel to resell at a higher price.
Can I sell before settlement?
Some contracts allow it, often with the developer's consent. Check the contract.
Sources: NSW Government: buying off the plan · Home Building Act 1989 (NSW)
City Peak Conveyancing acts on NSW property only. This page is general information, not advice about your circumstances.