Plain-English advice on off-the-plan contracts and house and land packages, before you sign.
Buying off the plan means signing today for a home that hasn’t been built yet. The contract is written by the developer’s lawyers, it can run for two or three years before settlement, and it usually lets the developer change things you’d assume were fixed.
Hendersons Legal reviews off-the-plan contracts for buyers across Victoria and acts on the purchase through to settlement. Buying a house and land package? We can do the conveyancing on the land and review the building contract, so one team sees the whole deal. This page is part of our conveyancing practice.
What you get
- A written summary of what you’re agreeing to, in plain English
- The sunset date, the plan of subdivision and the developer’s right to make changes, all checked
- Your stamp duty position, including any off-the-plan concession
- A fixed-fee estimate before we start
Apartments, townhouses, units and house and land packages across Victoria.
What an off-the-plan contract review covers
An off-the-plan contract review is a lawyer’s check of the developer’s contract and disclosure documents before you sign, so you know what you’re buying, what can change, and what happens if the project runs late. We look at:
- Sunset date. When it falls, how it can be extended, and who controls the extension.
- Changes to the build. What the developer can alter without asking you, the tolerance allowed on floor area and finishes, and your rights if a change goes further.
- Plan of subdivision. Your lot boundaries, car park and storage, and the proposed owners corporation with its rules and estimated fees.
- Deposit. How much you pay, who holds it, and when it can be released.
- Settlement terms. The notice period once the plan is registered, default interest, and whether your finance timing lines up.
- Stamp duty and GST. Which duty concession applies, and whether part of the price has to be withheld for GST at settlement.
- The developer. Who you’re actually contracting with, and what rights you have over defects after handover.
You get a written summary and a call to talk it through. If something needs to change, we tell you what to ask for while you still have some leverage, which is before you sign.
Your rights as an off-the-plan buyer
The Sale of Land Act 1962 gives off-the-plan buyers in Victoria some important protections. These are the ones we check against your contract.
Sunset clauses
A developer can only end a residential off-the-plan contract under a sunset clause if you agree in writing after at least 28 days’ notice, or if the Supreme Court allows it.
Late registration
If the plan of subdivision isn’t registered within 18 months of signing, or the period set in the contract, you can end the contract.
Changes to the plan
If the developer tells you about a change to the plan that materially affects your lot, you have 14 days to end the contract.
Your deposit
It’s capped at 10% of the price and has to be held on trust until the plan is registered. It can’t be released to the developer early.
Apartments
The developer can’t let you take possession of an apartment until an occupancy permit has been issued for it.
Sale of Land Act 1962 (Vic) ss 9AA, 9AC, 9ADA, 9AE, 10B and 10E. The sunset clause rules apply to residential contracts.
28 days
minimum written notice before a developer can ask you to agree to end your contract under a sunset clause.
Received a sunset clause notice?
Some developers used to rely on sunset clauses to cancel contracts and resell at a higher price. Since 2019 that has been much harder. The notice has to explain why the developer wants to end the contract, why the plan or occupancy permit has been delayed, and that you don’t have to agree.
If you say no, the developer can apply to the Supreme Court, which can only allow it if that’s just and equitable. The court looks at things like whether the developer acted unreasonably or in bad faith, the reason for the delay, and whether your lot has gone up in value. The developer has to pay your legal costs of that case unless the court finds you refused unreasonably. Don’t sign a consent until you’ve had advice.
Stamp duty when you buy off the plan
You pay duty on a reduced value, because construction costs incurred after you sign are taken off the price. There are two concessions. Which one applies depends on when you signed, what you’re buying and who you are.
Apartments, units and townhouses
- Contracts signed on or after 21 October 2024 and before 21 April 2027
- The lot must be in a strata subdivision with common property, such as a shared driveway
- Open to every buyer, including investors, companies and trusts
- No price cap, and you don’t have to live there
Home buyers and first home buyers
- You must qualify for the principal place of residence concession or the first home buyer exemption or concession
- After construction costs come off, the value must be $750,000 or less for first home buyers, or $550,000 or less for other home buyers
- Individuals over 18 only, not companies or trustees
- At least one buyer must move in within 12 months of settlement and live there for 12 months
- Can apply to house and land packages, not just apartments
Foreign purchaser additional duty is still worked out on the full price. These are the State Revenue Office settings as at October 2026. They change with state budgets, so we check them against your contract date.
House and land packages: two contracts, one team
Most house and land packages involve at least two contracts: one to buy the land from the developer, and a separate building contract with the builder. Each has its own rules, and problems tend to sit in the gap between them.
- The land contract. Lots in new estates are often sold before the plan of subdivision is registered. If it isn’t registered within 18 months, or the period in the contract, you can end the contract.
- The building contract. Usually an HIA or Master Builders contract. The builder’s deposit is capped at 5% where the price is $20,000 or more, and progress payments are generally limited by stage.
- The timing. Your building contract shouldn’t have you paying for work before you own the land. We check the two contracts line up.
- Cooling off. You can usually withdraw from a building contract within five business days, but not if a lawyer advised you on it before you signed. That’s why the review comes first.
- Site costs and allowances. Provisional sums and prime cost items have to be reasonable estimates, but they’re still where budgets blow out.
We can act on the land purchase and do a building contract review on the build, so both contracts are checked together and nothing falls between them.
Off the Plan Contract Review
Send us the contract before you sign
Our online form opens a file with our property team. Upload the contract and the disclosure documents, tell us when you need our advice, and we’ll take it from there.
- Your answers and documents go straight into our practice management system rather than an email inbox.
- Buying a house and land package? Upload the land contract and the building contract together.
- Leave anything blank if you’re not sure. We’ll follow it up with you.
What happens next
- We send you a secure link to verify your identity online through InfoTrack. You’ll need your passport or driver licence.
- We confirm the scope and give you a fixed-fee estimate, with our disclosure statement and costs agreement.
- Once you’ve accepted, we review the contract and send you our advice in writing.
Rather talk it through first? Call us on (03) 9629 2211.
Between signing and settlement
An off-the-plan purchase can sit quietly for years and then move very fast. These are the things we watch for you. See buying a property in Victoria for how we act on a purchase.
Finance and valuation
Your lender values the property when it’s finished, not when you signed. If the valuation comes in under the price, you cover the gap, and a pre-approval from years ago will have expired. Talk to your broker early.
GST at settlement
On new residential property you usually have to withhold part of the price for GST and pay it to the ATO at settlement. The developer has to tell you in writing beforehand, and we handle it as part of settlement.
Inspection and defects
Book a proper building inspection before settlement, not just a walk-through. Builders’ statutory warranties generally pass to later owners. Apartment buildings with a building permit issued after 1 July 2027 will also need a developer bond to cover defects.
The settlement notice
Once the plan is registered, the contract usually gives you a short window to settle, often only a few weeks. We start the settlement work well before the notice arrives.
Buying or selling commercial property off the plan?
The sunset clause protections above only apply to residential contracts, and cooling off doesn’t apply to land used mainly for commercial or industrial purposes. Commercial off-the-plan contracts need a different read, and we’re happy to do it. We also prepare off-the-plan contracts and Section 32 statements for vendors and developers.
Frequently asked questions
Yes. Off-the-plan contracts are written by the developer, can run for years, and usually let the developer change things a buyer would assume were fixed. Before you sign is the only time you can realistically ask for changes, so that’s when to have it read.
It’s a clause that lets the contract be ended if the plan of subdivision isn’t registered, or an occupancy permit isn’t issued, by a set date. In Victoria, a developer can only use it to end a residential off-the-plan contract if you agree in writing after at least 28 days’ notice, or the Supreme Court allows it.
Within limits set by the contract. Most contracts allow some variation in floor area and finishes. If the plan of subdivision changes in a way that materially affects your lot, you have 14 days after being told to end the contract. We check where your contract draws the line before you sign.
Less than on a finished property, because construction costs incurred after you sign are deducted from the dutiable value. A temporary concession covers apartments, units and townhouses in a strata subdivision for contracts signed before 21 April 2027, with no price cap. A separate concession applies to home buyers and first home buyers. We work out which one applies to you.
Yes. We can act on the land contract and review the building contract, so the two are checked together. Send us both contracts before you sign either of them.
Your deposit has to be held on trust until the plan is registered, so it isn’t handed to the developer early. If the plan isn’t registered within 18 months of signing, or the period in your contract, you can end the contract and get your deposit back.
This page is general information about Victorian law as at October 2026, not legal advice. Every contract is different, so send us yours before you sign.