Key points
- A sunset clause sets a deadline for the development to be completed. In Victoria, a seller generally can’t use it to end a residential contract without your written consent or a Supreme Court order.
- Check what changes the developer can make to the plans, finishes and size of your lot.
- Your loan approval is assessed close to settlement, which may be years away, so plan for valuation and interest rate risk.
- Find out how defects will be handled and what warranties apply.
What “off the plan” means
You sign a contract to buy a lot, such as an apartment or townhouse, before it’s built or before the title is created. You usually pay a deposit at signing and the balance at settlement, which happens after the building is completed and the plan of subdivision is registered.
1. Sunset clauses
Off-the-plan contracts include a sunset date. If the plan of subdivision isn’t registered by then, the contract can be ended. In Victoria, for residential off-the-plan contracts, the seller must generally get each buyer’s written consent or a Supreme Court order before ending the contract under a sunset clause, and must give written notice explaining why. This protects buyers from a developer ending a contract just to resell at a higher price.
2. Changes to the plans
Contracts often allow the developer to make changes, such as to the floor area, layout, finishes or common property. Check how much can change, whether you must be notified, and what rights you have if a change materially affects you.
3. Deposit and finance
- Find out who holds the deposit and on what terms. In Victoria there are limits on deposits for off-the-plan sales.
- Lenders assess your loan close to settlement, not at signing. If property values fall or your circumstances change, you may need to find more money.
- Ask whether a deposit bond or bank guarantee can be used instead of cash.
4. Owners corporation
Most off-the-plan lots are in an owners corporation. Review the proposed rules, estimated fees, and any arrangements the developer has entered into, such as long-term management or service contracts.
5. Defects and warranties
Check how defects will be reported and fixed after settlement, and what warranties apply under domestic building laws. Inspect the property carefully before settlement, ideally with a building inspector.
6. Stamp duty
Off-the-plan purchases may be eligible for a duty concession, depending on the property, the price, and the rules in force when you sign. Check with the State Revenue Office or ask us before you sign.
Get the contract reviewed first
Off-the-plan contracts are long and often favour the developer. Asher Freeman Lawyers reviews off-the-plan contracts before you sign, explains the key risks in plain English, and acts for you through to settlement, usually for a fixed fee.
Frequently asked questions
Can the developer cancel my off-the-plan contract?
For residential off-the-plan contracts in Victoria, a seller generally can't end the contract under a sunset clause without your written consent or a Supreme Court order.
When do I pay the balance?
At settlement, after the building is completed and the plan of subdivision is registered.
What if my loan isn't approved at settlement?
You could be in breach of the contract. Get finance advice early, and plan for valuation and interest rate changes.
Can the developer change the apartment?
Contracts often allow some changes. Check the limits, notice requirements and your rights before you sign.
This article is general information about Victorian and Australian law as at 10 October 2026. It is not legal advice. Contact us for advice about your situation.
