How to Buy Off-the-Plan Safely in Victoria

 
 

Buying off-the-plan means signing a contract for a property that hasn’t been built yet. While it can offer early-bird pricing and tax benefits, it also comes with real risks — from delays and design changes to falling property values. Here’s how to protect yourself when buying off-the-plan in Victoria.

1. Understand the Sunset Clause
A sunset clause sets the deadline by which the project must be completed. If the developer doesn’t finish by this date, the contract may be terminated — by either party.

Make sure:

  • The sunset clause isn’t too long (some exceed 36 months)

  • The developer can’t unreasonably cancel just to resell at a higher price

  • You understand your right to withdraw if delayed

2. Get a Full Copy of the Plan and Specifications
The contract should include:

  • Floorplans

  • Materials and finishes schedule

  • Fixtures and appliance list

  • External and common area drawings

Don’t rely on artist impressions or display suites. Ask your conveyancer to review everything.

3. Beware of Contract Variation Clauses
Off-the-plan contracts often give the developer wide powers to:

  • Change layouts or finishes

  • Substitute fixtures

  • Extend timelines

We review contracts for unfair variation rights and can negotiate stronger protections.

4. Finance Can Be Tricky
Most banks won’t give full approval until the property is complete. Your financial situation might change in the meantime — or the property might not value up.

To protect yourself:

  • Don’t overcommit financially

  • Keep your savings buffer intact

  • Choose long settlement only if you can still qualify for finance later

5. Watch for Special Levies or Owners Corporation Risks
Early-stage developments may come with:

  • Higher-than-expected body corporate fees

  • Special levies for building defects

  • Incomplete or provisional owners corporation rules

We’ll review the OC certificate and ensure you understand what’s disclosed (and what isn’t).

6. Factor in Property Market Shifts
If the market drops before settlement, you may be left overpaying for a property that’s worth less than your contract price. This can jeopardise your finance.

7. Check Builder Registration and Developer History
Make sure the builder is registered and has Domestic Building Insurance (if applicable). We can help check for past liquidations or building complaints.

How We Help
At Victorian Property Settlements, we:

  • Review off-the-plan contracts in full

  • Flag variation and delay risks

  • Ensure your deposit is properly held in trust

  • Help you plan for long settlements and future finance needs

Click here to request a contract review before signing anything off-the-plan.

Victorian Property Settlements – Trusted for over 25 years by Victorian buyers and sellers. Visit: www.victorianpropertysettlements.com.au