Off-the-plan contract negotiation checklist
Off-the-plan contracts are developer-drafted and favour the vendor. Purchaser lawyers should negotiate sunset clause, variation rights, finishes, and deposit protection. This checklist applies across Australia with state-specific variations.
This is a 12-step checklist for negotiating an off-the-plan contract on behalf of a purchaser. It covers sunset, variations, finishes, and deposit protection.
The checklist
Identify the development
Obtain the disclosure plan, schedule of finishes, and proposed plan of subdivision.
Review sunset clause
Check sunset date, extension rights, and the vendor's termination rights.
Negotiate sunset extension limits
Negotiate limits on how many times the vendor can extend sunset.
Check deposit protection
Confirm deposit is held in trust or by bond and not released before settlement.
Check disclosure of amendments
Check vendor obligations to disclose material amendments to the plan.
Negotiate variation rights
Negotiate limits on vendor variations to plan, size, and orientation.
Review schedule of finishes
Review finishes and negotiate "equivalent quality" substitution rights.
Check strata disclosure
Review proposed by-laws, strata plan, and common property areas.
Check defect rectification
Confirm defect rectification period and developer warranty terms.
Check duty deferral
Check duty deferral rules for off-the-plan under state duties legislation.
Advise on finance risk
Advise buyer on the risk of finance change between contract and settlement.
Diarise sunset and milestones
Diarise sunset date, construction milestones, and practical completion notice.
When this checklist applies
Use before a purchaser executes an off-the-plan contract.
Common pitfalls
- Sunset extension clauses unlimited
- Deposit released before settlement
- Variation rights too wide
- Finance approval stale at settlement
- Strata by-laws changing before registration
Run this checklist on a real matter
Quillio can review an off-the-plan contract and flag vendor-favourable terms. See /practice-areas/property-lawyers or start a free trial.
General guidance for off-the-plan contract negotiation. Apply specific state law and development disclosure rules.
Use this checklist on your matter.
Quillio can run this checklist on a specific NSW conveyancing matter — confirm each item, calculate adjustments, and generate the supporting documents. The free trial requires no credit card.
Start your free trial