Off-the-plan purchase workflow
Off-the-plan contracts sit somewhere between a regular purchase and a development agreement. The risks are front-loaded — the buyer is committing to an asset that does not yet exist — and the contract review is where most of the client's protection comes from.
This is an 8-step workflow for acting for a purchaser on an off-the-plan residential purchase in Australia. It covers contract review, cooling-off, disclosure, sunset clauses, deposit protection, and settlement.
Before you start
- Draft contract and disclosure documents from the vendor
- Client identification and source-of-funds checks complete
- Client instructions on finance and any FIRB requirement
- Indicative settlement and sunset date from the developer
The workflow
Review the disclosure statement
Review the vendor's disclosure statement — draft plan, schedule of finishes, proposed strata plan, by-laws, and budget. Note any right to vary.
Advise on cooling-off and pre-exchange rights
Advise the client on cooling-off rights in the relevant state and any pre-exchange inspection opportunity. Issue s 66W certificate only after full advice.
Review sunset clauses and vendor termination rights
Review sunset clauses, vendor-right-to-rescind provisions, and the restrictions introduced in recent years on vendor use of those clauses.
Check deposit protection
Check the deposit is held in a statutory trust or bond, and confirm the release provisions. Flag any early release clauses that would put the deposit at risk.
Advise on FIRB and stamp duty
Advise on FIRB approval if the client is a foreign person, and the stamp duty position including any off-the-plan concessions in the relevant state.
Exchange contracts
Arrange signing and exchange, ensure the deposit is paid into the nominated trust, and serve the cooling-off waiver certificate where applicable.
Monitor construction and notifications
Monitor developer notifications during construction, respond to any variation notices, and keep the client updated on the sunset date.
Prepare for settlement
On notice of registration, prepare for settlement — pre-settlement inspection, adjustment calculation, PEXA workspace, and final funds flow.
What you will have at the end
A well-advised off-the-plan purchase with a reviewed contract, protected deposit, clear settlement pathway, and the client fully aware of the sunset and variation risks.
Common issues
- Sunset clauses not flagged and the vendor rescinding years later
- Schedule of finishes too generic to enforce at settlement
- Deposit released early without client consent
- FIRB approval missed for a foreign client
- Adjustment errors at settlement due to long conveyance gap
Run this workflow on a real matter
Quillio reviews off-the-plan contracts for sunset, variation, and deposit release risks and drafts a plain-English advice letter for the buyer. See /practice-areas/property-lawyers or /free-trial.
General guide only — not legal advice. Off-the-plan regimes vary significantly between states; confirm the local rules.
Try this workflow with Quillio.
Quillio can run this workflow on a real matter, with citations to current AU authority on every step. The free trial requires no credit card.
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