Off-the-plan property lawyers

The advantages of buying off the plan include:

Stamp duty savings – depending on the stage of construction when you buy, you may save a significant amount of stamp duty.

Capital growth – many buyers find the property has increased in value by the time it settles.

Unfortunately, there are also potential downsides:

The property may fall in value – our lawyers can help negotiate contract terms that protect you if values drop. Otherwise, you may need to find extra funds at settlement and pay more than the property is now worth.

The property isn't delivered – if this happens, a property lawyer can help.

Your off-the-plan contract sets out what the developer must deliver to you.

We often hear from buyers who feel the finished property is quite different from what they were promised. In some cases, if the developer has departed significantly from the original contract, the law allows the buyer to rescind the contract and get their full deposit back. This happens more often than you might think.

Here are some common changes that may “materially” affect your property and give you the right to end the contract:

1. a change to the size of the property;
2. a change to your responsibilities or rights relating to common property;
3. removal of a storage area.

Not every change is “material”. It depends on the circumstances, but in many cases a change that looks minor can still give you the right to end the contract and get your full deposit back.

We've also noticed some developers notify buyers of plan of subdivision changes directly, rather than through their lawyers. This isn't best practice.

Once you (if you're acting for yourself) or your lawyer receive notice of a change to the plan, if the change is “material” you have 14 days to decide whether to end the contract – so timing is critical. If you miss this deadline, you may lose that right. You may have other legal ways to get out of the contract, but they can be more complex and take longer.