Buying
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By PropRoo Team
Buying off the plan: questions to ask before you sign
Off-the-plan purchases offer choice and time to plan, but they also carry specific risks. These are the questions worth asking before you commit.
Buying off the plan means agreeing to purchase a property before it is built or completed. It can give you a wider choice of layouts and finishes, and more time to prepare your finances. It also means committing to something you cannot fully inspect yet, so careful due diligence is essential.
Who is the developer and builder?
Research the developer’s and builder’s track record. Look at projects they have completed, visit them if you can and read independent reviews. Check that the builder holds the appropriate registration in your state.
What exactly am I buying?
Review the plans, specifications and schedule of finishes in detail. Confirm the floor area, inclusions, car parking, storage and any shared facilities. Ask how changes to the design or finishes would be handled and what your rights are if they occur.
What does the contract say about timing?
Off-the-plan contracts usually include an expected completion timeframe and a sunset date. Understand what happens if construction is delayed and when the contract can be ended. Rules about sunset clauses differ between states, so have the contract reviewed by a solicitor or licensed conveyancer before you sign.
How will finance work at settlement?
Your loan is usually assessed closer to settlement, which may be some time away. Lending conditions and the property’s valuation can change in that period. Speak with your lender or broker early about how this could affect you, and plan for the possibility that the valuation differs from the purchase price.
What ongoing costs should I expect?
For apartments and townhouses, ask for estimated owners corporation (strata) fees and what they cover. Also allow for council rates, insurance and any maintenance responsibilities.
Get independent advice
Have the contract and disclosure documents reviewed by a solicitor or conveyancer
Talk to your lender or mortgage broker about settlement timing
Consider an independent building inspection at completion, before settlement
Browse our current off-the-plan and house and land listings, or contact our team with questions about a specific project.
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