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Buying a property "off the plan" that is, purchasing a home before it's built has become increasingly common in Melbourne. With many new apartment projects and housing estates in Victoria, off the plan purchases offer the chance to secure a brand-new property at today's price for tomorrow's home. However, off the plan conveyancing comes with unique considerations and risks that buyers need to understand. This guide will walk you through the key aspects of off the plan contracts in 2025, focusing on common mistakes to avoid and practical tips to protect your interests. By learning how to navigate off the plan contracts, Melbourne buyers can approach these deals with confidence and make informed decisions.
What Does Buying Off the Plan Mean?
"Off the plan" means you are buying a property that hasn't been built yet, based on the developer's plans and specifications rather than a finished home. In practical terms, you'll sign a contract now for a property that may only be completed in a year or two (or more). Typically, you pay a deposit upfront and the remaining balance at settlement once construction is finished. The contract of sale will include details like the purchase price, expected construction timeline, completion date, and any conditions you must meet.
In Victoria, the contract is accompanied by a Section 32 Vendor's Statement (required by law) which discloses important information about the property (title details, any restrictions, outgoings, etc.). Because you cannot inspect an unfinished property, your decision relies on floor plans, building designs, and the developer's promises. This makes it crucial to review the contract and Section 32 carefully and ensure you fully understand what is being offered.
How Off the Plan Conveyancing Works
Conveyancing for an off the plan purchase involves some differences from a regular property sale. Your conveyancer or solicitor will review the lengthy contract (often drafted by the developer's lawyers) and the Section 32 statement, explaining clauses and advising on any red flags.
Once you sign and pay the deposit, there may be a long period of waiting. During this time, the conveyancer may not be actively involved day to day, but they will:
- Monitor any changes or amendments the developer notifies
- Ensure the deposit is held in trust
- Be ready to assist as settlement approaches
When the property is nearing completion, the plan of subdivision will be registered and a settlement date will be set (often within 14 days of registration). Your conveyancer will then help with final checks, adjustment of rates/fees, and settlement of the balance.
Off the plan conveyancing requires staying vigilant over potentially years between signing and completion, so having a trusted professional guiding you is essential.
Why Buy Off the Plan? Benefits for Buyers
Buying off the plan can be appealing for several reasons, especially in a competitive market like Melbourne:
Locking in Today's Price
Off the plan purchases often let you secure a property at a fixed price now, even though it will be delivered later. In a rising market, this can mean instant equity by the time you settle. Developers sometimes offer launch pricing or incentives that make the initial price attractive. Potential cost savings are a drawcard you might pay less than you would for a similar established property in the future.
Stamp Duty Savings and Grants
Purchasing a new or off the plan property can come with stamp duty (land transfer duty) concessions in Victoria. Notably, in 2025 there is a temporary off-the-plan stamp duty concession that applies to all buyers (not just first home buyers or owner occupiers) for contracts signed between 21 October 2024 and 20 October 2025.
This allows you to pay duty only on the land/component completed at contract time effectively deducting any future construction costs from the dutiable amount. For example, on a $1,000,000 off the plan apartment where $400,000 of construction is yet to be done at signing, you would pay stamp duty on roughly $600,000 instead of $1 million, saving nearly $24,000 in tax.
Additionally, first home buyers in Victoria can still benefit from the First Home Owner Grant (FHOG) (a $10,000 grant for new homes up to $750,000), as well as first home stamp duty exemptions/concessions if eligible. These financial incentives make off the plan purchases attractive to a broad range of buyers in 2025.
Customization and New Property Perks
As the first owner of a new property, you often have the opportunity to select finishes or colour schemes, and enjoy a home built to modern standards. Off the plan buyers may be able to request certain customisations or upgrades (depending on the developer's offerings).
Moreover, a brand new property means lower maintenance in the initial years and warranty protections (builders in Victoria must provide a 7 year building warranty insurance for structural defects on new homes). Everything is unused and under warranty, from appliances to structural elements, giving peace of mind that any defects should be rectified by the builder.
More Time to Save and Prepare
When you buy off the plan, settlement is typically many months (sometimes 1 to 3 years) away. This gives you extra time to save money after paying the deposit.
You can use this period to build up your funds for the final payment, arrange financing, or sell an existing property. It can be easier to manage financially, since you're not paying the full amount until later. Additionally, if you're an owner occupier, you have more time to plan your move, furniture, and life changes before the property is ready.
Potential Market Gains
While it's never guaranteed, if the property market rises during the construction period, your off the plan home could be worth more by the time you settle. Some buyers even choose to on sell (assign) their contract before settlement at a profit if the contract allows.
(Note: This can be lucrative in a booming market, but you should check the contract for any restrictions on re-selling and be aware of tax implications like capital gains tax.)
In essence, off the plan purchases give buyers a chance to get in early in an area that is up and coming or in a development that might be highly valued upon completion.
Despite these benefits, buyers must balance them against the risks. Next, we'll look at the common risks and mistakes Melbourne buyers should watch out for with off the plan contracts.
Risks and Pitfalls of Off the Plan Contracts
While off the plan purchases can be rewarding, they come with significant risks. Being aware of these pitfalls is critical before you sign on the dotted line. Below are some common risks and mistakes to avoid:
Construction Delays
One of the most common issues is delay in completion. Developers often provide an estimated finish date, but many things (weather, supply issues, labour shortages, planning approval problems) can push this date back. It's not uncommon for projects to run months over schedule.
Your contract will likely include a sunset date (a deadline by which the project must be finished, often 18 months or more from contract date). Be prepared that your moving plans might need to adjust if there are delays.
Always check the sunset clause it should specify what happens if the project isn't completed by a certain date. In Victoria, if the plan of subdivision isn't registered by the agreed date (or the default 18 months), the buyer generally has the right to cancel the contract and get the deposit back. This offers some protection, but delays can still be frustrating and inconvenient, so plan with a time buffer in mind.
Changes to Plans or Inclusions
The finished product may differ from your expectations. When buying off the plan, you are relying on brochure illustrations and floorplan measurements. Minor variations are common for instance, the actual apartment size might vary within a small margin, or finishes might be slightly different if certain products become unavailable.
Developers usually reserve the right to make minor modifications. However, material changes (for example, removal of a promised facility or a significant reduction in size) may give you rights to withdraw from the contract depending on the terms.
Always read the specifications and inclusion list closely and understand what flexibility the developer has. It's wise to keep all marketing materials and contract schedules so you can hold the developer accountable for what was advertised. Don't assume every feature in the display suite is included – ensure everything is documented in the contract.
Market Fluctuations and Valuation Risks
Perhaps the biggest financial risk is that the property's market value at completion could be lower than the price you agreed to pay. Markets can soften due to economic changes, interest rate rises, or an oversupply of similar properties.
If property values decline during the construction period, you might end up paying more than the property is worth upon completion. This is not just an abstract concern – it has happened in Melbourne. For example, during a period of apartment oversupply, roughly one in ten off the plan apartment sales in Melbourne fell through as banks refused to approve full loans, leaving those buyers to forfeit their deposits.
Lenders only give final mortgage approval upon completion (when they can value the finished property), so if the valuation comes in lower than the purchase price, the bank may lend you less. Buyers then must somehow cover the shortfall or risk default.
If you cannot complete settlement, you could lose your 10% deposit and even face liability for the difference if the developer resells the property at a lower price. In short, you could lose tens of thousands of dollars.
To avoid this, be conservative with your budget: assume a scenario where the market dips and have a financial buffer. Speak to a mortgage broker about your borrowing capacity and how much wiggle room you have if interest rates change or valuations come in low. It may also be worth negotiating a clause (if the developer agrees, though many won't) that allows you to exit if the bank valuation is significantly less than the purchase price some contracts can include such a finance clause, but they are not common in hot markets.
Developer Solvency and Reputation
The success of an off the plan project hinges on the developer's ability to complete it. If the developer goes bust or runs into serious financial trouble, the project may be delayed indefinitely or canceled. In such cases, you should get your deposit back (since it should be held in trust), but you might lose the opportunity and time invested.
Even if the developer stays afloat, a developer with a poor track record might cut corners or deliver subpar quality. Avoid the mistake of ignoring the developer's background. Research their past projects, Did they finish on time? Do those buildings have good quality? A red flag is if the developer has a history of failed projects or legal disputes with buyers.
In Victoria, consumer protections have improved: your deposit by law must be held in a trust or controlled account (and cannot be more than 10% of the price), which protects your money if the developer fails to deliver. Nonetheless, no one wants the stress of a collapsed project.
Additionally, check if the builder (who may be a separate party) is reputable. In recent years there have been high profile builder collapses and defects in some apartment buildings. Picking a project from a trusted developer and builder is crucial to reduce these risks.
Limited Rights to Change Your Mind
Once you sign an off the plan contract and the cooling off period has passed, you are generally locked in until settlement, even if your circumstances change. Many off the plan contracts are unconditional they typically do not allow you to pull out if, for example, you simply rethink the purchase or fail to secure finance (aside from the early cooling off window).
If you do back out, you'll likely lose your deposit and could face additional penalties. Victoria does provide a statutory cooling off period of 3 business days for private sales of property (this applies to off the plan purchases as well, unless you signed within 3 days of an auction or meet other exceptions). The penalty for cooling off is small the seller can keep $100 or 0.2% of the purchase price (whichever is greater).
This means if you get very cold feet immediately, you have a brief window to cancel with minimal loss. However, after that, the contract is binding. Do not treat the contract lightly just because the settlement is far away. Before signing, be as certain as you would be if you were settling in 60 days.
Also, understand the contract's terms for any extensions or default: if you're late to settle, interest and penalties can apply. Failing to settle can even expose you to being sued for losses if the property is resold cheaper. The bottom line: it's a mistake to sign an off the plan contract without absolute commitment and a clear plan for financing.
Owners Corporation and Ongoing Costs
For apartments or townhouses in new developments, you will likely be part of an Owners Corporation (OC) (also known as a body corporate). This means you'll have to abide by the OC rules and pay ongoing fees for maintenance of common areas, building insurance, etc.
Many buyers focus on the purchase and forget about these future costs. New buildings can have significant owners' fees and sometimes special levies if unexpected expenses arise (for example, rectifying defects or upgrades to shared facilities).
When reviewing the contract, look for the Owners Corporation disclosure in the Section 32 or contract, which should include estimated fees and any initial liabilities. Don't overlook things like whether parking or storage is on a separate title, or if there are restrictions (many new apartments have rules about pet ownership, short-term letting, etc.). Being unaware of these can lead to dissatisfaction later.
To avoid this mistake, ensure you read the OC information and factor those fees into your budget. If the development has lavish amenities (gyms, pools), expect higher upkeep fees.
Quality and Defects
Since you can't inspect the property before buying (aside from maybe a display unit), there's a risk that the workmanship or materials may not meet your expectations. Minor cosmetic issues are almost inevitable in any new build, but occasionally there could be more serious defects (waterproofing issues, poor finishing, etc.).
Many off the plan contracts stipulate that buyers cannot delay settlement due to minor defects – instead, you note them at a pre-settlement inspection and the developer is given time to fix them (often within 90 days after settlement). Understand that you might have to settle and then chase up defect repairs.
It's important to know what warranty or defect liability period the developer provides. In Victoria, new residential builds are covered by statutory builder warranties (and insurance if the builder disappears) for major defects up to 6 to 7 years. Still, it can be a hassle to get things fixed.
Mitigation: Attend the pre-settlement inspection with a keen eye (and even consider bringing an independent inspector). Document any issues. Ensure the contract allows you to hold the builder accountable. High profile cases of defects (like cladding issues or structural problems) have made headlines, so choose developments with good quality control. Don't assume a brand new property will be perfect on day one be prepared to do some follow up.
As we see, off the plan purchases carry risks from multiple angles timing, financial, legal, and quality. However, Victoria's legal landscape in 2025 has evolved to give buyers more protection than in the past. Next, we'll discuss some of those protections and what you should look for in your contract.
Legal Protections for Off the Plan Buyers in Victoria (2025)
Buying off the plan in Victoria has become safer over the years due to legislative reforms. It's important to be aware of these buyer protections and ensure your contract complies with current laws:
Deposit Safety
In Victoria, the Sale of Land Act 1962 (as amended) limits deposits on off the plan contracts to a maximum of 10% of the purchase price. This is good news for buyers you should never be asked to pay more than 10% upfront.
Moreover, that deposit must be held in a trust account (such as a solicitor's trust or estate agent's trust) or a controlled money account until settlement. The deposit funds cannot be released to the developer until you take ownership. This means if something goes wrong (project doesn't proceed, or the developer goes under), your deposit is safeguarded and should be returned to you.
Always ensure the contract specifies the trust account details where your deposit will be held. It's a red flag if a developer tries to take the deposit directly or asks you to release it early that would be highly irregular in Victoria and not in your interest.
By law, if the development does not reach completion by the agreed sunset date (or the default 18 months if no date specified), you as the buyer can cancel the contract and get your full deposit back. This protects you from endless delays.
Sunset Clause Reforms
In the past, sunset clauses (the contract's built-in deadline for completion) were sometimes misused by developers. If property values rose significantly, an unscrupulous developer could deliberately delay a project, invoke the sunset clause to cancel the contract, refund the deposits, and then re-sell the property at higher prices leaving the original buyers missing out on the market gains.
To prevent this, Victoria introduced laws to curb unjust cancellations. Since 2020, a developer (vendor) cannot rescind an off the plan contract under a sunset clause without the purchaser's written consent or a Supreme Court order.
In other words, the developer can't just pull the plug on a contract at the sunset date to their advantage you have to agree, or a court must be convinced it's justified.
In November 2023, further reforms were introduced to strengthen these protections, particularly for land subdivision sales. The new rules (under the Sale of Land Amendment and related legislation) essentially ensure that buyers are in control of any sunset clause termination for residential off the plan deals.
These laws apply to contracts on foot as of late 2023 and new ones going forward. For you as a 2025 buyer, this means you can have greater confidence that a developer can't use a technicality to cancel your purchase without your say-so.
Always check the sunset date in your contract and the terms around it. If you see anything that seems to give the developer excessive rights to terminate, raise it with your conveyancer it may be overridden by the law, or it may be something to negotiate.
Contract Disclosure Requirements
Victorian law mandates certain disclosures and warnings in off the plan contracts. For example, an off the plan contract must include a conspicuous notice alerting the buyer that a significant amount of time may pass before settlement and that the property's value may change in the meantime.
These statements serve to ensure buyers are aware of the inherent uncertainty in off the plan purchases. The contract (or attached Section 32) also has to disclose details like the proposed plan of subdivision, any covenants, easements or restrictions on title, the planning permit details for the development, and whether an owners corporation will exist (with estimated fees).
Read these disclosures carefully. They are there for your protection, revealing information you wouldn't otherwise know until the property is built.
Finance Clauses (or Lack Thereof)
Understand that most off the plan contracts in Victoria are not subject to finance or other typical conditions (unlike an established home purchase where you might have a finance or building inspection clause). Developers expect buyers to be unconditional.
It's a tough reality you're committing to buy regardless of whether a bank ultimately approves your loan in one or two years. Some protections exist externally (e.g. if you genuinely cannot settle, you lose deposit but at least can exit, though with potential further loss as discussed).
Because of this, it's imperative to arrange your finances and loan pre-approval with the future in mind. Talk to your lender about how long pre-approvals last and the process as completion nears. It's wise to stay in touch with your mortgage broker throughout construction, especially if interest rates are changing.
While not a "legal protection" per se, being proactive with finance is your personal protection against default.
Builder Warranty Insurance
In Victoria, any domestic building work over $16,000 requires the builder to take out Domestic Building Insurance (also known as Builder's Warranty Insurance). This covers the purchaser for defects or incomplete work if the builder dies, disappears, or becomes insolvent, for up to 6 years after completion.
If you're buying an off the plan house and land package, ensure the contract includes evidence that this insurance will be provided at settlement (for the house component). If it's an apartment, the insurance is typically taken out for the whole development.
Additionally, the law provides statutory warranties (even without the insurance) that the builder must build to a proper standard. Knowing these protections can give you confidence that not all risk falls on you the builder has legal obligations to deliver a quality product, and recourse exists if they fail in certain catastrophic ways.
However, note that pursuing defect rectifications can be a process, and minor issues will usually have to be fixed by the developer post-settlement rather than being covered by insurance.
In summary, Victorian legislation in 2025 is quite buyer-friendly for off the plan sales: your deposit is protected, sunset clauses can't be abused against you, and there are clear disclosure requirements. Always have your legal adviser confirm that the contract aligns with these laws. A reputable developer will already incorporate these rules, but it's good to double check.
The Off the Plan Conveyancing Process in a Nutshell
For those new to off the plan purchases, here's a brief overview of the process from signing to settlement:
Choosing a Property and Signing the Contract
After selecting your desired unit or lot (often from plans or a display suite), you'll pay an initial holding deposit (which becomes part of the 10%) and sign the contract of sale. The contract packet will include the Section 32 vendor's statement.
Before signing, engage a conveyancer or property lawyer to review these documents. They will explain clauses, advise on any unusual terms, and possibly negotiate amendments for you.
Once signed, you'll pay the balance of the 10% deposit (if you only paid a smaller holding deposit initially). This deposit is then held in trust (e.g. by the developer's solicitor or an estate agent's trust account).
Cooling Off and Contract Finalisation
In Victoria, after signing, you have a 3 day cooling-off period (unless waived or an exception applies). If you change your mind in that time, you can withdraw with minimal penalty.
Assuming you proceed, the contract becomes binding. The seller will counter-sign and you'll get a copy of the fully signed contract. From here, you are now locked in to purchase, subject to the contract's terms (and the project being completed).
During Construction Period
This phase can feel like "not much happens" from the buyer's perspective, but it's a crucial waiting period. The developer will be working on obtaining permits, construction, and eventually registration of the plan of subdivision. You should use this time wisely:
Finance Preparation: Even if your loan is pre-approved, remember that formal approval will happen closer to settlement. Keep saving money and avoid taking on new debts. Closer to completion, check in with your lender to update your financial info and make sure you're on track for the loan you'll need.
Monitor Progress and Communications: The developer may send periodic updates or newsletters about construction progress. They might also notify you of any changes or amendments to the design or schedule. Significant changes might come as a formal contract variation have your conveyancer review any such changes. If the project is running late and approaching the sunset date, discuss with your conveyancer your options. (You might consent to extend the sunset date if you're happy to wait, or you might choose to exit if given the chance and if the situation makes you uneasy).
Plan for Moving: If you're an owner occupier, start thinking about your moving timeline, but stay flexible. If you have a home to sell, coordinate the timing with advice from both your conveyancer and perhaps a financial adviser you don't want to be caught having to settle on the new property before you have funds from selling your old one, unless you have bridging finance.
Pre-Settlement and Inspection
As the building nears completion, the developer will notify you (and your conveyancer) of the expected registration and settlement timeframe. Once the plan of subdivision is registered (creating the new titles for each property), the contract will stipulate how soon settlement must occur often within 10 to 14 days.
Before settlement, you'll typically get an opportunity to inspect the finished property (pre-settlement inspection). This is when you check that the property is delivered as promised. Take your contract's list of inclusions and plans with you and note any defects or discrepancies.
You usually cannot refuse to settle over minor defects, but you should document them for rectification. If something is seriously wrong (e.g. a major variation from the plan), immediately inform your conveyancer there may be legal remedies before settlement, but time will be short.
Settlement Day
Settlement for an off the plan property works much like any property: your bank (if you have a loan) and your conveyancer will arrange to transfer the remaining funds to the seller, and in exchange, the property's title is transferred to your name. You will sign loan documents and other papers in advance to be ready.
At settlement, you also pay any adjusted amounts for council rates, owners corp fees, etc., up to the settlement date. Once settlement is completed, you can collect the keys to your brand new home! The deposit held in trust is released to the developer at this point. Congratulations you are now the owner, even if some finishing touches or defect fixes are still ongoing.
Post-Settlement
After you take possession, keep an eye on any outstanding issues. The developer might have a period in which they promise to fix noted defects. Follow up in writing to ensure those are addressed. Register with the owners corporation, if applicable, and start enjoying your new property.
Your conveyancer's role essentially concludes at settlement, but they can still assist if any post-settlement issues arise with the title or contract compliance.
Throughout this process, communication with your conveyancer and lender is key. Off the plan purchases require patience and diligence. Unlike a quick settlement, you'll be in limbo for a while, but staying organised will make the eventual handover smooth.
Tips for Melbourne Buyers: How to Safely Navigate Off the Plan Purchases
Buying off the plan can be complex, but here are some practical tips and advice to help Melbourne buyers avoid common mistakes:
Research the Developer and Builder
Before you sign, investigate who you're buying from. Look up the developer's past projects around Melbourne or Australia. Did those developments finish on time? Visit them if possible do they appear well built, and are past buyers happy?
Also, research the construction company (builder) if named. A strong developer builder team is a positive sign; a history of delays or disputes is a warning sign. Don't hesitate to ask the sales agent about the developer's track record. Reputable developers often have plenty of information available online, including reviews or news articles.
Have the Contract (and Section 32) Professionally Reviewed
This cannot be stressed enough engage a qualified conveyancer or property lawyer to review the contract before you sign. Off the plan contracts can be lengthy and written in favour of the developer. A professional will spot any unfair terms or unusual clauses. They will explain your rights and obligations in plain English.
For example, they can point out the exact conditions of the sunset clause, default penalties, or clauses about changes to the property. They will also review the Section 32 statement for any hidden issues (like an easement on the title, proposed owners corporation rules, or special conditions about design guidelines if it's a land purchase).
Many conveyancers offer a free initial contract review for prospective buyers. Taking advantage of this can save you from costly mistakes or surprises down the track. Remember, once you sign, you're committed. It's worth a short delay to have experts check everything. As a Melbourne buyer, ensure your conveyancer is familiar with Victorian laws and off the plan norms.
Understand All Costs (Now and at Settlement)
When budgeting, factor in more than just the purchase price. Ask about additional costs at settlement for example, whether there are adjustments for council rates, water rates, owners corporation fees, or land tax.
Off the plan buyers in Victoria may sometimes have to reimburse the developer for things like council rates from the start of the rating year to settlement. Also, consider stamp duty: even with concessions, there will likely be some duty to pay unless you're exempt. Use the State Revenue Office calculators or have your conveyancer estimate the duty so you can save up for it.
If you're an investor, remember you'll start paying owners corp fees and other outgoings once you own the property, even if it's not rented out yet. Don't overstretch your budget. A common mistake is assuming the 10% deposit is the only cash needed until settlement – in reality, you should also be saving for duties and other closing costs.
Secure Your Financing Early
While final loan approval comes at completion, start the financing process early. Speak to a mortgage broker or your bank to get a sense of how much you can borrow and what deposit they require. It's wise to obtain a pre-approval for the loan amount, even though it will be conditional.
This will give you confidence that you can likely get the mortgage when the time comes. Keep in mind pre-approvals can expire (often after 3-6 months), so you may need to refresh it if construction is long. Stay in touch with your lender throughout – if interest rates rise significantly (which can happen within a year or two), it could affect your borrowing power. Being proactive can help you avoid the nasty surprise of not qualifying for a loan when your property is ready.
Plan for Possible Valuation Drops
We mentioned this risk above the appraisal of the completed property might be less than the purchase price. To protect yourself, have a financial buffer. This might mean saving more than you think you'll need, or lining up alternate funds (family support, etc.) just in case.
Another tip: monitor the market for similar properties as your project is being built. If you notice prices in the area dropping or lots of new apartments coming up for sale below your price, you might need to adjust your expectations and plan to cover a gap.
It's not the situation anyone wants, but being prepared is better than being caught off guard. On the flip side, if the market is rising, still proceed cautiously and stick to your financial plan don't assume you can borrow more later just because the property might be worth more. Lenders can tighten criteria at any time.
Keep Documents and Correspondence
Maintain a file (digital or physical) of all documentation: the signed contract, all annexures (floor plans, schedules of finishes, any brochures given to you that have promises), and any updates from the developer.
If there are any disputes later (for example, if something in the finished property isn't what you expected), having the documentation of what was promised is invaluable. Also, keep records of any emails or letters. Treat your off the plan purchase somewhat like a project you are managing keep everything organised.
Check If You Can Inspect During Construction
Typically, buyers aren't allowed on a construction site for safety reasons. However, for townhouse or land and build projects, sometimes developers hold "walk-throughs" at certain stages for buyers. If the opportunity arises, take it.
Seeing the construction progress can be reassuring and also lets you spot anything glaringly wrong. In apartment blocks, you usually wait until completion, but you might be able to view a display or a finished prototype unit if they offer one. Some developers also provide online portals with progress photos make use of these to stay informed.
Be Ready for Settlement
As the forecasted completion date approaches, start preparing for settlement well in advance. This means:
- Confirm your loan (provide any updated documents the bank needs)
- Have your deposit funds + remaining funds accessible (if your contribution is coming from savings or the sale of another property, ensure the timing aligns)
- Instruct your conveyancer to start coordinating with the seller's side
The developer will usually give a notice when the plan is lodged for registration, and another when registration occurs (which triggers settlement). Sometimes the notice period is quite short. You don't want to be scrambling last minute for paperwork or funds. Aim to be "settlement-ready" a few weeks ahead.
Also, book in your pre-settlement inspection as soon as you're allowed, so that any issues can be communicated quickly.
Don't Skip on Insurance
Once settlement happens, the property becomes your responsibility. Arrange building insurance effective from the settlement date (for apartments, the building insurance is typically covered by the owners corporation, but if you're buying a house/townhouse or land to build a house, you need your own building insurance from settlement).
If an apartment, you may still want contents insurance (which can also cover things like kitchen cabinets, etc., in strata situations). While the developer usually has construction insurance up to handover, you need to be covered the moment you take possession.
Use Professionals and Ask Questions
Aside from conveyancers, use other professionals to your advantage. For instance, if it's a large investment, your accountant might advise on the best way to purchase (individual name, joint, or via a SMSF or trust, etc., though for residential it's usually personal).
If you're a first home buyer, see if you qualify for any home buyer schemes (as of 2025, there are federal schemes like the First Home Guarantee that help avoid LMI, etc.).
Ask your conveyancer every question you're unsure about no question is "dumb" when you're dealing with a complex legal purchase. It's better to be clear on, say, what "registered plan" means or how a "sunset clause" works, than to remain confused and possibly make a mistake.
By assembling a good team (conveyancer, mortgage broker, etc.) you will navigate the process much more smoothly.
Finally, always trust your instincts. If something about a deal doesn't feel right be it high-pressure sales tactics or terms that seem too risky take a step back. It's easier to not sign a problematic contract than to unwind one later.
Conclusion
Buying off the plan in Melbourne can be an exciting way to secure a new home or investment, but it requires careful navigation of contracts and risks. In 2025, buyers have more protections at their disposal and potential incentives like stamp duty concessions, yet the onus is still on you to do your due diligence.
By understanding the process, being aware of common pitfalls (and how to avoid them), and getting the right professional advice, you can make an informed decision and successfully ride the journey from initial deposit to receiving the keys.
If you're considering an off the plan purchase in Victoria, don't go it alone. The team at Pearson Chambers Conveyancing can provide expert guidance every step of the way. We offer a free Section 32 contract review, where we scrutinise the contract and vendor's statement to ensure your interests are protected. Our goal is to help you avoid costly mistakes and give you peace of mind in your property transaction.
For personalised advice or to book your free contract review, contact Pearson Chambers Conveyancing today:
Phone: 03 9969 2405