Buying off the plan in Victoria
Victoria has its own rules for off-the-plan sales, most of them in the Sale of Land Act 1962. We apply them for buyers of apartments, townhouses and land in new estates across Melbourne, from inner-city towers to growth-area subdivisions.
The contract and the vendor statement
You'll receive a contract of sale and a vendor statement (the Section 32), with the proposed plan of subdivision, owners corporation details and the developer's special conditions. The special conditions matter most. They set the sunset date, the developer's right to vary the plans, how soon you must settle after registration, and which costs are passed on to you.
Cooling-off
You have three clear business days after signing to cool off by written notice, and the developer may keep $100 or 0.2% of the price, whichever is more. There's no cooling-off if you buy at a publicly advertised auction or within three clear business days either side of it, or if the buyer is a company. Our cooling-off guide has the detail.
Your deposit
The deposit on an off-the-plan contract can't be more than 10% of the price, and the contract must tell you that you can negotiate it. It must be paid to the developer's lawyer, conveyancer or licensed estate agent and held on trust for you until the plan of subdivision is registered. Some developers accept a deposit bond instead of cash.
Changes, delays and possession
If the plan of subdivision is amended before registration, the developer must tell you within 14 days, and you can rescind within 14 days if the change materially affects your lot. You can't be required to take possession before the plan is registered, and for an apartment the developer can't let you move in before an occupancy permit is issued. If the plan isn't registered within 18 months, or the period your contract sets, you can rescind. A developer who wants to end a residential contract under a sunset clause must give you at least 28 days' written notice and get your consent, or get an order from the Supreme Court. See our guides to changes to the plans and sunset clauses.
Stamp duty
Duty is administered by the State Revenue Office. For apartments, units and townhouses in a strata subdivision, a temporary off-the-plan concession applies to contracts signed from 21 October 2024 and before 21 April 2027. It's open to all buyers, including investors, companies and trusts, with no price cap: construction costs incurred on or after the contract date are deducted from the value that duty is charged on. It doesn't reduce foreign purchaser additional duty. Other off-the-plan concessions have their own eligibility tests, so we check which applies before you sign. See when you pay stamp duty off the plan.
Settlement
Once the plan is registered and the building is finished, the developer gives notice and settlement follows on the date the contract sets. We check the registered plan against what you bought, remind you to inspect, work with your lender, and settle electronically.