Buying off the plan in NSW
NSW overhauled its off-the-plan rules from 1 December 2019, and they differ from Victoria's in ways that matter. We act for off-the-plan buyers in Sydney and across NSW, handling everything by phone, email and electronic settlement from our Melbourne office.
What you receive before you sign
The developer must attach a disclosure statement to the contract, setting out key information such as the sunset date and other conditions, along with a draft plan prepared by a registered surveyor, a proposed schedule of finishes and draft by-laws. These documents describe what you're buying, so they're the benchmark if something changes later.
Cooling-off
An off-the-plan buyer has a 10 business day cooling-off period after exchange, twice the usual five days. If you rescind, you forfeit 0.25% of the price. There's no cooling-off if you buy at auction, and the period can be waived if your solicitor gives the developer a section 66W certificate. See our cooling-off guide.
Your deposit
Deposits and instalments paid under an off-the-plan contract must be held in a trust or controlled money account until settlement. They can't be released to the developer before then.
Changes to what you're buying
If a material particular changes, for example the plan, by-laws, schedule of finishes, or easements and covenants, the developer must notify you. You have 14 days to act. If you wouldn't have signed had you known, and you're materially prejudiced, you can rescind and get your deposit back. Or you can settle and claim compensation of up to 2% of the price. The developer must give you the registered plan at least 21 days before settlement. Our guide to changes to the plans compares the states.
Sunset clauses
A developer needs your consent to end the contract under a sunset clause. Without it, the developer must apply to the NSW Supreme Court. See our guide to sunset clauses.
Transfer duty
Duty in NSW is collected by Revenue NSW. It's usually due within three months of signing the contract, or at settlement if that's earlier. If you're buying off the plan to live in, you may be able to defer payment until the earliest of settlement, 15 months after signing, or an assignment of the contract. The deferral isn't available for investment properties, you must meet the eligibility rules, and your legal representative has to arrange it. First home buyers may also qualify for an exemption or concession.
Before you exchange
Read the disclosure statement with the contract, not after it. Check the sunset date and whether the developer can extend it, what the developer may change without notice, how large the deposit is and whether a deposit bond is accepted, and whether the contract has a finance clause. If the answers aren't clear, ask before you exchange: once the cooling-off period ends, your bargaining power mostly goes with it.
Settlement
We prepare the settlement documents, deal with the developer's solicitors and your lender, and settle electronically. You don't need to be in Sydney or Melbourne.