OFF-THE-PLAN CONVEYANCING SPECIALISTS SYDNEY

Most off-the-plan contracts include clauses that allow the developer to alter the original plans. The extent of these changes can vary significantly, making it important to have a solicitor review the terms before signing. Some contracts permit buyers to withdraw if changes go beyond minor modifications, while others only allow termination if the variation substantially reduces the property’s value.

It’s also important to understand your rights if changes occur. Many contracts only give buyers the option to rescind, rather than seek a price reduction. This can be a difficult choice, especially if property values have risen since signing, leaving limited alternatives at the same price point.

Where possible, be specific about what changes are acceptable. Some contracts include provisions stating that a size reduction of more than 5% allows the buyer to withdraw. You should also limit the developer’s ability to make changes at their discretion. While some modifications may be necessary due to council or regulatory requirements, others may be made purely for financial gain. Reviewing these terms carefully can help prevent unwanted surprises down the track.

For most residential building projects above a certain value, Home Warranty Insurance provides protection in case of defects or incomplete work. However, there are key exemptions—owner-builders and multi-storey developments are often not covered.

Before committing to an off-the-plan purchase, confirm whether warranty insurance applies and what avenues of recourse are available if defects or structural issues arise after settlement. Knowing your rights in advance can help you avoid unexpected complications.

Many off-the-plan contracts require buyers to settle the purchase even if minor defects are present. The terms surrounding defect rectifications can vary widely, but in most cases, the vendor provides a warranty to fix issues within a set timeframe after settlement.

It’s advisable to negotiate the longest possible warranty period, as defects may not become apparent immediately. Warranty periods typically range from 30 to 90 days, with longer timeframes offering better protection. Be wary of contracts that limit you to submitting a defect list only once, as additional issues may surface after the initial inspection. Reviewing these clauses carefully with your solicitor can help ensure you have the right protections in place.

Disputes can arise in off-the-plan purchases, particularly over issues like substitutions of fixtures or variations to the final build. Including informal dispute resolution clauses in the contract can provide a practical alternative to costly and time-consuming litigation.

It is often in the best interests of both parties to agree on a process where an independent third party can assess disputes and issue binding decisions. This approach can help resolve disagreements efficiently while avoiding the uncertainty of legal proceedings. Reviewing these provisions with a solicitor before signing can help safeguard your rights if a dispute arises.

Many off-the-plan contracts include provisions requiring buyers to cover certain costs incurred by the vendor. While standard adjustments for Council rates, water rates, and insurance are reasonable, some contracts go further, attempting to pass on additional expenses such as Land Tax.

Depending on your property ownership status, these charges may be unfair, as they shift the vendor’s tax liabilities onto the purchaser—costs that would not otherwise apply. Before signing, it’s important to review these clauses carefully and seek legal advice to determine whether the proposed adjustments are reasonable.