Off the plan

Buying off the plan is when you buy a property based on the designs and plans provided by the developer before it is built. Most developers have a range of house designs you can choose from and you may be able to choose the finishing touches, such as wall tiles, flooring, paint colours and appliances.

Developers often sell properties off the plan in order to fund construction. A minimum number of properties may need to be sold before building on your property will begin.

A deposit is normally paid when the contract has been signed with the balance due when the property has been completed.

Buying a property off the plan can be cheaper than buying an existing house, but there are risks to consider.

Things to consider

Buying a property is the biggest purchase most people will make. Research the property and identify your needs before you decide.

Building a house can take a long time and there are many factors that could cause delays. Although the developer can give you a time frame for the completion of the property, this could change. In some cases, the development may not go ahead at all if, for example, the developer becomes bankrupt.

You should examine all the designs and plans carefully. Ask to see the land your house will be built on and consider the size, location and aspect. The designs may change even after the contract has been signed, for example, so that development approval can be given.

If the property will be part of a group, ask if it will be on a strata, community or Torrens title. If it's on a strata or community title you should check the community or strata group's details, regulations, by-laws and articles as these can affect how you can use the property, for instance, no pets allowed.

It is a good idea to check the quality of a developer's work. You can ask the developer to provide references or contact details of people who have bought properties from them previously.

The contract

It is strongly recommended that you seek independent, professional legal advice before you sign a contract, as it will become legally binding once you and the developer sign it. You should read all the terms and conditions carefully and ask for clarification of anything you don't understand. There may be certain conditions included in the contract that can affect your rights. If you're not happy with a condition you can ask the developer to change it, but they can refuse.

Before you sign the contract you should ask the developer:

  • if you will be able to make any changes to the finishes such as paint colours, appliances or flooring
  • what rights you have if the house isn't completed in time or at all and what would happen to the deposit
  • what changes you or the developer could make to the house designs after the contract is signed
  • who would be responsible for repairing both minor and major defects after the house has been completed, what warranties are in place and who are they with
  • what are your rights if development approval isn't given or the site becomes unsuitable
  • if you will be able to visit the construction site while your house is being built
  • how, and under what conditions, can either you or the developer cancel the contract
  • if you will be asked to pay for anything other than the deposit and the balance for the house, such as costs for building materials.

Always keep a copy of:

  • any document you sign
  • any promotional material used by the developer, such as leaflets
  • the house designs and plans
  • any letters sent to you by the developer or associated with the construction.

If something goes wrong

If you believe that your developer has breached the contract you can seek independent legal advice to determine what your rights are. You can also contact Consumer and Business Services for advice and information on what you can do.

Contact CBS

Online: Contact CBS

Phone131 882

In person:
91 Grenfell Street
Adelaide

Post:
GPO Box 1719
Adelaide SA 5001


Related information

Downloads

Its about the house (3.6 MB PDF)

For an alternative version of these documents contact Consumer and Business Services.


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Page last updated 16 October 2019

Provided by:
Attorney-General's Department
URL:
https://www.sa.gov.au/topics/housing/buying-a-home/buying-property/off-the-plan
Last Updated:
16/10/19
Printed on:
20/11/19
Copyright statement:
SA.GOV.AU is licensed under a Creative Commons Attribution 4.0 Licence. © Copyright 2019
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