Your comprehensive Q&A Guide to buying off-the-plan in QLD
General Questions
Q: What does “buying off the plan” mean?
A: It means purchasing a property (usually an apartment or townhouse, sometimes a house-and-land package) before it’s built, based on plans, renders, and a contract of sale.
Q: Why do people buy off the plan?
A: Buyers are often attracted by modern design, lower maintenance, potential stamp duty savings, choice of finishes, and securing a property at today’s prices for settlement in the future.
Legal Questions
Q: What legal protections do buyers have in Queensland?
A: The QLD Government provides protections under the Body Corporate and Community Management Act 1997 and Land Sales Act 1984. These include disclosure obligations, cooling-off periods, and limits on sunset clauses.
Q: What is a disclosure statement, and why is it important?
A: Developers must provide a disclosure statement outlining lot details, by-laws, plans, finishes, and projected levies. Always review it carefully with a lawyer to ensure what you’re buying is clear.
Q: What is a “sunset clause”?
A: A clause that allows the contract to be cancelled if the project is not completed by a certain date.
Q: What is a “sunrise clause”?
A: A clause that outlines when a building must commence construction by. If construction does not commence by this date, the Buyer may be able to terminate their contract without penalty.
Q: Can the developer change the property after I sign the contract?
A: Yes, but only within certain limits. Variations must not materially prejudice the buyer. Always have your lawyer check clauses allowing “minor” changes—these can sometimes be broad.
Q: Do I get a cooling-off period?
A: Yes, QLD contracts generally provide a 5-business-day cooling-off period unless waived. If you terminate, you may lose 0.25% of the purchase price.
Financial Questions
Q: How much deposit do I need?
A: Typically, 10%, held in a trust account until settlement. Some developers accept smaller deposits.
Q: When do I pay the balance?
A: At settlement—usually once the building is complete and titles are registered.
Q: Do I still pay stamp duty?
A: Yes. However, in some cases, QLD buyers may access first-home buyer concessions, and duty is usually calculated on the contract price (not post-completion market value).
Q: What happens if the bank valuation is lower than my contract price?
A: You may need to cover the shortfall yourself. This is one of the biggest risks of off-the-plan buying—always keep a financial buffer.
Q: Are there tax benefits?
A: Investors may benefit from depreciation allowances on new builds. Always seek accountant advice specific to your situation.
Risks & Considerations
Q: What are the main risks of buying off the plan?
A:
Project delays or cancellations
Market downturn between contract and settlement
Valuations coming in low
Variations to plans or finishes
Developer or builder insolvency
Q: How do I reduce risk?
A:
Research the developer and builder’s track record
Use a lawyer experienced in off-the-plan contracts
Understand exactly what’s included in finishes
Have finance pre-approval and a contingency buffer
Q: What if the developer goes broke?
A: Your deposit should be protected in a trust account, but the project may be delayed or not completed. Researching reputable developers is critical.
Practical Questions
Q: Can I choose my finishes and upgrades?
A: Sometimes yes, depending on the stage of the build. Some developers offer a choice of colour schemes or upgrade packages.
Q: When will I know the final body corporate fees?
A: Initial estimates are in the disclosure statement, but actual levies can vary once the building is complete.
Q: Can I on-sell before completion?
A: This depends on the contract. Some developers restrict re-sales before settlement. Ask your lawyer to check the clause.
Q: Will the property look like the display suite or render?
A: Not always. Marketing material is indicative only. Always rely on the detailed specifications in the contract, not glossy brochures.
Settlement & Handover
Q: How do I prepare for settlement?
A:
Confirm finance with your bank
Arrange a pre-settlement inspection (check your contract for the terms)
Check inclusions match the contract
Ensure insurances and legal checks are complete
Q: Do I get a defect period after handover?
A: Yes. Builders must comply with statutory warranties under QLD law. Minor defects can be reported within 12 months; structural defects are covered for longer.
Choosing Advisors
Q: Do I need a lawyer or conveyancer?
A: Yes—ideally a solicitor with off-the-plan experience in Queensland. They’ll review disclosure, sunset clauses, variation clauses, and ensure your rights are protected.
Q: Do I need a buyer’s agent?
A: Not essential, but a trusted agent can help compare developments, research developers, and negotiate.
