First Home Buyer? Here’s What You Need to Know About Off The Plan Conveyancing

Buying your first property is exciting—but if you’re considering buying off the plan, there’s a whole extra layer of legal detail you need to be aware of.

Off the plan conveyancing isn’t like a regular property purchase. It involves contracts based on future developments, longer settlement periods, and unique risks that can catch first-time buyers off guard.

In this post, we’ll break down everything you need to know about off the plan conveyancing, especially if you’re buying your first home.

From contract traps to sunset clauses, we’ll help you navigate the process with confidence.

Quick Overview: At a Glance

Off the plan conveyancing refers to the legal process of purchasing a property that hasn’t been built yet.

You’re committing to buy a home based on plans, drawings, and expectations, not a finished product.

For first home buyers, it can be an affordable entry into the market—but it also comes with complex legal documents and potential delays.

Here’s what you need to know:

• Contracts are often long and detailed—get them reviewed professionally.
• Completion and handover dates aren’t always guaranteed.
• You may face changes in the final design or size of the property.
• Certain clauses (like sunset clauses) can affect your legal rights.

Want to dive deeper? Keep reading for a complete guide to protect your first big investment.

Understanding Off The Plan Conveyancing

What Does “Off The Plan” Mean?

You’re essentially buying a promise. The property doesn’t physically exist yet—it’s a future build.

You’ll sign a contract now, pay a deposit, and settle once construction is complete (often in 12–36 months).

Why First Home Buyers Choose It

• Stamp duty savings: Many states offer concessions for off the plan purchases.
• Lower entry price: You lock in today’s price, even if the market rises.
• Time to save: The gap between exchange and settlement gives you more time to boost your finances.

Key Risks & Legal Traps to Watch Out For

1. Sunset Clauses

These clauses set a final date for the build to be completed. But be cautious—developers may cancel the contract under this clause if the project is delayed, potentially reselling the unit for a higher price.

Pro Tip: Choose a contract that limits the developer’s ability to terminate under the sunset clause. Your conveyancer can negotiate this.

2. Contract Variations

Plans and finishes may change. That balcony you saw in the brochure? It might end up smaller—or gone.

Ensure the contract limits permissible changes.

Ask about design flexibility and size tolerances.

3. Finance Challenges

Banks often won't lend until the property is nearly complete. If your financial situation changes, or if the market drops, you might struggle to secure a loan at settlement.

Quick Guide: Buying Off The Plan as a First Home Buyer

You're Dreaming of Your First Home, But…

It’s still under construction. You love the location, price, and design—but you're not sure what you’re actually locking yourself into.

Common Challenges:

• What if the finished product doesn’t match the brochure?
• Can the developer cancel the deal later on?
• What if my finances change by the time it’s ready?

Here’s How to Protect Yourself:

1. Get Legal Advice Early: Engage a conveyancer or solicitor who specialises in off the plan contracts. They’ll review key terms and protect your rights.

2. Understand Your Timeline: Be clear on expected settlement dates, and know the range of possible delays. Have flexibility built into your plans.

3. Check for Risk Clauses: Pay close attention to sunset clauses, default penalties, and variations. Push back on unfair terms before signing.

4. Plan for Financial Movement: Your borrowing capacity might shift between now and settlement. Get pre-approval, save aggressively, and monitor your credit.

Why It Works:

 By preparing ahead and having a solid legal safety net, first home buyers can confidently take advantage of the benefits of off the plan buying—without falling into costly traps.

Need help reviewing an off the plan contract? Reach out to a local conveyancer before you sign.

FAQs: First Home Buyers & Off The Plan Conveyancing

Q: Can I use the First Home Owner Grant on an off the plan property?

Yes. In most states, if you meet the criteria (price thresholds, occupancy timelines), you can access the First Home Owner Grant—even if the property is still under construction.

Q: What happens if the project is delayed or cancelled?

Delays are common. If the developer cancels the contract under a sunset clause, you’ll typically receive your deposit back, but not compensation for lost time or opportunities. Always check how the sunset clause is worded.

Q: Should I use the developer’s recommended conveyancer?

It’s best to use your own independent conveyancer—one who is focused solely on your interests. Avoid any conflict of interest.

Q: Do I still need a building inspection if it’s a new build?

Yes. You can arrange a defects inspection or pre-settlement inspection to ensure the property matches the agreed specifications and finishes.

Conclusion

Buying off the plan can be an incredible opportunity for first home buyers—but it comes with legal complexities you can’t afford to ignore.

From contract reviews to protecting yourself against delays or unexpected variations, having the right conveyancer on your side makes all the difference.

If you're planning to take your first step into the property market, make sure it’s a confident one.

Arm yourself with the right knowledge, and don’t sign anything without a legal review. The dream of homeownership is real—and with the right guidance, it’s within your reach.