Off-the-Plan Sales in Australia: Complete Presales Requirements Guide

Off-the-plan sales typically represent the cornerstone of Australian property development finance, yet the landscape has transformed considerably since 2017. Major banks now generally require 100–120% debt cover in qualifying presales—roughly double the pre-GFC requirement of 50–60%—while regulatory reforms have fundamentally reshaped sunset clauses, deposit handling, and disclosure obligations across every state. This guide explores the complete regulatory framework, financing requirements, and practical strategies developers may need to successfully execute off-the-plan campaigns in the current market.

The housing supply challenge has created both urgency and opportunity. Australia may face a projected shortfall of nearly 400,000 dwellings by 2029 against the National Housing Accord’s 1.2 million target, with completions per capita reportedly at 40-year lows. Yet developers often confront a paradox: unprecedented demand coincides with tightening credit policies, construction cost increases of approximately 30% since COVID, and thousands of construction industry insolvencies over recent years. Understanding the intricate requirements for presales and off-the-plan transactions is now generally considered mission-critical for development success.

How off-the-plan sales work and why they matter

Off-the-plan sales typically involve contractual agreements where developers commit to deliver property at an agreed price before the building is constructed or title is registered. Purchasers generally buy based on plans, specifications, and renders rather than finished product, with settlement usually occurring upon plan registration and occupation certificate issuance—typically 12–36 months after contract exchange.

The standard transaction tends to follow a well-defined sequence. Developers first prepare comprehensive disclosure documentation including draft plans from registered surveyors, schedules of finishes, draft by-laws (for strata), and Section 88B instruments for easements. Trust account arrangements must generally be established before any deposits can be received. Sales campaigns typically launch through display suites, digital marketing, and expression of interest processes, with contracts exchanged upon buyer commitment and deposits—commonly 10%—paid into trust accounts.

For developers, presales generally serve three essential functions: proving market demand to justify construction commencement, satisfying lender requirements for development finance approval, and de-risking projects by securing contracted revenue. For buyers, off-the-plan purchases may lock in current prices, provide extended timeframes to arrange finance, and often offer first-mover advantages on location selection within developments.

The contract structure differs materially from established property sales. Standard Law Society contracts are typically modified with special conditions covering sunset clauses, variation rights, measurement tolerances (commonly around 5%), material substitution provisions, and settlement triggers tied to plan registration and occupation certificates. Disclosure requirements tend to be far more extensive, with NSW mandating Section 66ZM disclosure statements containing draft plans, by-laws, management statements, and all instruments affecting title.

What lenders typically require before approving development finance

The financing landscape has bifurcated sharply between major banks and non-bank lenders. APRA clarified in February 2025 that its 2017 observation about 100% presales was an industry practice description rather than a regulatory requirement, yet major banks generally continue demanding conservative thresholds while non-bank lenders have captured significant market share by offering more flexible terms.

Major banks typically structure development facilities around 60–70% of Gross Realisation Value (GRV) or 70–80% of Total Development Costs (TDC), with interest rates commonly between 5.5–7.5% per annum. Approval timelines may extend to 8–12 weeks with extensive documentation requirements. Non-bank lenders often offer faster approvals (2–6 weeks) with higher leverage (80–85% TDC) and sometimes zero presale requirements, but generally charge significantly higher rates of 9.95–11.95% per annum or more for mezzanine facilities.

Qualifying presale criteria

For a presale to qualify toward bank debt cover requirements, contracts typically must meet stringent criteria. The deposit—usually 10%—should generally be non-refundable, paid in cash or via bank guarantee from an established institution, and held in solicitor’s trust accounts with the lender’s interest noted. Contracts typically need to be unconditional and arm’s length with no termination rights if the vendor enters liquidation or administration. Sunset dates should generally extend at least 9–12 months beyond forecast completion. Banks commonly cap foreign purchasers at around four per project and deposit bonds at approximately three per project from approved issuers.

Presales that may fail to meet these criteria—including reduced deposits below 10%, conditional contracts, related party purchases without arm’s length pricing, bulk purchases exceeding two units per buyer, or excessive foreign buyer concentration—are typically treated as non-qualifying and excluded from debt cover calculations. Monthly confirmation from borrower’s solicitors is generally required, and contracts usually cannot be rescinded without lender consent.

Government support programmes

The NSW Government’s Pre-sale Finance Guarantee Program, announced as a $1 billion initiative, aims to address presale gaps by committing to purchase up to 50% of dwellings in qualifying projects. Individual dwelling values are typically capped at $2 million with project commitments generally between $5–50 million. This may enable developers to meet lender presale requirements while construction must typically commence within six months of approval.

Regulatory frameworks differ significantly across Australian states

Understanding state-specific requirements is essential—disclosure obligations, cooling-off periods, deposit handling rules, and sunset clause restrictions vary materially across jurisdictions. Eastern states generally maintain the most comprehensive regulatory frameworks while Western Australia and Tasmania tend to operate with fewer mandatory protections.

New South Wales

NSW operates under amendments to the Conveyancing Act 1919 that commenced 1 December 2019, establishing what is generally considered Australia’s most rigorous off-the-plan regime. Section 66ZM mandates disclosure statements in approved form containing draft plans from registered surveyors, proposed lot areas and locations, draft by-laws, draft management statements, development contracts, strata management statements, building management statements, and Section 88B instruments.

Cooling-off periods extend to 10 business days for off-the-plan purchases—double the standard 5 days for established properties. The Section 66W certificate process allows buyers to waive cooling-off rights after receiving independent legal advice, though solicitors must confirm they explained the contract’s effect and don’t act for the vendor. Forfeiture if cooling-off is exercised typically stands at 0.25% of purchase price.

All deposits and instalments must generally be held in trust or controlled money accounts and cannot be released to vendors before settlement under Section 66ZT. This may protect purchasers from developer insolvency during construction. NSW has no statutory cap on deposit percentages, unlike Victoria and Queensland, but trust protection typically applies regardless of amount.

Material changes to properties trigger notification obligations at least 21 days before settlement using approved forms. Purchasers then generally have 14 days to either rescind the contract with full deposit refund or claim compensation up to 2% of purchase price. Material particulars may include changes to draft plans adversely affecting use or enjoyment and by-law provisions adversely affecting the lot.

Victoria

The Sale of Land Act 1962 governs Victorian transactions with Section 32 vendor’s statements required before contract signing. These typically must contain Register Search Statements, plans of subdivision, service connection details, planning information, building permits issued in the preceding seven years, owner-builder defects reports where applicable, and the prescribed due diligence checklist.

Victoria’s cooling-off period is shorter at 3 clear business days with a fee of $100 or 0.2% (whichever is greater) if exercised. Critically, Section 9AA caps off-the-plan deposits at a maximum of 10% and mandates trust holding until plan registration. This may protect buyers from exposure to deposits exceeding standard levels.

The Sale of Land Amendment Act 2019 introduced comprehensive sunset clause restrictions with retrospective effect from 23 August 2018. Vendors generally cannot rescind under sunset clauses without written purchaser consent after 28 days’ notice, or Supreme Court order. Contracts from 1 March 2020 must typically include mandatory statements advising purchasers of these rights, with penalties of 120 penalty units (approximately $198,264 for corporations) for non-compliance.

Queensland

Queensland’s framework combines the Body Corporate and Community Management Act 1997 for community title schemes and Land Sales Act 1984 for subdivisions. Section 213 disclosure statements for proposed lots typically must identify the lot with disclosure plans prepared by cadastral surveyors, state expected annual body corporate contributions, outline service contractor and letting agent arrangements, specify the applicable regulation module, and attach proposed Community Management Statements.

The cooling-off period stands at 5 business days with a 0.25% termination penalty. Notably, Queensland permits deposits up to 20% of purchase price for off-the-plan sales under Section 68A of the Property Law Act 1974—double most other states. This higher deposit explicitly does not constitute a penalty if forfeited on purchaser default.

The Land Sales and Other Legislation Amendment Act 2023 (effective 22 November 2023) introduced sunset clause restrictions requiring buyer consent or court order for seller termination—but only for land sales. Apartments and community title schemes may remain unprotected under these reforms, representing a gap that industry bodies continue advocating to close.

Western Australia

WA introduced major strata reforms effective 1 May 2020 under the Strata Titles Act 1985. Pre-contractual disclosure statements typically cover scheme plans, by-laws, unit entitlements, AGM minutes, estimated levies, and service contracts. Notably, WA has no statutory cooling-off period—buyers can generally only withdraw before the seller executes the contract. Deposits must typically be held in trust until strata plan registration under Section 70, but sellers may retain the right to rescind under sunset clauses without the consent/court order requirements of eastern states.

South Australia

SA requires Form 1 vendor’s statements under the Land and Business (Sale and Conveyancing) Act 1994 with a 2 clear business day cooling-off period—the shortest in Australia. Maximum deposit is typically 10%, held in approved trust accounts. The state has no specific sunset clause legislation, operating under general contract law.

Tasmania

Tasmania notably operates on “buyer beware” principles with no mandatory vendor disclosure legislation. No statutory cooling-off period exists unless buyers actively opt-in through the Standard Form Contract, which may offer an optional 3-day period. The Law Reform Institute has recommended disclosure legislation but it remains unimplemented.

Australian Capital Territory

The ACT maintains comprehensive requirements under the Civil Law (Sale of Residential Property) Act 2003, including 5 working day cooling-off with 0.25% penalty, extensive prescribed documents, and sunset clause reforms requiring consent or Supreme Court order following high-profile contract cancellation cases.

Northern Territory

The NT provides 4 business days cooling-off under the Sale of Land (Rights and Duties of Parties) Act 2010 but has relatively limited disclosure requirements and no specific sunset clause legislation.

State-by-state comparison

Sunset clause reforms and their implications for developers

Sunset clauses set deadlines by which plan registration or occupation certificates must occur, allowing contract rescission if conditions aren’t met. Originally designed to protect both parties—buyers from indefinite delays, developers from unforeseen circumstances—these clauses became vehicles for potential exploitation during property booms when some developers discovered rescission could be more profitable than completion.

Historical context and regulatory response

The pattern became well-documented: developers would delay construction until sunset dates passed, then rescind contracts to resell at substantially higher prices. High-profile cases saw purchasers lose apartments that had appreciated by $150,000–$200,000 each—pre-reform courts found developers not responsible for delays, leaving buyers with only deposit refunds.

Early cases under NSW’s 2015 reforms established that developers may inherit obligations when acquiring sites and cannot rely on prior developers’ failures to justify rescission. Subsequent decisions saw courts dismiss developer applications where apartments had risen significantly, finding developers had not acted “justly or equitably” and ordering payment of buyers’ legal costs.

Current legislative requirements

In NSW, Section 66ZL of the Conveyancing Act provides vendors can generally only rescind sunset clauses with written purchaser consent after 28 days’ notice, or Supreme Court order. The notice must typically specify reasons for proposed rescission, explanation for delays, and a statement that purchasers aren’t obliged to consent. Courts may consider whether rescission is “just and equitable” including whether vendors acted unreasonably or in bad faith, reasons for delay, anticipated completion date, whether property value increased, and effect on purchasers. Developers generally bear purchasers’ legal costs unless consent was unreasonably withheld.

Victoria mirrors this approach under Sections 10A–10F of the Sale of Land Act 1962, with retrospective effect from 23 August 2018. The 28-day notice requirement applies with similar court considerations. Penalties of 120 penalty units may apply for failing to include mandatory statements in contracts from 1 March 2020.

Practical sunset period guidelines

Typical sunset periods may range from 18–24 months for standard apartments, 24–36 months for complex high-rise developments, and 12–18 months for townhouses and land subdivisions. Queensland’s BCCM Act allows up to 5.5 years for community titles if elected at contract time. Developers should generally consider setting realistic dates with 25–50% buffers, documenting all delay communications, and approaching purchasers early if extensions become necessary.

Foreign buyer considerations and FIRB requirements

Foreign purchasers may represent a significant component of presale campaigns—reports suggest Chinese buyers alone spent approximately $3.4 billion on approved residential purchases in 2022–23 and may account for around 25% of off-the-plan apartment presales. However, FIRB requirements, state surcharges totalling up to 9% in duty, and lender restrictions on foreign presale counts create complex compliance obligations.

FIRB approval requirements

A “foreign person” typically includes individuals not ordinarily resident in Australia (generally requiring 200+ days residence in the preceding 12 months plus citizenship or permanent residency), corporations where foreign persons hold 20%+ substantial interests, and temporary visa holders regardless of remaining visa duration. The $0 threshold means all residential property purchases generally require approval regardless of value.

Application fees for 2025–26 may range from approximately $15,100 for new dwellings under $1 million to over $1.2 million for properties exceeding $40 million. Established dwelling fees were reportedly tripled from April 2024—a $2 million established property now attracts approximately $90,900 in FIRB fees versus $30,300 for new dwellings. Vacancy fees also increased substantially, creating combined increases for properties left unoccupied.

The New Dwelling Exemption Certificate (NDEC) may streamline sales to foreign buyers for developments with 50+ dwellings. Developers typically pay around $65,200 to apply and can then sell to foreign purchasers up to $3 million per buyer without individual FIRB applications. Conditions generally require marketing dwellings in Australia (not exclusively offshore), selling no more than 50% to foreign persons, six-monthly sales reporting, and per-sale fee payments.

From 1 April 2025 to 31 March 2027, foreign persons are generally banned from purchasing established dwellings with limited exceptions for investments adding at least 20 additional dwellings. This effectively channels foreign investment toward new development—consistent with government policy objectives.

State surcharges for foreign purchasers

Combined with FIRB fees, foreign buyers may face 10–15% additional costs on Australian property acquisitions. Despite these costs, demand reportedly remains strong from Chinese, Hong Kong, Singaporean, Malaysian, and Vietnamese buyers seeking wealth diversification, stable investment returns, and housing for children studying in Australia.

Lender restrictions on foreign presales

Major banks typically cap acceptable foreign purchasers at around four per project and often require 20% deposits (versus standard 10%) from overseas buyers to mitigate settlement risk. Foreign presales exceeding lender caps generally do not count toward qualifying presale requirements. Higher settlement risk may stem from currency fluctuations affecting purchasing power, difficulty obtaining Australian finance, capital controls in source countries, and potential visa changes.

Developers should generally consider balancing foreign and domestic presales rather than over-relying on any single market, accounting for lender policies when setting foreign buyer targets, building settlement buffers for potentially higher default rates, obtaining NDEC certificates to streamline sales processes, and partnering with offshore financing providers to improve settlement confidence.

Marketing campaigns and presale strategies

Successful presale campaigns typically combine expression of interest processes, strategic pricing, professional display suites, and coordinated digital and traditional marketing—commonly budgeted at 1.25–2.5% of Gross Realisation Value for project marketing.

Expression of interest campaigns

Expression of interest campaigns may function as silent auctions where prospective buyers submit offers before nominated closing dates. These typically run 4–6 weeks before formal contract exchange periods, enabling price discovery while building buyer databases. Initial holding deposits of around $10,000 may signal genuine interest without securing properties—agents can often accept multiple EOIs on the same lot. Conversion to formal contracts with 10% deposits typically follows after vendor acceptance.

Pricing strategies

Pricing strategies generally balance market testing with presale velocity requirements. Fixed pricing on published price lists is standard, with staged releases commonly carrying 2–5% price increases between stages to reward early buyers and create urgency. Incentives may include rebates (cash back at settlement), upgrade packages, stamp duty contributions, legal fee contributions, rental guarantees, and furniture packages.

Display suite investment

Display suite investment varies dramatically by project scale. Basic suites may cost $50,000–$150,000, mid-range fitouts with apartment recreations might run $200,000–$500,000, and premium installations could exceed $500,000–$2,000,000. Virtual reality alternatives, interactive touchscreens, and 3D digital models increasingly supplement or replace physical suites, particularly for boutique developments under 40 units where dedicated suites may not be cost-effective.

Agent commission structures

Agent commission structures for project marketing typically run 2–4% of sale price, though channel sales and off-market groups may command 6–10% in some arrangements. Commissions are generally paid upon settlement, sometimes with portions at exchange. Master agent agreements appoint lead agents responsible for entire projects who coordinate channel partners and sub-agents.

Development type considerations

Apartments

Apartment developments typically face the most stringent presale requirements—commonly 100% debt cover for major bank financing—and complex strata establishment processes. Body corporate formation is generally automatic upon strata plan registration for developments of 3+ lots. Developers typically must prepare initial by-laws, establish budgets for owners corporation levies (often $300–$500 per lot annually for management), appoint strata management companies, and prepare comprehensive handover documentation including warranties, maintenance schedules, and compliance certificates.

Staged settlements across multiple levels or buildings may enable progressive revenue realisation while reducing peak debt exposure. Car parking and storage can typically be sold separately or included with apartments, usually registered as separate lots on strata plans with exclusive use by-laws.

Townhouses

Torrens title townhouses—where owners hold land and building outright without body corporate—increasingly dominate this segment. With no strata levies or shared governance, Torrens title may command premium valuations. Where common elements exist (shared driveways, pools), community title schemes may provide middle ground with lower fees than strata while maintaining shared area management.

Party wall easements and cross-easements for structural support typically require careful documentation. Presale requirements are generally similar to apartments though banks may show more flexibility given stronger individual lot security.

Land subdivisions

Presales can typically commence after planning permit issuance, with settlement conditional on title registration. Civil works commonly span 8–18 months covering earthworks, roads, drainage, and utilities. Council certification follows construction completion, with Land Registry processing typically taking 2–4 weeks before titles issue and settlements can proceed—generally 14–30 days thereafter.

Statutory sunset periods are often shorter for land: Queensland’s Land Sales Act defaults to 18 months while WA’s Strata Titles Act specifies 6 months if not otherwise stated in contracts.

House-and-land packages

These arrangements typically involve two separate contracts: a land contract with the developer/landowner and a building contract with the builder. This legitimate structure differs from problematic “split contracts” where land is sold subject to using a specified builder with no choice—arrangements some banks now decline to finance.

Deposits commonly apply to both components: 5–10% on land plus 3–5% on building costs. Importantly, stamp duty typically applies only to the land component, potentially providing significant savings for purchasers. Land generally settles first (often 30 days), triggering construction loan activation with progress payments across 5–6 construction stages.

Mixed-use developments

Projects combining retail, commercial, and residential components may employ stratum subdivision dividing buildings into distinct portions, each with its own strata plan. Building Management Committees typically provide umbrella governance with Strata Management Statements defining rights, responsibilities, and shared facility arrangements registered at Land Registries.

Different presale requirements may apply to each component: residential commonly faces standard 50–100% debt cover while commercial may require tenant pre-commitments and retail typically benefits from anchor tenant lease agreements.

Settlement risks and failed settlements

Valuation shortfalls, finance failures, and purchaser defaults may create cascading costs that far exceed forfeited deposits. Reports suggest that during market downturns, a significant proportion of new apartments in major cities have valued lower on completion than purchase prices, forcing buyers to bridge substantial gaps or default.

Valuation shortfalls

When a buyer contracts to purchase at $700,000 with 10% deposit but the property values at $660,000 at settlement, the bank typically lends 90% of $660,000 ($594,000), leaving a $36,000 shortfall the buyer must fund beyond their deposit. Industry estimates suggest around 10% of NSW off-the-plan buyers may experience shortfalls requiring higher deposits.

Banks generally assess at settlement date using recent comparable sales, developer reputation, location factors, and supply/demand dynamics. LVR restrictions limiting apartments to 80% LVR and postcode-specific limits on high-density developments may compound the problem. Developers can potentially mitigate risk by pricing competitively against existing stock, maintaining quality specifications supporting valuations, staging releases to avoid market flooding, and providing comprehensive information to valuers.

Finance failures during construction

The 12–36 month gap between contract exchange and settlement may span policy cycles. APRA’s serviceability buffer increased from 2.5% to 3% in October 2021. Banks reduced LVRs from 95% to 80% for apartments in many postcodes. Some valuations reportedly came in 15–23% below purchase prices. Pre-approvals typically valid only 3–6 months face full reassessment at settlement based on current property values, updated income verification, changed credit policies, and new debts incurred.

Developer remedies for default

Standard 10% deposits generally represent reasonable pre-estimates of loss recognised at law—courts routinely uphold forfeiture without requiring proof of actual loss. Queensland permits forfeiture up to 20% under Section 68A of the Property Law Act 1974.

Recent case law demonstrates recovery beyond deposits. In a notable 2025 case, a purchaser defaulting on a high-value property faced damages totalling over $2.4 million comprising the deficiency on resale, less deposit credit, plus resale costs and pre-judgment interest.

For a typical failed settlement scenario—$800,000 original price, $720,000 resale 12 months later—total costs may approximate $137,000 (around 17% of original price): $80,000 direct shortfall, $18,000 agent fees, $15,000 legal costs, and $24,000 holding costs.

Settlement default procedures

Standard contracts typically provide structured default processes. Notices to complete must generally specify correct dates, clauses, and breaches. Developers must maintain “ready, willing and able” status throughout. Invalid notices have been struck down for minor errors in multiple cases. Following valid notice expiry (commonly 14 days), vendors may terminate and pursue deposit forfeiture plus damages for any loss exceeding the deposit.

Current market conditions

The 2024–2025 market reflects acute supply-demand imbalance. Net new supply of approximately 155,000 dwellings in 2024 reportedly fell significantly short of underlying demand. Dwelling approvals reached just over 171,000—around 30% below the 240,000 generally considered required annually to meet National Housing Accord targets. Multi-unit completions reportedly hit their lowest level since 2013 while completions per capita reached 40-year lows.

Geographic divergence has widened substantially. Perth led nationally with approximately 18% annual growth, followed by Adelaide (around 14%), Brisbane (approximately 12%), and Sydney (around 4%). Melbourne declined by approximately 3%, creating potential value opportunities.

Construction costs increased approximately 30% since COVID though recent quarters have shown the lowest growth rates in years. Developer insolvencies remain elevated, with thousands of failures across recent years. Fixed-price contracts during COVID, material cost increases, and labour shortages contributed to industry stress.

First home buyer activity reportedly rose around 12% nationwide with average age reaching 37 years and a significant proportion purchasing alone. Investor loan commitments increased substantially year to September 2024, with NSW seeing strong growth. The cash rate has declined through 2025 with forecasts suggesting further reductions, potentially supporting improved affordability and demand.

Build-to-rent has emerged as a significant alternative, with operational stock reportedly reaching over 10,000 units nationally and substantial new supply forecast. Federal tax incentives reduced MIT withholding rates and increased capital works deductions for eligible projects with affordable housing components.

Feasibility implications of presales

Presales fundamentally affect project feasibility through revenue confirmation, finance qualification, and risk allocation. The capital stack typically comprises senior debt at 60–70% LTV, mezzanine debt filling gaps to 85–90% TDC, and developer equity.

Cash flow timing from presales involves deposits at exchange held in trust until settlement—generally cannot be released to developers during construction in NSW, Queensland, and Victoria. Final settlement proceeds (typically 90% balance) flow through operating expenses, senior debt repayment, mezzanine debt, then equity returns. Multi-stage developments may enable progressive settlements reducing peak debt exposure.

With Feasly’s feasibility software, developers can model multiple presale scenarios (0%, 50%, 100%, 120% coverage), settlement failure buffers, and marketing costs to stress-test project viability across different market conditions.

Financial models should typically incorporate 10–20% settlement failure buffers, marketing costs at 4–6% of GRV, presale campaign periods before construction commencement, and minimum 20% profit on TDC for mezzanine eligibility. Critical sensitivities may include peak debt cover of at least 1.1x, 5–10% contingency on construction costs, ±5% on price assumptions, and ±3 months on construction timelines.

Alternative approaches

Alternative approaches may eliminate presale requirements entirely. Build-to-rent attracts long-term debt financing repaid from rental income, typically requiring 50–55% LVR and 1.5x interest coverage but no presales. Fund-through arrangements provide institutional development funding with developers managing construction and assets retained post-completion. Forward funding sees institutional investors commit capital upfront for staged payments during construction.

Common pitfalls to avoid

Presale structuring failures commonly top the list—reduced deposits below 10%, inadequate sunset dates, missing lender consent provisions for rescission, and purchaser termination rights may all disqualify presales from bank calculations. Every contract should generally be reviewed against specific lender requirements before counting toward thresholds.

Foreign buyer over-reliance may create concentrated settlement risk. Capping foreign sales at 30–40% could help satisfy bank requirements while maintaining buffer under NDEC’s 50% limit. Requiring proof of funds or finance pre-approval before accepting deposits may be prudent.

Disclosure non-compliance can trigger rescission rights across all states. NSW requires disclosure statements in approved form with all schedules attached before exchange. Victoria’s Section 32 must typically be complete before marketing. Missing documents may give purchasers exit rights that undermine presale security.

Sunset clause management failures now carry litigation risk. Documenting all delays contemporaneously, approaching purchasers early for extensions rather than at the deadline, and preparing comprehensive evidence for any potential court application is generally advisable.

Settlement process errors may invalidate termination rights. Notices to complete must typically specify correct dates, clauses, and breaches. Developers must generally maintain “ready, willing and able” status throughout.

Practical compliance checklist

Pre-launch preparation

• Prepare comprehensive disclosure statement with all required documents per state requirements
• Engage registered surveyor for draft plan with proposed lot numbers, areas, and locations
• Prepare detailed schedule of finishes specifying all inclusions by brand and specification
• Draft by-laws, management statements, and development contracts
• Establish trust account arrangements with stakeholder (real estate agent, solicitor, or developer)
• Obtain Home Building Compensation insurance (buildings 3 storeys or fewer) or lodge building bond (NSW 4+ storeys)
• Apply for NDEC if building 50+ units and marketing to foreign buyers
• Finalise contract templates meeting lender qualification requirements

Contract requirements

• Non-refundable deposit (typically 10%) held in trust with lender’s interest noted
• Sunset date minimum 9–12 months post-forecast completion
• No purchaser termination rights on vendor insolvency
• Restricted nomination rights requiring vendor approval
• Clear measurement methodology disclosed with tolerances
• Appropriate variation clauses with proper disclosure provisions
• Settlement timing 14–21 days from registration notice

During construction

• Track foreign buyer percentage against 50% NDEC cap and lender limits
• Maintain contact details for all purchasers with periodic updates
• Monitor purchasers during construction and identify at-risk settlements early
• Document all communications regarding delays or variations
• Submit six-monthly NDEC sales reports with per-sale fees
• Prepare valuer information packages supporting contract prices
• Issue finance reminder letters at 6 months and settlement preparation guides at 3 months

Pre-settlement

• Provide 21 days notice before settlement with registered plan documents
• Notify purchasers of any material changes in approved form
• Coordinate pre-settlement inspections within 5–7 days of settlement
• Document defects and rectification timelines
• Ensure all compliance certificates and warranties available for handover

This framework provides a foundation for approaching off-the-plan campaigns in Australia’s current regulatory and financing environment. The complexity generally rewards thorough preparation, professional legal guidance, and disciplined execution—developers who master these requirements may be well-positioned to capitalise on housing demand while managing the material risks inherent in development finance.