Off the Plan Property Sales or Selling off the plan occurs when a property developer sells apartments in a multi-storey building that has not yet been built yet. Sometimes the term ‘off the plan’ refers to subdivisions of vacant land. The same principles apply to both. What makes these contracts work is in the special conditions.

Whether strata plan or subdivision of vacant land, the Contract for Sale is based on the standard terms and conditions in the Contract for the Sale and Purchase of Land 2019 edition published under copyright by the Law Society of NSW and The Real Estate Institute of New South Wales, substantially altered with complex special conditions. The special conditions modify the Contract to make it an ‘off the plan’ contract.

With Off the Plan Property Sales, usually after the contract is signed and exchanged, a period of up to two years or more may elapse until completion. In this time the property is built, the strata plan lodged, and several more properties may be sold off the plan. Project finance for most residential strata developments is usually dependant on a minimum number of exchanged off the plan contracts.

The special conditions must allow the vendor sufficient time to build and allow for delays. At the same time it should bind the purchaser, and still be acceptable for the purchaser to sign.

All off the plan contracts are subject to the vendor effecting the registration of the strata plan or subdivision by a certain date (known as the sunset date).