Buying off-the-plan in Victoria — what to check before you sign

The short version

An off-the-plan purchase is a contract to buy a lot that doesn't legally exist yet — the building isn't finished, or the plan of subdivision hasn't been registered. You sign now, pay a deposit, and settle later once the plan registers and the lot is created. That gap is where the off-the-plan-specific risks (and protections) live.

Sunset clauses — and the protection you have

A sunset clause sets a long-stop date by which the plan must register (or the building must finish). If it isn't met, the contract can end. The concern historically was vendors deliberately delaying to trigger the sunset, end the contract, and resell at a higher price.

Victorian law now limits this. Under sections 10A–10E of the Sale of Land Act 1962 (Vic), a vendor generally cannot rescind under a sunset clause without either your written consent (after a 28-day notice setting out the reasons) or an order of the Supreme Court. So a vendor-friendly sunset clause is largely neutered by statute — worth understanding, but not the alarm it once was.

Changes to the plan

If the registered plan of subdivision differs materially from what you were shown — a smaller lot, a changed layout — you may have a right to rescind. Notice of a material amendment triggers a window (commonly 14 days) in which to act. Missing that window is a well-known off-the-plan pitfall, so the timing matters.

GAIC — the growth-areas levy

If the land is in a designated growth area on Melbourne's fringe, the Growth Areas Infrastructure Contribution (GAIC) may apply — a levy that helps fund infrastructure in those areas. The Section 32 should disclose whether it applies and its status. It can be a material cost, so don't skim past it.

Stamp duty off-the-plan concession

Victoria offers an off-the-plan duty concession that can reduce the dutiable value by the construction costs incurred after you sign — which can mean a meaningful stamp-duty saving on an eligible purchase. Eligibility rules and thresholds change over time, so treat any saving as something to confirm for your specific purchase rather than assume.

What to check before you sign

1. The sunset date. Know when it is and that the statutory protections (28-day notice, your consent, court order) apply.
2. Your rights if the plan changes. Understand the amendment-notice window so you don't miss it.
3. GAIC. Check whether the growth-areas levy applies and who bears it.
4. What's actually fixed. Finishes, fixtures and inclusions — what's promised versus indicative.
5. Your deposit and finance. A long build means a long gap before settlement; make sure your finance can hold across it.

Common questions

Can the developer cancel my contract and resell?

Not freely. Since the 2019 reforms, a vendor generally can't rescind under a sunset clause without your consent or a Supreme Court order — the statute overrides a contract term that tries to give them an easier exit.

When do I pay stamp duty?

Duty is generally assessed around settlement. The off-the-plan concession, where it applies, can lower the dutiable value — confirm the current rules for your purchase.

What if construction takes longer than expected?

That's what the sunset clause governs. The protections mean the vendor can't simply walk away to your detriment, but a long delay still affects your finance and plans — so the sunset date and your lender's position both matter.