What's Involved
What we handle
Contract review
OTP contracts include sunset clauses, development plan variations, and conditions that differ significantly from standard contracts. We explain exactly what you are agreeing to.
Sunset clause advice
We advise on sunset clause risks and what protections are in place if a developer delays or cancels the project.
Plan registration
When the development is complete, we confirm the final plan of subdivision has been registered and matches the contract before settlement proceeds.
Settlement
Settlement on an OTP purchase can occur years after signing. We manage the entire process through PEXA when the time comes.
Real-world experience
Scott's Take
"Off-the-plan contracts are written for developers. Every clause is designed to protect their flexibility, not yours. The variation rights, the schedule of finishes, the sunset provisions — those are where deals unravel. If a clause looks unusually broad, it probably is. That's exactly what we're looking for."
Variation clause renegotiated before signing
A buyer came to us before signing a contract for an off-the-plan apartment in Melbourne, with settlement 18 months out. We reviewed the contract and flagged a variation clause allowing the developer to alter the floor plan by up to 5% without buyer consent. We negotiated that threshold down to 2% and added a right to terminate if the view was materially obstructed by any other development on the same site. When the development completed, the apartment was delivered exactly as contracted.
From the fileWhat catches people out with Off-the-Plan
Signing first and trying to negotiate later. Once the contract is executed, your leverage is gone unless the developer agrees — and they rarely do.
Not understanding the schedule of finishes. Developers have broad substitution rights in most standard OTP contracts. The fittings and fixtures you saw in the display suite are not necessarily what you'll get.
Losing track of the long settlement period. Settlement could be two or three years away. Your financial circumstances and borrowing capacity will have changed. Understand what happens if you can't complete.