Five questions to ask before you sign an off-plan contract

When you buy off-plan, you are paying for a promise: a building that does not yet exist, delivered by a company you may never have heard of. The marketing suite is polished, the render looks perfect, and the deposit is due. Before you sign, slow down and ask five plain questions.

1. Who is actually building this?

The brand on the hoarding is not always the company carrying the risk. Off-plan projects are usually run through a special-purpose entity created just for that site. Ask for the full legal name and ABN of the developer and the builder, then check who the directors are and what else they have built. A brand-new entity with no track record is not automatically a problem, but it means there is no delivery history to rely on.

2. What have they delivered before, and on time?

A developer's past is the single best guide to your future settlement date. Ask for a list of completed projects, when they were promised, and when they actually finished. A pattern of long delays or projects that quietly changed hands mid-construction is a warning sign worth taking seriously.

3. How is my deposit protected?

In most Australian states your deposit is held in a trust or escrow account and cannot be touched by the developer until settlement. Confirm in writing where your money sits, who controls it, and the exact conditions under which it is released or refunded. If anyone suggests paying a deposit directly to the developer outside a trust account, treat that as a serious red flag.

4. What does the sunset clause actually say?

A sunset clause sets the date by which the project must be finished, after which either party can walk away. The detail matters: a clause that lets the developer cancel and resell at a higher price works against you, while a longer, buyer-friendly date gives the project room to complete. Read this section carefully and have a conveyancer explain who benefits if the date passes.

5. Is the price supported by real comparable sales?

Off-plan prices are set today for a property that settles years from now. Check recent sales of similar finished apartments nearby, and be wary if the off-plan price sits well above them. Banks value the property at settlement, not at signing, and a valuation shortfall can leave you needing to find the difference in cash.

The short version

• Confirm the legal entity and the people behind it, not just the brand.
• Judge the developer on what they have delivered, and when.
• Get deposit protection in writing before you pay anything.
• Understand who the sunset clause really protects.
• Sanity-check the price against real, recent comparable sales.

None of these questions require insider knowledge, but they do require honest answers. A DeveloperSignal report pulls this information together into a single risk signal so you can walk into the decision with eyes open.