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Deciding what to buy

Off-the-plan property

Buying before construction finishes — the real deposit cap, sunset clause and duty concession rules, not assumptions.

Jurisdiction: Victoria only·Written by: Delora editorial team·Last reviewed: 2026-07-29·Change history
Key points
  • The deposit is capped at 10% of the contract price.
  • If the plan of subdivision isn't registered within the contract's sunset period (18 months by default), you can end the contract and get your deposit back.
  • Victoria's off-the-plan duty concessions apply only to first-home buyers or a principal place of residence, with specific dutiable-value thresholds.
  • Your finance and the property's valuation can both change between signing and settlement.

Deposit and contract protections

A Victorian off-the-plan contract of sale requires a deposit of no more than 10% of the contract price (Consumer Affairs Victoria, verified 29 Jul 2026), and must carry a warning notice covering the deposit negotiation, the time that may pass before you own the property, and the possibility the property's value changes in that time.

The sunset clause

If the plan of subdivision isn't registered by the time specified in the contract, or by the default of 18 months, you have the right to end the contract and get your deposit back (Consumer Affairs Victoria, verified 29 Jul 2026). Check your specific contract's sunset date rather than assuming the 18-month default applies.

Duty exemptions and concessions

Since 1 July 2017, Victoria's off-the-plan duty exemption and concessions apply only to a principal place of residence or first home buyers (Consumer Affairs Victoria, verified 29 Jul 2026): full exemption for first-home buyers with a dutiable value of $600,000 or less; a concession for first-home buyers between $600,001 and $750,000; and a concession for any principal-place-of-residence buyer at $550,000 or less. The concession amount depends on how advanced construction is when the contract is signed — the closer to completion, the higher the duty is likely to be.

Common mistake: treating the finance and price locked in at signing as final. Between contract and settlement — often years for a large development — your finances, interest rates and the property's valuation at completion can all change; see the off-the-plan finance guide in the financial preparation hub.

Practical checklist

Before signing an off-the-plan contract

  • Check the specific sunset date in your contract
  • Confirm your duty exemption/concession eligibility against the current thresholds
  • Ask what happens to your finance approval if settlement is delayed
  • Get legal advice on the contract's variation and disclosure clauses

Questions for a professional

  • What is this contract's specific sunset date, and what are my rights if it's missed?
  • Am I eligible for a duty exemption or concession on this specific purchase?

Official resources

Important limitations: This is general education, not legal advice on any specific off-the-plan contract.

Sources and methodology

Figures on this page are drawn from Delora's local knowledge graph, refreshed from these primary sources and checked for changes on a regular schedule. If a figure here looks out of date, the official source above is always the authority — please let us know.

Written by
Delora editorial team
Professional review
Not yet reviewed by a licensed professional — confirm anything material with your conveyancer, broker or accountant
Jurisdiction
Victoria only
Content type
Guide (general education, not financial advice)
Last reviewed
2026-07-29
Sources
See "Further reading" / "Sources" above for cited sources