Off-Plan Development Projects
What off-plan means
Off-plan sales occur before completion, so the buyer bears construction and delivery risk. Regulation focuses on protecting buyers through disclosure, escrow, and developer accountability.
Key requirements
Understand project registration and approval before marketing or selling; disclosure of project details, specifications, completion dates, and payment schedules; restrictions on marketing unregistered projects; and the requirement that buyer payments flow into the designated escrow account rather than to the developer directly. Know the rules on holding deposits, reservation agreements, and the sale and purchase contract content.
Developer obligations
Developers must deliver according to approved plans, meet milestones, and report progress. Changes to specifications or delays generally require disclosure and may give buyers remedies.
Common traps
Questions test whether a broker may take a reservation fee before project registration (generally no), whether payments may be routed to the developer's operating account (no), and whether verbal promises about completion dates are binding or must be documented. Another trap is assuming the broker is not responsible for verifying project registration.
Rule of thumb
Before marketing any off-plan unit, confirm three things: the project is registered, the escrow account exists, and the contract discloses the payment schedule and completion date.
Worked example
A developer asks a broker to start collecting reservations before project registration is complete. Correct answer: the broker must decline until registration and escrow arrangements are in place.