Here to shed light on the significant changes coming to off-the-plan contract legislation is property specialist and College of Law adjunct lecturer, Greg Stilianou. Greg explains the key details around the proposed reforms, how they aim to rebalance power between developers and purchasers, and offers practical advice for legal practitioners and consumers.
When transparency meets consumer protection
"The most significant changes we're likely to see focus on improving transparency, tightening up how sunset clauses operate, and introducing a range of new consumer protections – all aimed at creating a fairer balance between developers and purchasers in off-the-plan sales," Greg explains.
There are a few key areas where the impact will be most direct.
"Disclosure requirements - The Disclosure Statement is expected to be expanded, with developers having to include more detailed development information about key development milestones. The idea is to give purchasers better insight into how a project is progressing. There's also a proposal to make developers provide updates as those development milestones are reached, which would give buyers ongoing visibility rather than just a snapshot at the beginning," Greg says.
One of the most critical areas of reform concerns sunset clauses, which have been problematic in the past.
"This is a big one,” Greg say. “The reforms propose making it mandatory to include sunset clauses that cover the registration of the plan and the issuing of the occupation certificate. That's in response to some common issues we've seen.”
"First, not all conditional contract terms are caught by the existing sunset clause protections. For instance, contracts might allow a developer to terminate if finance isn't secured by a certain date—but those aren't considered 'sunset events' under the current legislation."
Closing loopholes and expanding protections
Greg highlights how the current system sometimes leaves purchasers vulnerable.
"There are situations where a contract doesn't include a relevant sunset clause at all, and the purchaser is left without any ability to exit—even after long delays. In some cases, developers can extend sunset dates multiple times, indefinitely, with no clear recourse for the buyer."
Currently, under section 66ZS of the Conveyancing Act 1919, a 'sunset event' means either the registration of the plan of subdivision or the issuing of the occupation certificate.
“There's now talk of expanding that definition to include other events that often act as deal-breakers, like failure to hit pre-sales targets, get development approval, or secure site ownership. That would limit a developer's ability to walk away unilaterally without consent or Court approval,” Greg says.
Additional proposed reforms include greater transparency about land ownership.
"Developers may soon be required to clearly state whether they own the land, and if not, when they expect to," Greg notes. "We're also looking at a statutory obligation for developers to lodge a caveat or similar notification on title, protecting a purchaser's interest in the property once an off-the-plan contract is signed."
These changes will directly affect how off-the-plan contracts are structured and how they operate throughout the project lifecycle.
Rebalancing the power dynamic
When asked about how these changes affect the balance of power between parties, Greg is clear about the intent.
"The clear intent here is to shift the balance, just slightly, back in favour of purchasers. Right now, buyers take on a lot of risk. They're committing to something they can't physically inspect, often years in advance, relying heavily on marketing material and early-stage disclosures."
The reforms aim to address a range of imbalances in the current system by requiring developers to provide clearer, earlier, and more detailed information that will help level the playing field.
“One of the best examples is the reform of sunset clauses. Historically, there have been concerns about developers using delays strategically – waiting until values go up, then rescinding and reselling at a higher price. Requiring either Court approval or buyer consent before terminating under a wider definition of 'sunset event' helps close that loophole and gives purchasers much-needed certainty."
Marketing materials will no longer be sufficient for developers to meet their obligations.
"The enhanced disclosure obligations also mean developers can't just rely on glossy brochures. They will be required to disclose material facts upfront and to notify purchasers if those facts change. That's a big step toward ensuring people know what they're buying, and have a way to respond if things start to shift significantly."
Practical guidance for legal practitioners
Greg has some pragmatic advice to legal professionals preparing for these changes.
"It's still early to start rewriting your off-the-plan precedents, since the changes are at the proposal stage. But that doesn't mean lawyers should be standing still," he advises.
"For those advising developers, now's the time to talk to your clients about what these changes could mean for their disclosure obligations. They will likely need systems in place to track key project milestones and update purchasers as things progress. It's not just about legal drafting – it's about operational readiness."
Those representing purchasers also need to prepare.
"On the purchaser side, lawyers should start preparing clients for how to interpret changes in the disclosed information. Are the proposed changes material? Do they give the purchaser the right to rescind? Or seek compensation? Being proactive in that advisory role will be key, especially if the final reforms build in new or time-limited rights for purchasers."
Essential questions for consumers
When it comes to advising potential buyers, Greg said due diligence remains crucial.
"These reforms are all about giving buyers more protection – but off-the-plan contracts are still complex, and the risks haven't disappeared. Buyers need to go in with their eyes open, and that starts by asking the right questions," he says.
Greg recommends buyers ask their lawyers about specific aspects of what they are purchasing.
"What exactly am I buying?” Get clarity on what's being disclosed. Ask your lawyer to walk you through the plans, finishes, and common property – then confirm whether those can change.
Understanding timing and potential delays is also critical.
"What happens if the development is delayed?” Understand the sunset clause. When does it expire? Can the developer extend it, and if so, how many times?
Buyers should also clarify their rights if circumstances change.
"Can the contract be rescinded or varied?” Find out if the developer has any unilateral termination or variation rights. Are there notice and consent provisions in place?
And Greg’s final question for consumers…
"What if something important changes?” If the unit layout, size, or schedule of finishes changes, do you have any remedies? Can you walk away, or claim compensation?
“Ultimately, these reforms aim to give buyers more information and more control. But that only really works if purchasers are encouraged to ask these kinds of questions – and if their lawyers are ready to explain what the answers mean in practical, real-world terms," Greg says.
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