The comparison plate
Each cell is taken from that state’s own consumer page, in that page’s terms.
| State | Deposit | Before signing | If it runs late |
|---|---|---|---|
| VIC | No more than 10 per cent of the contract price. | The contract must carry a clearly visible warning notice, covering the 10 per cent limit, the time that may pass before the buyer owns the property, and that its value may change. | If the plan of subdivision isn’t registered by the time in the contract, or by the default of 18 months, the buyer can end the contract and get the deposit back. |
| QLD | Can be released to the seller only at settlement, or if the contract otherwise ends and the seller is entitled to it. | A disclosure statement identifying the proposed lot, part of it completed by a cadastral surveyor, which the buyer signs and dates. | For a proposed lot, the seller must settle within 18 months of the contract; if not (and the buyer isn’t in default), the buyer may terminate by written notice before settlement. |
| WA | Usually no more than 10 per cent. For strata, deposits are held in trust with a solicitor, real estate agent or settlement agent until the strata plan is registered. | For strata, the developer must provide disclosure statements, details of the proposed strata plan and the strata by-laws. | Buyers can cancel if the deadline to register the strata or survey-strata plan isn’t met. |
| SA | Normally paid when the contract is signed, with the balance due on completion. | SA.GOV.AU lists matters to ask about, including changes to finishes, the buyer’s rights if approval isn’t given or the home isn’t finished on time, design changes after signing, and who repairs defects. The contract binds once both sides sign. | A set number of properties may need to sell before building starts, so the developer’s timeframes could change. |
| NT | Usually paid on signing. NT.GOV.AU says it should be held in a trust account with a licensed real estate agent, licensed conveyancing agent or lawyer. | The contract won’t carry a completion date when signed; it is added once the building is finished and the unit plan registered. | Completion dates may be uncertain, with possible delays from weather, contractors or supply. |
| ACT | Deposit money can be tied up for significant periods. | The standard contract for a home not yet built allows certain variations to the plans that don’t reduce the size by more than 5 per cent. | No legally binding statement of when it will be finished; special conditions can let the builder extend the date for causes beyond their control. |
Queensland: sunset clauses since November 2023
A sunset clause lets a party end an off-the-plan contract if it isn’t settled within a set time. Queensland’s reforms of 22 November 2023 limit when a seller can use one to end an off-the-plan contract for the sale of land: only with the buyer’s written consent, under a Supreme Court order, or in another situation set by regulation.
The limits cover contracts signed but not settled by 22 November 2023, and contracts signed on or after that date. They don’t extend to community titles schemes such as apartments.
Queensland also gives buyers a way out for “material prejudice”: if the developer notifies a change to what was disclosed about the land, and the change is a significant disadvantage (a significantly reduced size, for example), the buyer can end the contract within 30 days of the notice or before title transfers, whichever is sooner.
Western Australia: interest on the deposit
Two thresholds matter in WA. If a deposit tops $20,000, or settlement sits more than 60 days off, Consumer Protection WA says a buyer can make a written request for the money to earn interest in an account, with that interest going to the buyer. And no off-the-plan sale in WA settles until Landgate has issued the certificate of title.
WA’s page also flags the “variation clause”: some contracts let the developer change specifications without the buyer’s approval, and agreeing to one may stop a buyer claiming compensation for changes that don’t suit them.
After the keys: defects
- NT A 13-week defects clause in the contract can be used to have the developer fix defects found in that time. Builders and developers must also hold home warranty insurance for residential building work valued at more than $12,000.
- ACT Most off-the-plan contracts include a maintenance period of at least 90 days, which usually excludes items covered by a manufacturer’s warranty.
- WA A defects liability clause makes the developer responsible for repairing defects; it generally isn’t included in a freehold land contract.