Residential Property

Buying Off the Plans & New Builds

Understand the contract before you commit

Buying a townhouse, apartment, subdivision property or turnkey home before it has been completed can offer exciting opportunities, but it also involves risks that don't arise when buying an existing home.

You may be committing to a property that won't be completed for months or even years, based largely on plans, specifications and promises contained in the agreement.

At Smith and Partners, we help buyers understand off-the-plan agreements before they sign and identify provisions that could affect the property, price or eventual settlement.

Common off-the-plan matters

We can assist with:

• Apartments and townhouses
• Turnkey homes
• House and land packages
• Subdivision purchases
• Agreements for Sale and Purchase
• Sunset clauses
• Long settlement periods
• Changes to plans and specifications
• Title and easement considerations
• Finance and settlement requirements

What is different about buying off the plans?

When you buy an existing property, you can usually inspect what you're purchasing before committing.

With an off-the-plan purchase, the development may not yet exist. The agreement therefore needs to deal with what will be built, when it will be completed, what the developer may change and what happens if the development is delayed.

These contracts can be lengthy and developer-friendly, making legal review particularly important.

Understanding sunset clauses and changes

Off-the-plan agreements may allow for changes to plans, dimensions, materials, common areas or other aspects of the development.

They may also contain sunset dates dealing with how long the developer has to complete the project.

We can explain these provisions and identify how they may affect your rights before you sign.

Finance and settlement

A long period can pass between signing an off-the-plan agreement and settlement.

Your financial circumstances, lending criteria and the property market may change during that time. It is important to understand your contractual obligations and discuss finance requirements with your lender before committing.

Why seek advice early?

Obtaining advice early can often prevent a dispute from escalating. It can also help you:

• Understand your contractual rights and obligations
• Assess the strength of your position
• Preserve important evidence
• Identify opportunities for early resolution
• Minimise financial and commercial risk

Our goal is to provide clear, practical advice that gives you confidence to make informed decisions and achieve the best possible outcome.

How Smith and Partners can help

Our Property Law team can review your off-the-plan agreement, explain the terms in plain English and identify potential risks before you commit.

If you're considering an apartment, townhouse, turnkey home or other off-the-plan purchase, contact us before signing the agreement.

Frequently Asked Questions

Helping you navigate property decisions

Practical articles and legal insights on buying, selling, building, financing, and owning property in New Zealand.