Buying Off-the-Plan Property in Australia (Apartments and Townhouses): The Process (Updated 2024)

1. Reserve a property
Once buyers have chosen a property they are happy with, they pay a holding deposit (usually A$1,000 – A$5,000), which allows the agent to request that the developer reserve the property on their behalf. If the buyer changes their mind before the contract is signed, this holding deposit is refunded in full; if the contract is signed, the holding deposit forms part of the deposit. For overseas buyers, Aobo Realty will assess financial capacity in advance to determine the type of property and price range that can be purchased.

2. Sign the contract
The developer provides the purchase contract to the buyer or the buyer's solicitor. The buyer signs after consulting their own solicitor and fully understanding the contract; at the same time, the developer also signs the purchase contract and provides the buyer with a copy signed by both parties, at which point the purchase contract takes effect.
 
3. Apply for FIRB approval
Overseas buyers submit a purchase application to Australia's Foreign Investment Review Board (FIRB). This step applies only to overseas buyers. From July 2023, FIRB applications use the latest system, and this process is generally completed with the assistance of the buyer's solicitor.

For details, please see - 

Updated Foreign Investment Review Board (FIRB) fees for the 2024–2025 financial year

4. Pay 10% – 20% deposit
The buyer must pay 10% or 20% of the purchase price as a deposit within the time specified in the contract (usually 7–14 calendar days). This deposit must be paid into the developer's solicitor's trust account. Any interest earned while the funds are held in the trust account generally belongs to the buyer and is settled to the buyer at settlement. Before the property settles, the developer cannot draw on the deposit, thereby fully protecting the buyer's interests.
 
5. Construction
During the construction period, the buyer does not need to pay any fees.
 
6. Home loan preparation
Three months before handover, Aobo Realty will assist clients in preparing and submitting their loan documents and application.
 
7. Final inspection
Once the property is completed, the developer will invite the buyer or the buyer's representative to inspect it. Any issues found during the inspection will be recorded, and the developer will then arrange for them to be rectified. If the buyer requires a professional building inspector to issue a formal inspection report, Aobo Realty can help arrange this. If any problems arise within three months of settlement, the developer will also be responsible for repairs in a timely manner. At the same time, the developer registers the title for the project.
 
8. Warranty and maintenance
The quarterly Body Corporate Fee already includes building insurance, so there is no need to pay for it separately. The indoor appliances covered here include the dishwasher, oven, rangehood and cooktop, all of which carry a three-year manufacturer's warranty and two years of government-mandated insurance, for a total warranty period of five years.
 
9. Settlement
On the day of settlement, the buyer pays the balance of the purchase price (excluding the loan) to the developer, and the buyer's solicitor liaises with the developer's solicitor to complete the final settlement procedures. The buyer can then move into their new home. For investors who will not be living in the property, Aobo Realty can arrange property management, including leasing, maintenance and more.