Steps for Buying Off-the-Plan Property in Australia

1. Reserve a property

Once buyers have selected a property they are happy with, they need to pay a good-faith fee (usually A$1,000 – A$5,000) to enable the agent to apply to the developer to reserve the property. Before the contract is signed, if the buyer changes their mind about purchasing, this good-faith fee will be refunded in full; if the contract is signed, the fee forms part of the deposit. For overseas buyers, Aobo Realty will assess financial capacity in advance to determine the type and price range of property that can be purchased.

2. Sign the contract

The developer provides the purchase contract to the buyer or the buyer's representing 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 of the contract signed by both parties, at which point the purchase contract takes effect.

3. Apply for FIRB approval

For some developments that have not obtained FIRB approval, overseas buyers submit a purchase application to the Foreign Investment Review Board (FIRB). This step applies to overseas buyers only. The buyer needs to complete an application form and submit it to the FIRB for review, a process generally assisted by the buyer's representing solicitor.

4. Pay 20% deposit

The buyer needs to pay 20% of the purchase price as a deposit within the time specified in the contract (usually 14 calendar days). This deposit must be paid into the trust account of the developer's solicitor. Any interest earned while the funds are held in this trust account generally accrues to the buyer and is settled to the buyer at handover. Before the property is handed over, the developer cannot access the deposit, thereby fully protecting the buyer's interests.

5. Construction

During this 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 documentation and application.

7. Final inspection

Once the property is completed, the developer will invite the buyer or the buyer's representative to inspect it. During the inspection, any issues identified will be recorded, and the developer will then arrange for rectification. If any problems arise within three months of settlement, the developer will also be responsible for prompt repairs. 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 this does not need to be paid separately. The indoor appliances covered here include the dishwasher, oven, rangehood and cooktop, all of which come with a three-year manufacturer's warranty and two years of government-mandated insurance — a total warranty period of five years.

8. Settlement

On the day of settlement, the buyer needs to pay the balance of the purchase price (excluding the loan) to the developer. The buyer's solicitor will negotiate with the developer's solicitor, holding the contract and the funds, to complete the final settlement procedures. The buyer can then move into their new home. For overseas buyers who require it, there are professional property management agencies in Australia that manage the property, including leasing and maintenance.