Warning issued on out-of-plan purchases at Qld

The Honorable Shannon Fentiman, who is also the state’s attorney general, acknowledges that VEFA contracts are “complex”, involving non-standard clauses.

“They also involve risks for the developer and the buyer, such as changes in the value of the properties during the term of the contract,” she said.

“I strongly urge anyone looking to buy out the plan to seek legal advice before signing a contract.”

His comments come as the state asks consumers for feedback on off-plan purchases ahead of possible reform in the region.

The reforms would aim to better protect buyers who have signed off-plan contracts.

The Attorney General said that “since the pandemic we have seen more people moving to Queensland which has led to an increase in property sales, including the purchase of ‘off-plan’ developments”.

“I am aware of recent reports of developers terminating ‘off-plan’ contracts for the sale of land if the contract is not settled within a specified period,” she said.

“At the same time, house prices have risen, which may leave these buyers with limited or no options in their budget.

“That’s why the Palaszczuk government is asking homebuyers and property developers to have a say in these residential property laws.”

The online survey, available on the Office of Fair Trading website, remains open until September 14, 2022.

Weighing in on consumer consultation, Gaven MP Meaghan Scanlon said an influx of people into the state requires the industry to plan and further develop housing supply.

“Buying a home is one of the most important decisions and investments Queenslanders will make in their lifetime – so it is very important that they are protected when entering into a contract for a off-plan development,” Ms Scanlon said.

She encourages property buyers and the industry to “have their say”.

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About the Author

Grace Ormsby

Grace is a reporter for real estate and investment brands Momentum. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communications (Journalism) from Newcastle University. She is passionate about providing easy-to-digest information and relevant content for her key audiences and… Read more

Warning issued on out-of-plan purchases at Qld




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Last update: September 02, 2022

Posted: September 03, 2022