Buying a home that does not yet exist is a different transaction from buying a completed house. Two common paths are an off-the-plan contract, where you agree to buy a dwelling the developer will finish, and a land-and-build path, where you buy vacant land and enter a building contract, or buy a house-and-land package.

Both can be treated as new homes for some first home owner grants and for the 5% Deposit Scheme. Both can also leave you waiting, paying, and committed long before you can inspect a finished property. The legal detail sits in the contract, and it differs by state and territory, so this explainer is a map of the questions, not a substitute for a conveyancer.

This is general information only. It is not personal advice or legal advice.

How the two paths differ

An off-the-plan purchase is usually a single contract to buy a specific lot in a development, such as an apartment, townhouse or house, that has not been completed. You pay a deposit on signing, wait through construction, and settle when the lot can be transferred. You often cannot do a normal building and pest inspection of the finished home before you are bound.

A land-and-build path is usually two contracts, or a package that combines them: one to buy the land, and one to build the house. You may settle the land first and then pay the builder in progress stages. Owner-builders are a further variant, with their own licensing, insurance and grant rules.

A house-and-land package can look like a single product in the marketing, but you still need to know whether you are signing one contract or two, who holds the deposit, when the land settles, and what happens if the build is delayed or the specifications change.

In both cases you are buying a promise about a future home. ASIC's MoneySmart buying guide, last updated 14 October 2026, says to have a solicitor or conveyancer review a contract of sale before you sign, so they can explain your rights and obligations and identify risks. That advice is at least as important when the home is not there yet to inspect.

Deposits, finance and valuations

MoneySmart notes that a private-treaty contract sets the deposit and when it is payable, and that most states and territories have a short cooling-off period on a private sale, which is generally not available at auction. Off-the-plan and house-and-land contracts have their own deposit and cooling-off settings, which may be different again. Do not assume a standard 10% deposit, a standard cooling-off right, or a right to walk away if finance falls through, unless the contract says so.

Help to Buy's official guidance strongly recommends a "subject to finance" clause. That is good practice on any purchase that depends on a loan, including a build, because a lender's final approval and valuation often come later.

Valuation risk is sharper on a delayed settlement. The contract price is fixed, but the lender values the property near settlement or at staged points in a build. If the valuation comes in below the contract price, you may need a larger deposit, or the loan may not proceed on the terms you expected. For the 5% Deposit Scheme and Help to Buy, both the purchase price and the lender's assessed value must stay within the location cap, and for a vacant-land build under the 5% Deposit Scheme the land price plus build costs must come in under the cap.

Pre-approval also expires. MoneySmart says pre-approval often lasts three to six months. A development can take much longer than that, so you may need to be re-assessed, at a different rate and under different serviceability rules, before you can settle.

Grants, schemes and stamp duty

Most first home owner grants are aimed at new homes, including many off-the-plan purchases and new builds, and they are not available for established homes. The amount, value cap and the date that starts the eligible transaction all depend on the state or territory. In New South Wales, for example, Revenue NSW has a $600,000 cap on a newly built or substantially renovated home and a $750,000 combined cap for vacant land plus a comprehensive building contract. Queensland requires the total, including land and variations, to be less than $750,000. Confirm the local cap and the contract-date rules in the grants explainer.

The 5% Deposit Scheme explicitly allows off-the-plan purchases and vacant land with a building contract, as well as new or existing completed homes, subject to the cap. Help to Buy also allows a vacant block with an eligible building contract, including a demolition and rebuild.

Stamp duty, or transfer duty, is assessed under state and territory rules. A vacant-land purchase, a house-and-land package, an off-the-plan dwelling and a completed home can be treated differently, including for first-home concessions. Use the stamp duty calculator as a starting estimate, then confirm the dutiable value and any concession with the revenue office or your conveyancer. Do not budget from a neighbour's duty bill on a different type of contract.

Grant payments and duty concessions may not arrive at the same time as a deposit is due. A grant paid at settlement, or at a building milestone, does not fund an early developer deposit unless the lender and the revenue office arrange that.

Contract issues to have reviewed

Before you sign, ask a solicitor or conveyancer to walk through at least these points. The legal effect of each one is a matter of the contract and of local law, which this article does not try to restate:

  • what exactly you are buying, including plans, finishes, inclusions and the lot or land boundaries
  • the sunset date, and what happens if the development or the build is not finished by then, including whether the developer or builder can walk away, and on what terms you can
  • how variations, cost increases and substitutions of materials are approved and paid for
  • who holds the deposit, whether it is in a trust account, and in what circumstances it can be released or forfeited
  • finance, valuation and inspection conditions, and whether you can terminate if a loan is declined or a valuation is short
  • when land settles if the contracts are split, and what you pay in interest, rates and insurance from that date
  • statutory warranties, home-building compensation or insurance, and defect-rectification rights after completion
  • body corporate or owners-corporation levies, if the home is in a strata or community scheme
  • occupancy rules, if you are relying on a grant or a government scheme that requires you to live in the home within a set time

A completed established home, by contrast, can usually be inspected before you are bound, and settlement periods are often shorter. MoneySmart recommends a building and pest inspection, and, on an auction, arranging those inspections beforehand because there is generally no cooling-off period.

The first home buyer checklist puts these issues in the wider buying sequence.

Frequently asked questions

Is off the plan cheaper than building, or the other way around?

There is no official answer. The advertised price is only one number. Variations, delay, holding costs on land, duty, levies and the risk of a short valuation can all change the end cost. Compare complete contracts, not brochures.

Can I use the First Home Super Saver Scheme?

Yes, subject to the ATO's rules. For a build on vacant land, ownership of that land generally must not have already transferred to you before you request an FHSS determination, and you have to enter the building contract within the allowed period after the release. See the FHSS explainer.

What if the finished home is not what I was shown?

Remedies, if any, depend on the contract, the plans that were incorporated into it, and local consumer and building law. That is a question for your solicitor, and in some cases for the state fair-trading or building regulator, not something to assume from the display suite.

General information warning

This article is general information only. It is not personal financial product advice or legal advice, and it is not a recommendation to buy off the plan, to build, or to sign a particular contract. It does not take into account your objectives, financial situation or needs. Off-the-plan and building contracts can commit you years ahead, and can put your deposit and your loan at risk if dates, valuations or specifications change. Have a solicitor or conveyancer review the contract, and consider speaking with a licensed adviser, before you sign.

Sources

Last reviewed: November 2026.