Off-the-plan and New Build Purchases
Insight
Off-the-plan and new-build purchases are increasingly common in New Zealand, especially in high-growth areas. These transactions offer the opportunity to secure a modern property with lower upfront payments, but they come with unique risks involving construction timelines, variations, developer obligations and title creation.
Unlike standard purchases, buyers commit early based on plans and specifications rather than a completed home. This makes clear and detailed contracts essential. Lawyers review the agreement, check the developer’s obligations, assess variation rights, confirm sunset clauses, and ensure deposits are protected.
People usually seek help when reviewing lengthy developer agreements, when unsure about completion timeframes, or when comparing new builds across different developers. This guide explains common issues in off-the-plan purchases and how a lawyer can help safeguard your position.
Common Issues With Off-the-plan Purchases
Common pitfall:
Focusing only on staged payments and overlooking clauses that allow developers to vary design, materials or settlement dates without compensation.
Common issues include construction delays, design changes, uncertainty about title issue dates, disputes about what constitutes a 'material' variation, and concerns about the developer’s financial stability. Some buyers are surprised when the final product differs from plans or when settlement dates are pushed back repeatedly.
Buyers should also be aware of risks related to consent notices, body corporate setup for multi-unit developments, changes to common areas, and whether promised amenities actually form part of the final development.
Understanding Developer Agreements
Off-the-plan agreements can be lengthy and complex. They often include detailed clauses about construction standards, variation rights, delays, disputes, settlement procedures and buyer obligations. A lawyer identifies terms that may expose you to unexpected risk and negotiates changes where appropriate.
Developers may use their own contract forms rather than standard ADLS/REINZ agreements, so independent legal review is essential to ensure fairness and transparency.
Comparing New Build Developments
Not all new builds offer the same value or long-term reliability. Buyers should compare developer track records, construction materials, guarantees, unit-title arrangements, body corporate rules, and maintenance plans. Some developments may appear similar but have different legal frameworks affecting ongoing costs and rights.
A lawyer can highlight differences between agreements so you can make an informed choice before committing.
Costs for Off-the-plan Legal Advice
Legal fees vary depending on the complexity of the developer’s agreement, whether negotiations are required and whether the purchase involves a unit-title or freehold structure. Off-the-plan reviews often take longer than standard purchases because documents are more extensive.
There may also be additional costs for body corporate reviews, title checks, or variations requested during construction.
How to Choose a Lawyer for New Builds
Choose a lawyer who regularly reviews off-the-plan agreements and is familiar with developer practices in your region. Ask how they approach variation clauses, sunset dates, deposit protection and construction contingencies.
If the development involves apartments or townhouses, it is helpful to instruct someone experienced with unit-title structures and body corporate rules.
Find a Lawyer for an Off-the-plan Purchase
Explaining the development’s stage, expected completion date, and the draft agreement helps match you with lawyers who regularly assist buyers in new-build projects. This avoids delays and ensures more focused early advice.
By outlining any concerns about variations, title timing or body corporate setup, you allow potential lawyers to assess your situation more accurately.
Need help with an off-the-plan purchase?
Tell us about the development to get matched with lawyers experienced in new builds.
Frequently Asked Questions
What does 'off-the-plan' mean?
Buying off-the-plan means purchasing a property before it is completed, often before construction has started. You agree to buy based on plans, specifications and contract terms, with settlement occurring once the property is built and titled.
What are sunset clauses?
Sunset clauses allow either the developer or the buyer to cancel the agreement if the build is not completed by a certain date. Your lawyer can explain whether the clause is fair and whether you risk losing the opportunity to purchase if delays occur.
How are deposits handled in new-build contracts?
Deposits are usually held in a trust account until settlement or until conditions are met. Your lawyer confirms whether the deposit is protected and what happens if the developer does not meet obligations or if there are construction delays.
Can the developer change the design or materials?
Most off-the-plan agreements allow some variations to design, layout or materials. The key question is whether changes are 'material'. Your lawyer assesses what the contract allows and what options you have if the final product differs from what was promised.
Do banks lend on off-the-plan properties?
Yes, but many lenders provide only conditional approval until the property is closer to completion. Your lawyer can help ensure you meet loan conditions and understand what is needed for final approval.
You don’t need all the answers
Property issues can feel overwhelming — especially when you’re facing deadlines. Sharing a few details about your situation is enough for a lawyer to understand the context and guide you through the next steps.
Get Help With an Off-the-plan or New Build Purchase
Buying a new build or off-the-plan involves long construction timelines, staged payments, sunset clauses and variable completion dates. Providing a short description of the development, your agreement and any concerns helps match you with lawyers who regularly review off-the-plan contracts.
By outlining the type of property, expected completion date, deposit requirements and any variations from the standard agreement, you can connect with professionals who understand how these projects work in practice.