30/09/2026
Purchasing an off-the-plan property requires buyers to commit to a property before construction is completed. While this can provide opportunities to secure a property early, it also carries risks, including construction delays or the delivery of a property that differs from what was originally promised. In the ACT, buyers may have several rights to rescind an off-the-plan contract in certain circumstances. Below are some of the most common grounds for rescission.
Failure to Meet the Sunset Date
Off-the-plan contracts typically specify a sunset date by which the units plan must be registered. If registration does not occur by that date, the buyer may be entitled to rescind the contract and recover their deposit.
Before entering into an off-the-plan contract, buyers should carefully review the sunset date and consider whether the proposed timeframe, as well as any extension rights available to the seller, are acceptable.
Errors in the Property Description
If a buyer identifies an error in the description of the property before settlement, they may require the seller to rectify the issue. Where the error is not corrected, the buyer may be entitled to rescind the contract or proceed with settlement and seek compensation under clause 16 of the ACT Law Society Standard Conditions.
This protection can be particularly important where there are material discrepancies between the property contracted for and the property delivered, such as differences in floor area, room configuration or other significant features. Buyers should also ensure that clause 16 has not been excluded or amended by a special condition in the contract before exchange.
Misleading or Deceptive Conduct
Section 18 of the Australian Consumer Law prohibits misleading or deceptive conduct in trade or commerce. Buyers may have grounds to seek rescission where they relied on inaccurate representations made by a seller, developer or agent when entering into the contract.
However, many off-the-plan contracts contain “entire agreement” clauses that seek to limit reliance on statements made outside the contract. For this reason, buyers should ensure that any representations or promises that are important to their decision to purchase are expressly incorporated into the contract before exchange.
Changes to the Disclosure Statement
Under section 260 of the Civil Law (Property) Act 2006 (ACT), a seller must provide a disclosure statement before an off-the-plan contract is entered into. The disclosure statement contains important information about the proposed property and development.
If the seller becomes aware of a change or error in the disclosure statement, they must provide notice of that change within the prescribed statutory timeframes. A buyer may have grounds to rescind the contract where the disclosure statement is not provided, is provided late, or where undisclosed material changes result in material prejudice to the buyer.
Buyers should carefully review any disclosure update notices and seek legal advice where changes may affect the value, use or characteristics of the property.
Key Takeaways
Whether a buyer can rescind an off-the-plan contract will depend on the specific terms of the contract, the representations made during the sale process, and the seller’s compliance with contractual and legislative obligations. Understanding your rights before signing a contract can help you avoid costly disputes and protect your investment.
If you are considering purchasing an off-the-plan property, or believe you may have grounds to rescind an existing contract, our Property Team can assist. Contact us on (02) 6198 3100 or email property@griffinlegal.com.au for advice tailored to your circumstances.
