Investors Buying Off the Plan in Queensland

What Queensland law fixes at each step, from the papers you get before you sign to the day the lot settles.

This guide is for investors who sign before the lot's title exists and, where there's a building, before it's finished. In Queensland a house-and-land lot like that sits under the Land Sales Act 1984. A build contract on a lot that's already titled isn't covered by the Land Sales Act. Our house-and-land contracts guide covers that case. That Act sets the seller's deadline to settle and the rules on where your deposit is held. The 2023 limits on sunset clauses cover land contracts, not apartments in a community titles scheme. FAA Property is a licensed Queensland real estate agency, licence 4220395, and sources new-build and house-and-land investment property across South East Queensland. Once you know which clauses to ask about, you can ask us about new-build options.

You sign the contract today. On a house-and-land lot the title may not exist yet, and the seller has up to 18 months to settle. Queensland law fixes four things along that stretch: what you're given before you sign, where your deposit sits, what happens if the lot changes and when a seller can use a sunset clause.

Every section below assumes a proposed lot, one whose title hasn't been created yet. Units get one comparison, because they run under a different Act.

By Kayla Dale, Senior Property Manager and Sales Agent, FAA Property. Last reviewed 6 October 2026. Reviewed against ASIC MoneySmart and ATO guidance, 6 October 2026.

Which Queensland law covers your off-the-plan contract

Queensland's Office of Fair Trading describes buying off the plan as signing before the building is out of construction, where there is one, and before the lot's title has been created. So a house-and-land lot in a new estate, bought before its plan of survey is registered, is off the plan too.

The Act depends on what you're buying. The Land Sales Act 1984 covers a 'proposed lot', meaning land that becomes a lot once a plan of survey is registered under the Land Act 1994 or the Land Title Act 1994. Units and townhouses in a community titles scheme are left out of that definition. They sit under the Body Corporate and Community Management Act 1997 instead. Two Acts. Two sets of deadlines. That's why a house-and-land lot and an apartment, both bought off the plan, can come with different rights.

One exception for your solicitor to check: the Land Sales Act doesn't apply to a lot from land split into five lots or fewer, or to six or more lots sold by the same seller to the same buyer in one contract or in contracts signed within 24 hours of each other.

The Queensland Government's list of off-the-plan risks is short, and it comes from the Office of Fair Trading, not a seller. You can't see the finished result until after you've bought. Building can run later than expected. Prices can move between the day you sign and the day the contract settles. Some contracts have clauses that let the deal be cancelled. Our page on house-and-land investment packages covers the product side.

Before you sign: the disclosure plan and statement

For a proposed lot, the seller has to give you either a disclosure plan and statement, or the approved plan of survey, before you sign. If you got neither, you can end the contract by written notice before settlement.

The disclosure pins down the lot: its number, total area and which way it faces, measured from north. Queensland's Office of Fair Trading says a section of the disclosure statement must be completed by a cadastral surveyor, explaining the lot's state at handover and any planned earthworks. Use it to check the lot you're paying for before you sign. If the disclosure plan turns out to be inaccurate, the seller has to give you a further statement at least 21 days before settlement.

The statement must say whether development approval has been granted for creating the lot and for any operational work, and that the seller has to settle within 18 months.

Building on the lot? QBCC's licensee register shows a contractor's full licence history. If they're not on it, they may not be licensed, and QBCC on 139 333 can confirm. The Queensland Government strongly recommends specialist legal advice before you sign or pay a deposit. See the Queensland cooling-off period and how house-and-land contracts are split.

Contract day: where your deposit sits

Money you pay towards a proposed lot before settlement must go to a Queensland law practice or a real estate agent named in the contract, or otherwise the public trustee. It's held in a prescribed trust account. That includes money paid under an option or an expression of interest.

The 2023 reforms confirmed sellers can't get early access to off-the-plan deposits. The money leaves trust to the seller only at settlement, or if the contract ends some other way and the seller is entitled to it. A contract clause can't get around that. A proposed-lot contract is void to the extent it tries to override the Land Sales Act.

One more clock starts here. Transfer duty documents must be lodged within 30 days of the liability arising, usually when the contract is signed or becomes unconditional. Rates and concessions are in our guide to stamp duty on an investment property.

While the lot is registered: changes and the 18-month limit

The wait for title is where things can move. If the disclosure plan was or becomes inaccurate, the seller must give you a further statement from a cadastral surveyor at least 21 days before settlement. If the change leaves you materially prejudiced (meaningfully worse off), you can end the contract by written notice within 21 days of getting it, or longer if you agreed to that.

If you weren't given an approved plan of survey before signing, the seller must give you the registered plan and a surveyor's statement that it matches the disclosure plan, at least 14 days before settlement.

Then the outer limit. The seller must settle within 18 months of the contract. If they don't, and you're not in default, you can terminate by written notice before settlement. The Act gives the seller no matching right after 18 months, though a seller can write one in as a sunset clause.

Terminate under these rules and the seller must repay what you paid, plus interest earned while it was held, within 14 days. It's recoverable as a debt.

Sunset clauses since November 2023

A sunset clause lets a contract end if the lot isn't ready by a set date. Since 22 November 2023, Queensland limits how sellers of off-the-plan land can use one.

It can't end your contract automatically. A seller can terminate under it only with your written consent after a sunset clause notice, under a Supreme Court order, or in another way set by regulation. The notice must be in writing, at least 28 days before the sunset date. If you don't respond, you're not taken to have agreed. Get legal advice on your reply.

In court, the seller has to show that ending the contract is just and equitable, and pays your costs unless you unreasonably withheld consent.

The rules cover land contracts signed from 22 November 2023, plus earlier ones not settled by then. They're also under review. The Queensland Government opened a review on 1 September 2025, with consultation closing 10 October 2025. When we checked on 6 October 2026, the in-force Act still had the rules, with no change from the review. Check the current law before you sign.

Settlement day: finance, valuation and the first rent

This section is general information about finance. Get credit advice for your own situation. Financial advice and credit sit with other FAA Group companies, not FAA Property. Credit assistance is provided under Australian Credit Licence 388789, which authorises credit services only. FAA is not a lender.

ASIC's Moneysmart says loan pre-approval lasts 3 to 6 months and doesn't commit you to a loan. On a land contract with an 18-month limit, pre-approval from contract day can lapse before you settle. The NSW Government says that if you need to borrow to complete, you must be confident of getting finance when the time comes, which may be months or even years after you agree to buy.

Value matters too. Consumer Affairs Victoria lists a property worth less at settlement than the contract price as an off-the-plan risk, along with loan trouble if the value falls or completion moves. Lenders differ.

Moneysmart also warns that if values fall you could owe more than the property is worth, and says not to rely on rent to cover the mortgage, because the property may sit empty at times. The ATO's capital works deduction for residential construction started from 16 September 1987 is 2.5% a year over 40 years, claimable only once construction is complete. For cash versus tax once rent starts, see positive cash flow property.

If a new build closer to completion suits you better, see our guide to new-build investment property in Queensland.

Where the 1 July 2027 new-build rule stands

From 1 July 2027, negative gearing for residential property is limited to new builds, and the ATO describes the measures as law. They were enacted by the Treasury Laws Amendment (Tax Reform No. 1) Act 2026. Properties held at the announcement, 7:30pm AEST on 12 May 2026, are exempt. Treasury says new builds can keep being negatively geared before and after 1 July 2027. Investors who buy established housing after 12 May 2026 can't deduct losses against non-residential income such as wages, though they can carry losses forward.

What counts as new was still a draft when Treasury put it out for comment. Exposure drafts released on 4 August 2026 propose that a property is generally new if it genuinely adds to housing supply and is bought within 24 months of a certificate of occupancy being issued. Consultation closed on 21 August 2026, and the final definition is to go into primary legislation after consultation. Treat the 24-month test as a proposal from those drafts, not settled law. Don't assume an off-the-plan or house-and-land purchase qualifies until the final law says so.

New-build investors will also choose between the 50% CGT discount and new inflation-based arrangements for gains from 1 July 2027. See what counts as a new build and negative gearing in Australia.

What can go wrong

• You signed without a disclosure plan and statement or an approved plan of survey.

  Why it happens:

  The Land Sales Act requires the seller to give either a disclosure plan and statement, or the approved plan of survey, before the contract is entered into.

  Why it matters:

  Without the disclosure plan and statement, you can't check the lot number, area, orientation or handover state you're paying for.

  What you can do:

  If you got neither, you can end the contract by written notice before settlement. Ask your solicitor before you act.

• The lot you get isn't the lot on the plan.

  Why it happens:

  A disclosure plan can be inaccurate or become inaccurate while the plan of survey is registered.

  Why it matters:

  The Act's own example is a change in the depth of fill the lot needs, which the further statement must explain in plain English.

  What you can do:

  Read the surveyor's further statement when it arrives. If you're materially prejudiced, written notice within 21 days can end the contract.

• The seller sends a sunset clause notice.

  Why it happens:

  A contract can carry a sunset clause even though the Act gives no right to terminate after 18 months.

  Why it matters:

  Termination needs your written consent, a Supreme Court order or a route set by regulation, and staying silent isn't consent.

  What you can do:

  Get legal advice before you reply. A seller going to court pays your costs unless you unreasonably withheld consent.

• Settlement drags past 18 months.

  Why it happens:

  Registration can run late, and building delays are on the Queensland Government's list of off-the-plan risks.

  Why it matters:

  Your money sits in trust and no rent comes in until settlement.

  What you can do:

  If the seller hasn't settled within 18 months and you aren't in default, you can terminate and get your money back with interest within 14 days.

• Your pre-approval runs out before settlement.

  Why it happens:

  Moneysmart says pre-approval lasts 3 to 6 months, and a land contract can run up to 18 months.

  Why it matters:

  Finance has to be confirmed when settlement arrives, which may be months or years after you sign (NSW Government).

  What you can do:

  Talk to a credit adviser about timing near settlement. This is general information, not credit advice.

• The valuation comes in under the contract price.

  Why it happens:

  Consumer Affairs Victoria lists a lower value at settlement than the contract price as an off-the-plan risk.

  Why it matters:

  A lower value can make the loan harder to approve, and a fall in value can leave you owing more than the property is worth.

  What you can do:

  Get credit advice on your own position before you sign. Lenders differ.

Questions investors ask about buying off the plan

Where to next

• Dual key vs dual occupancy vs duplex
• New-build investment property in Queensland
• House-and-land investment packages