Off Plan Contract Clauses: What to Check Before You Sign

In an off plan contract, check the description and specification, price and payment schedule, completion and long-stop dates, delay remedies, force majeure, price variation, cancellation and refund terms, and the handover and snagging process. Have an independent lawyer read the full document, including appendices, before you pay anything beyond a reservation fee.

Why the contract matters more than the brochure

Before completion, the contract is what you own. It is the only place where the developer’s promises become obligations. Off Plan Properties’ SPA guide makes the same central point: have the agreement reviewed independently before signing. Figures below come from that guide and are its estimates; contract norms differ by country.

Clauses to read line by line

Description and specification

The contract should identify the unit by number, floor and area, and attach a specification naming finishes, appliances and fittings. Be suspicious of “or equivalent” wording, which lets the developer substitute cheaper items, and of brochure images that are not part of the contract. If it is not written down, you cannot enforce it.

Price and payment schedule

Look for a fixed price, the amount and timing of every instalment, and whether payments are tied to construction milestones or simply to dates. Front-loaded or purely time-based schedules push risk onto you. The contract should also say which account receives each payment. Read our notes on off plan payment plans and escrow accounts.

Completion date, grace period and delay

A good contract names a specific completion date, limits any grace period, requires notice of delays and gives you compensation or a right to cancel if the developer overruns. The SPA guide cites grace periods commonly in the 3-6 month range and sample delay compensation per day, but it presents these as examples. Treat any figure as a negotiating reference, not a rule.

Force majeure

This clause excuses delay for events outside the developer’s control. It should be limited to genuinely unforeseeable events. Weather, labour disputes, financing problems and general economic change should not be covered; otherwise the completion date means little.

Price variation and substitutions

Minor changes may be reasonable. Material changes, such as a smaller unit or fewer amenities, need your written consent. The guide’s examples include a cap on price increases and thresholds for material change. An unlimited right to adjust price is listed among its dangerous clauses.

Cancellation and refunds

Check what you forfeit if you cancel, what you receive if the developer cancels, how fast refunds are paid and whether interest applies. Also check whether you can assign the contract to another buyer, which matters if you might sell before completion.

Handover and snagging

The contract should give you time to inspect, a way to list defects, a period for the developer to fix them and ideally a right to hold back part of the final payment until they do. Without those terms, your leverage disappears once you pay.

Red-flag summary

Clause or situation	Why it is a concern
No specific completion date	No basis to claim delay
Unlimited price adjustment	Price can rise after you sign
“As-is” sale with no warranty	You bear defect risk
Developer may assign without your consent	You may end up dealing with an unknown party
Remote or unfavourable dispute venue	Hard and costly to enforce
No refund if developer cancels	Your deposit is exposed
Refusal to let a lawyer review	A serious warning sign
Handwritten changes not initialled	Disputes over what was agreed

Key takeaway: every promise that matters to you should be in the signed contract in specific words. If a salesperson says it, ask for it to be added.

Negotiating sensibly

Get your lawyer to identify issues, then pick the handful that matter most: delay remedies, price variation, refund terms and specification wording. Bundle requests and be willing to walk away if essential protections are refused. Leverage tends to be greatest in early launches, with slow sales, and for cash or bulk buyers, as the SPA guide notes.

Mistakes to avoid

• Signing without legal review
• Skipping appendices and payment schedules
• Accepting “standard terms” without question
• Paying before verifying the account
• Signing under deadline pressure

Pressure tactics are a reason to slow down, not speed up. If a unit is available only if you sign today, consider that it may not be the right unit.

Putting it into the wider process

Contract review is stage four in how to buy off plan property, and it works together with developer research, covered in how to check a property developer. A strong contract with a failing developer does not help you much, and a good developer with a weak contract leaves you exposed. For more on each risk, see off plan property risks, or browse the publisher’s investment guides. Always confirm with a qualified local lawyer, since contract law and mandatory buyer protections differ by country.

Reading the contract with a lawyer

Prepare for the meeting. Bring the full contract with appendices, the payment schedule, the brochure and any messages from sales staff that contain promises. Ask the lawyer to explain, in plain language, what happens in each of these cases: the developer is six and twelve months late; the developer cancels; you cannot pay an instalment; you want to sell; the finished unit is smaller than stated; and the developer becomes insolvent. A clear answer for each shows you where the contract protects you and where it does not.

Ask also about the governing law and dispute venue. A contract governed by the law of another place, with disputes heard far away, can make enforcement slow and costly. The publisher’s guides library includes an insolvency protection guide that is worth reading alongside your lawyer’s advice.

A short word list for contract reading

Term	Plain meaning
Long-stop date	The latest date before you may cancel
Grace period	Extra time allowed after the planned date
Force majeure	Excused delay from events outside control
Retention	Money held back until defects are fixed
Assignment	Transfer of the contract to someone else
Liquidated damages	A pre-agreed sum payable for delay

If any term in your contract is not clear to you after your lawyer’s explanation, ask for it to be reworded. Plain wording protects both sides, and a developer that refuses to clarify is telling you something. For the escrow side of payments, see our escrow article.