How To Exit An Off‑The‑Plan Contract: Assign, Nominate or On‑Sell

You can sometimes exit an off‑the‑plan contract before settlement by assigning it to another buyer, using a nomination clause, or on‑selling with the developer’s written consent. But many contracts heavily restrict this, and you can still be on the hook if the new buyer falls over.

Here’s how each option works, the traps, and what you should check this week if you’re worried you won’t be able to settle.

Before assigning or on‑selling, have your contract reviewed by your solicitor, broker and accountant.

1. The three main ways to exit early

1. Assignment of contract

An assignment is where you transfer all your rights and obligations under the contract to a new buyer before settlement.

Key points:

• You stay the “original purchaser” until a valid assignment is executed and consented to.
• The incoming buyer usually pays you your deposit plus any uplift in price.
• The developer’s consent is almost always required and can be refused.

If you bought for $800,000 and assign for $820,000, the new buyer takes over your $80,000 deposit and pays you an extra $20,000 (less fees). You may still owe stamp duty on the $800,000 and tax on the $20,000 gain, depending on your state and your structure.

2. Nomination of purchaser

Some contracts allow you to “nominate” another purchaser before settlement.

A pure nomination is often treated as you never really being the final buyer, but in practice:

• Many nomination clauses are tightly drafted and still leave you liable if the nominee doesn’t settle.
• Some states and situations treat a nomination as a sub‑sale, triggering extra stamp duty or foreign buyer surcharges.
• Lenders want to see the final contract and may reassess the deal.

Never assume a nomination is tax‑ or duty‑free. Your solicitor must read the exact clause.

3. On‑selling with developer consent

In some projects, the developer will let you on‑sell your interest, often via their sales team.

Common conditions:

• You can only market through the developer’s agent.
• You may pay an assignment or marketing fee.
• Resale price may be controlled (e.g. not undercutting remaining stock).

This can work if market prices are flat or higher. If values have fallen, you’re often better off negotiating directly with the developer than trying to on‑sell.

For a deeper dive on what happens when values fall and valuations come in low, see What To Do When Your Off‑the‑Plan Valuation Comes In Low.