How Property Developers Trick First-Home Buyers Ft. Adam Farrell

Buying a property is one of the biggest financial decisions you’ll ever make. While many developers operate with integrity, there are some who use tactics that can leave unsuspecting first-home buyers at a disadvantage.

A sunset clause is a contract term that allows either the buyer or the developer to cancel the agreement if the development is not completed by a specified date. While this clause exists to protect buyers from being locked into an indefinite contract, some developers manipulate it to their advantage.

During previous property booms, some developers deliberately delayed projects so they could cancel existing contracts, refund deposits, and then resell properties at much higher prices. This left buyers in the difficult position of having to re-enter the market at inflated prices.

How to protect yourself:

• Always get a specialist property lawyer to review the contract before signing.
• Ensure the sunset clause has reasonable terms (typically 12-18 months is standard).
• Understand whether both parties or just the developer can invoke the clause.

This clause allows developers to replace materials specified in the original contract with alternatives if the original materials become unavailable. While this can be beneficial (e.g., during supply chain disruptions), some developers exploit this clause to cut costs and reduce quality.

Key risks:

• Substituting high-end appliances or finishes with cheaper alternatives.
• Changing the look and feel of the property without buyer approval.

How to protect yourself:

• Ensure the contract specifies like-for-like substitutions.
• If possible, require buyer approval for any changes.
• Work with a property solicitor to ensure the wording protects your inter

Marketing descriptions can sometimes be misleading. A “two-bedroom” property may actually be a one-bedroom plus a study. A “spacious” apartment might have impractical layouts. One of the most common tricks is listing properties without including all details—sometimes even omitting key features like parking or extra bathrooms.

How to protect yourself:

• Always check the floor plan and confirm the size of rooms.
• Visit the property in person or get independent advice.
• Read the fine print carefully—don’t rely solely on real estate listings.

New builds are legally required to have a 12-month defect warranty. However, some buyers hesitate to raise concerns about minor issues, not realizing they have the right to demand fixes before settlement.

How to protect yourself:

• Treat your pre-settlement inspection like picking up a brand-new car—if something isn’t right, insist on fixing it.
• Document all defects (even small ones) and formally request remediation.
• Work with a buyer’s agent or mortgage broker who can advocate on your behalf.

Many buyers assume developers won’t negotiate, but in the current market, they often will. Developers have sales targets, finance deadlines, and inventory they need to move.

Ways to negotiate:

• Ask for price reductions, particularly if you’re an early or late-stage buyer in a development.
• Request extras like appliances, air conditioning, or landscaping.
• Consider negotiating on settlement terms, such as deferred payments or incentives.

Buying a property—especially from a developer—can be tricky. Having the right advice can save you tens of thousands of dollars and protect you from costly mistakes. A specialist buyer’s agent, like those at Lighthouse Property, can help you navigate the process and ensure you’re making a sound investment.

If you’re thinking about buying in 2025, now is the perfect time to start planning. Get in touch with Lighthouse Property today to discuss your strategy and find the right property for your goals.