What the Beulah collapse reveals about off-the-plan buyer protections

What the Beulah collapse reveals about off-the-plan buyer protections

A Melbourne tower project has stalled, leaving off-the-plan buyers with $650 million in deposits locked up and years of uncertainty ahead. A contract law expert at RMIT explains why this isn't just bad luck and what prospective buyers should do to protect themselves.

Dr Vivi Tan, Lecturer in Law, RMIT School of Law:

“Every individual element of this case is technically legal. However, when you combine them in an insolvency scenario, the purchaser bears almost all of the downside with almost none of the protections they likely assumed they had. That's a regulatory design failure, not just bad luck.

“A buyer's main exit is typically the sunset clause — and this can be set years away. With rights to terminate often narrowly defined and off-the-plan contracts typically unconditional from day one, buyers are committed long before they know whether their circumstances, or the project, will pan out as expected.

“Australian Consumer Law may offer some protection in certain cases. But if the developer is insolvent, you can have a perfectly valid legal right and nothing to enforce it against.

“The regulation of off-the-plan sales sits awkwardly across property law, contract law, consumer law, and insolvency law, with no single framework pulling it together.

“For prospective buyers, due diligence before signing is critical. That means independently reviewing the contract with a lawyer, understanding the sunset clause, researching the developer's track record and financial standing, and asking hard questions about who holds deposits and under what conditions the deposits can be released.”

Dr Vivi Tan is a Lecturer in Law at RMIT University, specialising in contract law and consumer protection.

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General media enquiries: RMIT External Affairs and Media, 0439 704 077 or news@rmit.edu.au

22 June 2026

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22 June 2026

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