Statement of Compliance for Off-the-Plan Buyers Victoria

By Pearson Chambers Conveyancing.
Published 30th April 2026

We get this question from Melbourne buyers who signed an off the plan contract months ago and are now being told settlement is still waiting on a ‘Statement of Compliance’. It sounds like paperwork, but it can be the final gate between a finished building and a title you can actually settle.

The short answer: A Statement of Compliance is issued by the local council under section 21 of the Subdivision Act 1988 (Vic), once council is satisfied that subdivision requirements and relevant permit conditions have been met. Without it, the plan cannot be registered at Land Use Victoria, the individual lot does not yet exist as its own title, and your off the plan contract usually cannot settle. Once registration occurs, settlement is usually due within the timeframe set by your contract, often 14 days after notice of registration.

What is a Statement of Compliance in Victoria?

A Statement of Compliance is council’s formal sign off that the subdivision is ready to move from paper plan to registered title. It tells Land Use Victoria that the council is satisfied the legal, planning and referral authority requirements for the subdivision have been dealt with.

For off the plan buyers, this matters because the plan of subdivision is the document that creates the lots, common property, easements and owners corporation arrangements. Until that plan is registered, your apartment, townhouse or house and land lot is not yet a separate title.

That is why off the plan conveyancing in Melbourne feels so different from buying an established home. You may have signed a binding contract under the Sale of Land Act 1962 (Vic), paid a deposit and waited through construction, but the land title system still needs the subdivision process to finish before settlement can happen.

Why can’t my off the plan property settle without it?

Settlement usually cannot happen because there is no individual folio of the Register for your lot until the plan is registered. Your conveyancer cannot transfer a title that does not yet exist, and your lender cannot register a mortgage over a lot that Land Use Victoria has not created.

This is the practical chain:

The developer completes the required subdivision works and paperwork.
Council issues the Statement of Compliance.
The plan is lodged for registration at Land Use Victoria, usually through SPEAR.
New titles are created for the lots.
The vendor gives notice that the plan is registered.
Settlement is triggered under the contract.

Before registration, a PEXA settlement workspace may not have the final title details needed to complete the transfer. That does not mean the buyer has done anything wrong. It usually means the transaction is waiting for the land registration process to catch up with the building or estate works.

What does council check before issuing a Statement of Compliance?

Council checks whether the subdivision requirements have been satisfied, including planning permit conditions, authority consents and works linked to the plan. The exact list depends on the permit, the land and the type of development.

Common items include:

Civil works: roads, drainage, kerbs, footpaths, street lighting, accessways and other works required by the permit.
Service authority requirements: water, sewerage, electricity, gas and telecommunications consents.
Public open space contributions: land, money or a mix of both, where required under the Subdivision Act.
Easements and reserves: correct recording of drainage, sewerage, carriageway or service easements, plus any land to vest in council or another authority.
Section 173 agreements: planning agreements that must be signed, lodged or ready for registration before compliance is given.
Bonds or agreements for incomplete works: where council allows some works to be secured and finished later.

For a CBD apartment tower, the focus may be on the plan, common property, service connections and owners corporation set up. For a new estate in Tarneit, Clyde North, Wollert or Mickleham, the bigger delay may be roads, drainage, water authority sign off or staged civil works.

Which permit conditions usually hold up a Statement of Compliance?

The delay is often sitting in one condition on the planning permit. Subdivision permits often say that something must be done ‘prior to the issue of a Statement of Compliance’, which means council cannot sign off until that item is complete or properly secured.

Watch for conditions dealing with:

construction of roads and drainage;
connection to reticulated water and sewerage;
landscaping or public open space works;
engineering plans and as constructed drawings;
Section 173 agreements;
referral authority approvals;
owners corporation documents for apartment projects.

We’ve seen this come up when a buyer has been told, ‘settlement is close’, but the permit still requires a drainage authority consent or a Section 173 agreement before council can issue the Statement of Compliance. To the buyer, it feels like a mystery delay. To the conveyancer, it is usually a specific condition that needs chasing.

Can buyers track a Statement of Compliance through SPEAR?

You may be able to track parts of the process through SPEAR, Victoria’s online system for subdivision planning permits, certification applications, referrals and registration lodgements. SPEAR lets applicants, councils, referral authorities and lodging parties manage subdivision steps online.

A buyer will not always have full access to every document, but the application reference can still be useful. Ask the vendor’s solicitor or developer’s representative for the SPEAR reference number. Your conveyancer can then check whether the application appears to be with council, a referral authority, the surveyor or Land Use Victoria.

This matters because ‘waiting on council’ is sometimes too vague. The SPEAR record may show that council asked for further information, a water authority has not consented, or the plan has moved to the registration stage. That changes the next question your conveyancer asks.

What should growth area buyers know about GAIC?

If the land is in a declared growth area, the Growth Areas Infrastructure Contribution may need to be dealt with before the plan can be registered. GAIC is a charge connected with land in Melbourne’s growth areas and can arise when land is bought, subdivided or developed.

This is most relevant for buyers in parts of councils such as Casey, Cardinia, Hume, Melton, Mitchell, Whittlesea and Wyndham. Not every property in those areas is affected, so the Section 32 and title documents need to be checked carefully.

For buyers, the key questions are simple:

Does GAIC affect this land?
Has it been paid, deferred or marked as not applicable?
Is any deferred amount connected with the lot being purchased?
Does the Section 32 disclose the position clearly?

If GAIC is deferred, it may appear as a charge or notice connected with the land. Your conveyancer should explain whether it is a developer issue, a title issue or something that could affect your settlement documents.

Is a Statement of Compliance the same as an Occupancy Permit?

No. A Statement of Compliance and an Occupancy Permit do different jobs, even though buyers often hear about them at the same time.

A Statement of Compliance is issued by council under the Subdivision Act. It deals with the subdivision and supports registration of the plan.

An Occupancy Permit is issued by a building surveyor under building legislation. It deals with whether the building is suitable to occupy.

For an off the plan apartment, you usually want both pieces to be in order before settlement. The Statement of Compliance helps create the title. The Occupancy Permit helps confirm the building can be occupied. If one is missing, your conveyancer should ask careful questions before recommending settlement.

What happens if the sunset date passes?

If the sunset date passes and the plan has not registered, the contract needs careful review before anyone takes action. In Victoria, residential off the plan sunset clauses are controlled by the Sale of Land Act, and vendors cannot simply walk away because the sunset date has passed.

For a vendor to rescind under a sunset clause, they generally need to give written notice explaining the delay and obtain either the purchaser’s written consent or a Supreme Court order. A buyer may have their own rescission rights if the plan is not registered by the time required by the contract or the statutory default period.

This is where advice matters. Market value may have moved, finance may need updating, and the developer’s reason for delay may not be clear. If you are facing off the plan settlement delays in Victoria, speak to your conveyancer before signing anything from the vendor’s solicitor.

What should your conveyancer do while everyone waits?

A good conveyancer should not simply wait for the vendor to announce registration. The waiting period is when small issues can be picked up before they turn into urgent settlement day problems.

Your conveyancer should be:

checking the SPEAR status or asking the vendor’s solicitor for updates;
reviewing the sunset date and any notice served by the vendor;
comparing the final or certified plan against the contract plan;
checking for material changes to the lot, common property or owners corporation set up;
confirming whether GAIC, easements, restrictions or Section 173 agreements affect the lot;
reviewing final owners corporation documents for apartment purchases;
helping you keep finance approval current;
watching for caveats and other settlement day surprises.

The big risk is assuming delay means nothing can be done. Sometimes that is true. Other times, the delay reveals a contract issue, a changed plan, a lender timing problem or a title matter that needs to be dealt with before settlement is called.

Frequently asked questions

Who issues the Statement of Compliance in Victoria?

The local council usually issues the Statement of Compliance for a subdivision, acting as the responsible authority. Council will work through the relevant subdivision requirements, planning permit conditions and referral authority consents before signing off.

How long does a Statement of Compliance take in Victoria?

There is no single fixed timeframe for a Statement of Compliance because it depends on the permit conditions, civil works, authority consents and whether the developer has lodged everything needed. Some projects move quickly once works are complete, while growth area estates and larger apartment projects can take much longer. Your conveyancer should ask what condition or consent is holding up the file.

Can I settle off the plan before the Statement of Compliance is issued?

No. Without the Statement of Compliance, the plan cannot proceed to registration, the separate title has not been created, and there is no individual lot for your conveyancer to transfer. Your contract may use its own wording, so have it checked before relying on any general rule.

What happens if the sunset date passes and the Statement of Compliance still has not issued?

If the sunset date has passed and the plan is still not registered, the buyer may have rights to rescind, depending on the contract and the Sale of Land Act. A vendor in a residential off the plan contract generally cannot rescind under a sunset clause without following the statutory notice process and obtaining the buyer’s consent or a Supreme Court order. Get advice before agreeing to extend, rescind or vary the contract.

Is the Statement of Compliance the same as the Occupancy Permit?

No. The Statement of Compliance relates to the subdivision and registration of the plan. An Occupancy Permit relates to the completed building and whether it can be occupied. Off the plan apartment buyers usually need both issues checked before settlement.

Do I get interest on my deposit while waiting for the Statement of Compliance?

Your deposit is usually held in a trust or controlled money account unless you have agreed to early release. Whether interest is payable to you, and how it is dealt with at settlement, depends on the contract and how the deposit was held. Ask your conveyancer to check the deposit and interest clauses before settlement.

About the Pearson Chambers Conveyancing team

Pearson Chambers Conveyancing is a Melbourne focused conveyancing team that works with first home buyers, off the plan purchasers and house and land buyers across Victoria. We help clients understand contracts, Section 32 statements, subdivision documents, owners corporation papers and settlement steps in plain English. Statement of Compliance delays are part of our day to day work on off the plan files, especially where buyers need clarity before the vendor calls for settlement.

Sources we consulted

Need help with an off the plan contract or delayed settlement?

If you are waiting on a Statement of Compliance, facing a sunset date, or trying to understand what the developer’s solicitor is telling you, Pearson Chambers Conveyancing can help you work through the contract and next steps.

We offer a complimentary Section 32 contract review for Melbourne and Victorian buyers. Email contact@pearsonchambers.com.au and we’ll help you understand what is holding up settlement and what to watch before you sign or settle.

General information only, current as at the date of publication. Victorian conveyancing rules and legislation change frequently. Please contact the Pearson Chambers Conveyancing team for advice on your specific contract.