New Protections for Buyers in Off-the-Plan Land Sales: Understanding Sunset Clause Cancellations in Queensland

Jun 08, 2024By Mint Legal Brisbane
Mint Legal Brisbane

In Queensland, new protections have been introduced for buyers in off-the-plan land sales. These changes focus on sunset clause cancellations, aiming to offer more security to buyers. Understanding these changes is crucial for anyone considering such a purchase.

What is a Sunset Clause?

A sunset clause sets a deadline for the completion of a property. If the developer does not finish the project by this date, either party can cancel the contract. This clause is common in off-the-plan contracts.

However, developers have sometimes used sunset clauses to cancel contracts when property values increase. This practice leaves buyers at a disadvantage.

sunset clause

New Protections for Buyers

Recent changes under a sunset clause.

If the buyer does not agree, the developer must obtain approval from the Supreme Court of Queensland. This process ensures that cancellations are fair and justified.

Steps a Developer Must Follow

  1. Notify the buyer of the intention to cancel the contract.
  2. Seek the buyer's consent for the cancellation.
  3. If the buyer does not consent, apply to the Supreme Court for approval.
legal process

For buyers, it is crucial to understand their rights and the steps developers must take. Consulting with a legal professional can provide further clarity and peace of mind.

Consulting a Legal Professional

If you are considering an off-the-plan purchase, it is wise to consult a lawyer. A legal professional can help you understand the contract terms and ensure your interests are protected.

At our law firm in Camp Hill, Brisbane, we specialize in property law. Our team can guide you through the complexities of off-the-plan contracts and sunset clauses.

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Thanks to the new legislation, buyers can make more informed decisions and safeguard their investments. If you need assistance, our experienced team is here to help.