The Queensland Government has recently passed new laws that limit when sellers can invoke a sunset clause to terminate a sale of contract.
The changes, which began on 22 November 2023, mean sellers can only use sunset clauses to terminate contracts of sale for land sold ‘off the plan’ in the following situations:
- with the written consent of the buyer, or
- under an order of the Supreme Court.
Previously, sellers could generally terminate a contract of sale for land bought ‘off the plan’ if it included a sunset clause and didn’t settle by the specified date.
These new laws apply to:
- existing ‘off the plan’ contracts for the sale of land that were signed but not settled by 22 November 2023; and
- new ‘off the plan’ contracts for the sale of land signed on or after 22 November 2023.
Sellers will still be able to include sunset clauses in their contracts but must abide by the new laws and obtain the buyer’s written consent or an order of the Supreme Court to invoke them.
The government intends to commence a review of the changes in one to two years, and will consider if further reforms are needed around buying proposed community titles and similar lots ‘off the plan’, such as apartments and townhouses.
Further information about buying off the plan and selling and subdividing land can be found the Office of Fair Trading website.