Home Property Australia Queensland Government continuing to move on sunset clauses

Queensland Government continuing to move on sunset clauses

  • April 28, 2023
  • by Property Australia
The government is taking steps to regulate the termination of off the plan contracts.

The Queensland Government announced that they have commenced working on amendments to legislation regulating the termination of off the plan contracts via sunset clauses. 

Sunset clauses are conditions of a contract that allow for a party to withdraw from a contract on the basis that final settlement is not achieved within a given timeframe. There has been a lot of media reporting around this issue, however, sunset clauses are often confused with termination clauses and are rarely used by developers due to the legal ramifications of doing so.  

The Property Council does not support the introduction of new laws governing sunset clauses, such as those in place in New South Wales, the Australian Capital Territory and Victoria. We believe the current regulatory framework in Queensland adequately protects buyers and there would be little, if any, additional protection afforded by introducing such laws. 

You can find out more about sunset clauses here.  Â