The Queensland Government is working to make amendments to land sales legislation, which will affect sunset clauses in off the plan sales contracts.
A sunset clause in an off the plan sales contract provides a party with the right to terminate if the contract is not settled within a particular time frame.
Earlier this year, former Queensland Attorney-General, Shannon Fentiman, said the state’s building industry was facing several hurdles.
“Since the pandemic, the industry has faced difficulties with supply chain issues, labour shortages and increased costs for building supplies,” she said.
“This is combined with increasing interest rates and soaring property prices.
“Following these challenging market conditions, there have been several reports of developers invoking a sunset clause to terminate an off the plan contract, allegedly in order to re-list and sell the proposed lot for a much higher price.”
Changes to the legislation will make sure property developers can only invoke a sunset clause to terminate off the plan contracts for land in specific situations.
This includes:
- with the written consent of the buyer; or
- under an order of the Supreme Court; or
- in another situation prescribed by regulation.
“While property development is a vital part of the Queensland economy – we also need to make sure Queensland buyers are protected when they purchase land off-the-plan,” Ms Fentiman said.
“We know property law is a complex and technical area that differs between states and territories, and we have listened to home buyers and property developers to ensure these changes reflect both party’s needs.”
If you as a buyer are concerned that your off the plan residential property contract may be terminated in the future, we strongly advise seeking legal advice.
Here at GLG Legal, we are across all the latest changes to property and contract legislation and are in the best position to help you. Contact us for a consultation here at GLG Legal Springfield on (07) 3288 3511.