Background

An ‘off the plan’ residential property sales contract typically refers to a contract for a proposed lot, such as:
· land that is not yet registered – for instance, a block of land in a new housing estate; or
· a lot, proposed to be included in a community titles scheme, that has not yet been built or is still being built – for instance, an apartment in a multi-story building that is under construction.

A ‘sunset clause’ typically refers to a term in a contract that allows a buyer or a seller to terminate the contract if the contract does not settle by a specified date. In ‘off the plan’ contracts for land, settlement can only occur once the proposed land is registered and the title to the land can be transferred to the buyer.


Law changes made in 2023
In Queensland, following legislative reforms that commenced on 22 November 2023, sellers (property developers) can only use sunset clauses to terminate ‘off the plan’ contracts for land in the following circumstances:
(i) with the written consent of the buyer; or
(ii) under an order of the Supreme Court; or
(iii) in another situation prescribed by regulation.

These laws apply to ‘off the plan’ contracts for the sale of land that were entered into:
· on or after 22 November 2023; or
· before 22 November 2023, which had not settled immediately before this date.
The laws were intended to provide greater consumer protection for buyers.
These laws do not apply to sunset clauses contained within building contracts, even when these terms are part of a linked land and house building contract, or a single ‘house and land’ contract.


Why your views are being sought
The Queensland Government is seeking your views to help determine whether the 2023 sunset clause reforms are working effectively.
Please note all responses are anonymous.
Please press next to start the survey and provide your views.

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