This article is from the Australian Property Journal archive
CONSUMER protections for buyers of off-the-plan properties are being bolstered by the Queensland state government, following through on the promise to examine sunset clauses.
The Queensland government is working on amendments to land sales legislation across the state, in an effort to strengthen consumer protections for ‘off the plan’ residential property contracts for the sale of land.
Sunset clauses in off-the-plan sales enable a party to terminate if the contract is not settled within a set time frame.
This comes as the building industry has been dealing with challenges such as supply chain issues, labour shortages and increased costs of building supplies, since the onset of the pandemic.
Reportedly, these conditions when combined with record high interest rates and property prices, a number of developers have invoked 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.
“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,” said Shannon Fentiman, attorney general and minister for justice, women and the prevention of domestic and family violence.
“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 legislation is passed, property developers will only be able to invoke a sunset clause to terminate these contracts with the written consent of the buyer, under an order of the Supreme Court or in another situation prescribed by regulation.
“Buying a home is one of the biggest decisions and investments a Queenslander will make in their lifetime, and we want to ensure they are protected, and the process is fair,” concluded Fentiman.
