This article is from the Australian Property Journal archive
THE Queensland government is mulling reforms to better protect property buyers who have signed an off-the-plan contract, pointing to recent reports of developers terminating sales contracts that are not settled within a specific timeframe.
Two online surveys – one for buyers and one for property developers – will examine the use of sunset clauses by property developers to terminate contracts and early release of buyer deposits to developers as part of the property law review.
Attorney-General and Minister for Justice Shannon Fentiman said she has listened to the concerns of buyers around off-the-plan contracts, including the impact of seller-supported sunset clauses on Queensland buyers.
“Since the pandemic we have seen more people move to Queensland, resulting in growing property sales including buying off-the-plan developments,” Attorney-General Fentiman said.
“I am aware of recent reports of developers terminating contracts for “off the plan” sale of land if the contract is not settled within a specified timeframe.
“At the same time, property prices have been rising, which may leave these buyers with limited or no options within their budget.
Member for Gaven Meaghan Scanlon said since the pandemic more people were moving to the Gold Coast, resulting industry planning for and developing more housing supply.
“Buying a home is one of the biggest decisions and investments Queenslanders will make in their lifetime – so it’s really important that they’re protected when entering a contract for an off-the-plan development.”
Both surveys can be taken on the Office of Fair Trading website.
The Attorney-General recommended caution when signing a purchase contract.
“Off-the-plan residential property contracts are complex and involve non-standard terms,” she said.
“They also involve risks for both the developer and buyer, such as changing property values over the period of the contract.
“I strongly urge anyone looking to buy off the plan to seek legal advice before signing a contract.”
The consultation is open to the public and property developers, it will close on 14th September.
Separately, a review of the role of developers in the building and construction industry is being undertaken by the Developer Review Panel, focusing primarily on security of payment, and building quality and safety outcomes.
