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ARTICLE · 02 SEPTEMBER 2023

Queensland curbs developer rights in sunset clauses

Clifford Gouldson Lawyers
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These proposed changes follow moves in other States to limit developers' rights of termination under sunset clauses.

AustraliaReal Estate and Construction
Amanda Tolson
Amanda Tolson
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After seeking feedback from developers and buyers, the Queensland Government has introduced a bill that if passed, will severely restrict the ability of developers to terminate off-the-plan land sale contracts and options to purchase under sunset clause provisions.

Typically, off-the-plan contracts contain a sunset date clause whereby either party may terminate the contract if the plan has not been registered or settlement has not occurred by a particular date. The proposed laws will limit the developer's rights of termination (but not the buyer's), to prevent or restrict the developer from terminating contracts only to enter into new contracts with higher purchase prices, leaving the original buyers without a property to purchase (or being forced to purchase at a higher price in the then-current market).

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