Sunset Dates: Indefinite Extensions Of Sunset Dates Are Unenforceable

The recent Supreme Court of Victoria decision of Clifford v Solid Investments Australia Pty Ltd [2009] VSC 223 (Cliffords Case) confirms that special conditions in "off the plan" contracts of sale need to be carefully reviewed to ensure compliance with the Sale of Land Act 1962 (Vic) (Act).

A sunset date condition is one which stipulates the date by which the registration of the plan of subdivision must occur as a trigger to calling for settlement. Failure to register by that date confers on a purchaser a right to rescind the contract. It is not unusual for a contract to provide for the vendor to extend the sunset date if registration of the plan is, or is likely to be, delayed as a result of certain events occurring, usually delay events.