Sunset clauses in Queensland contracts
A sunset clause sets a date by which something must happen, failing which one or both parties can walk away. In Queensland they appear in two very different settings — off-the-plan contracts and subject-to-sale contracts — and the risks in each are quite different.
Written by Michael Klein, Legal Practice Director, admitted 2003 · General information about Queensland law · Last reviewed 2026
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Off-the-plan sunset dates
In an off-the-plan purchase, the sunset date is the outer limit for the developer to register the plan of subdivision or community titles scheme. If registration has not happened by that date, the contract typically allows either party to terminate and the deposit is refunded.
The obvious risk for a buyer is delay: your deposit is tied up for a year or more with no property and no interest. The less obvious risk is the sunset clause being used against you. In a rising market a developer who can resell for more has an incentive to let the date pass, terminate, and resell the same lot.
Protecting yourself in an off-the-plan contract
Read the sunset provisions before signing — they are heavily drafted in the developer's favour as a matter of course.
- Check whether only the seller can terminate, or both parties
- Check whether the seller can extend the sunset date unilaterally, and by how long
- Look for a requirement that the seller use reasonable endeavours to register by the date
- Confirm the deposit is held in a trust account, not released to the developer
- Check the tolerance clauses allowing the finished lot's area or layout to differ from the plan
- Note that a long sunset date means your finance approval and your duty concession position will both need to be revisited
Subject to sale contracts and the 48-hour clause
The second use is a contract conditional on the buyer selling their existing property by a nominated date. Sellers accept these when the market is slow, but almost always with a continuing right to market the property.
The mechanism is usually a 48-hour or 72-hour clause: if the seller receives another acceptable offer, they give notice, and the first buyer has that window to make their contract unconditional or lose it. If the buyer cannot waive the condition, the first contract ends and the second buyer proceeds.
For a buyer this means a subject-to-sale contract is not a secured purchase. For a seller it means you must follow the notice mechanics precisely, or you may find yourself bound to two contracts on the same property.
Getting the dates right
Whichever version applies, the dates do the work. A sunset date too close means an avoidable termination; too far away and you carry the risk for longer than you should. Finance approvals typically last three months, so a twelve-month sunset date guarantees a re-approval.
Off-the-plan contracts and subject-to-sale arrangements are the two places we most often see buyers lose money on paperwork rather than on the property. Send the contract before you sign — call 0488 340 853.
Sunset clauses — common questions
What is a sunset clause in Queensland?
A clause setting a date by which a specified event must occur — usually registration of the plan in an off-the-plan purchase — failing which the contract can be terminated and the deposit refunded.
What is a typical sunset date for an off-the-plan purchase?
It depends on the stage of the development, but eighteen months to three years is common for apartment projects and twelve to eighteen months for land estates. The longer the date, the longer your deposit and your finance position are exposed.
Can a developer use a sunset clause to cancel my contract and resell?
Some contracts allow the seller to terminate once the sunset date passes, and in a rising market that has been used to resell at a higher price. Check before signing whether the right to terminate is mutual and whether the seller must use reasonable endeavours to register on time.
What is a 48-hour clause?
In a subject-to-sale contract, it lets the seller keep marketing. If another acceptable offer comes in, the seller gives notice and the first buyer has 48 hours to make their contract unconditional or the contract ends.
Do I get my deposit back if the sunset date passes?
Under a standard off-the-plan contract, yes — the deposit is refunded on termination, without interest in most cases. Check where the deposit is held and whether the contract allows the developer to draw on it.
Should I sign a subject to sale contract?
It can be the only way to buy before selling, but understand that with a 48-hour clause you have not secured the property. Bridging finance or a longer settlement is often a stronger position if you can arrange it.
This guide is general information about Queensland law, current at the time of writing. It is not legal advice and does not take your circumstances into account. Call Coastside Law on 0488 340 853 for advice on your own matter.
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