What is a sunset clause?

It's the clause in an off-the-plan contract that sets a deadline, called the sunset date. If the developer hasn't registered the plan (or finished the building) by that date, the contract can usually be ended. It protects you from waiting forever for a project that stalls.

Usually either party can end the contract and your deposit is refunded. The exact rights depend on the wording of your contract and the law that applies, so get advice before you give or accept any notice.

Some contracts allow extensions for delays such as bad weather or supply problems. Queensland law limits how far a developer can push the date out and how they can use a sunset clause to end a contract. Read the extension clause carefully before you sign.

If prices have risen since you signed, a developer could, in theory, benefit from ending your contract and reselling for more. That's why the law restricts this, and why you should have the sunset clause checked before signing.

The sunset date and any extension rights, how long your deposit is held and where, what can change in the final plan, the body corporate budget, and when you have to settle after registration. We review these as part of our free contract review.