Sunset clauses off the plan: when a developer can walk away

Buying off the plan means buying a promise: pay a deposit now, settle when the building exists. A sunset clause is the escape valve for the other side - if the developer cannot register the plan of survey by the deadline, the contract ends and deposits go back. In a falling market that is annoying. In a rising market it can cost buyers six figures of equity, which is exactly why Queensland legislated¹²³.

How Queensland restricts sunset clauses

Since 2017, sections 19C to 19F of the Land Sales Act 1984 (Qld) have applied to relevant lot sales. In short:

• A developer proposing to exercise a sunset right must first seek the buyer’s written consent, with supporting information
• Without consent, the developer must apply to the Supreme Court for an order permitting rescission
• The Act sets out matters the court considers, including the reason for delay, the terms of the contract and whether the developer would be unjustly enriched
• Warning notice obligations apply before consent is sought

The practical effect: the notorious pattern of developers rescinding late projects to relist at today’s prices has largely been shut down in this state.

What buyers should still watch

Restrictions do not make off the plan risk-free:

• Long sunset windows - five-year dates appear even in compliant contracts; ask why the timeline is generous
• Extension mechanics - some contracts permit unilateral date extensions on notice
• Variations - finishes and layouts may change within tolerance; check how material changes are handled
• Deposit security - confirm where the deposit sits and when the developer can access it during construction
• Duty and concession timing - liability usually crystallises at contract, not settlement

Our off the plan sunset clauses article covers negotiation strategy in depth, and our property resources hub collects the conveyancing guides.

If you have received a sunset notice

Do not sign a consent form without advice. Developers sometimes offer inducements - price locks, upgrades, small cash payments - which may undervalue your position, particularly where comparable prices have moved. You are entitled to refuse consent, forcing the developer to convince a court.

Unsure where you stand? Contact Bell & Senior Lawyers for a free initial chat - see also our conveyancing and property practice area .

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