In recent years, as property prices have continued to rise, there have been cases of unethical developers exploiting the market. Some developers intentionally delay projects past the sunset clause expiry, unilaterally terminate contracts, return the deposits to the original buyers, and then resell the properties at a higher price to third-party buyers to secure greater profits.
It is crucial for buyers to understand their legal rights. As of November 2023, under off-the-plan (flat land) contracts, if a seller wishes to terminate the contract using the sunset clause, they must first obtain the buyer’s consent or a court order from the Supreme Court.
However, it is important to note that the legal position regarding unilaterally terminating off-the-plan apartment contracts (body corporate) under the sunset clause remains unclear.
If you have any questions or require further assistance, please feel free to contact us.
