Sunset Clauses and the Coomera Townhouse Case
Buying property off the plan is often seen as an affordable pathway into the Queensland housing market. But a recent case in Coomera has exposed the legal risks that come with it—particularly for those purchasing townhouses or units.
In January 2025, a group of buyers who signed contracts for off-the-plan townhouses in a Coomera estate were shocked to receive notice that their contracts had been terminated under a sunset clause. Many had paid deposits as early as 2021, expecting their homes to be ready within a few years. Now, with the development delayed and the contracts voided, most say they can no longer afford to buy in the same area due to rising prices.
The developer cited the sunset clause as the legal basis for termination—returning deposits, but leaving buyers without homes, three years after signing.
What Is a Sunset Clause?
A sunset clause is a common feature in off-the-plan contracts. It sets a deadline (known as the sunset date) for the project to be completed or settled. If that date passes and the property isn’t finished, the contract can be terminated—often by the developer.
Originally designed to protect buyers from endless delays, sunset clauses have at times been used by developers to exit contracts and resell properties at higher market prices.
2023 Law Reform in Queensland: Flat Land Contracts Only
In response to growing concerns, the Queensland Government passed new legislation in November 2023, tightening the rules around sunset clauses—but only for off-the-plan flat land sales, such as individual lots in new subdivisions.
Under the new rules, a developer cannot terminate the contract after the sunset date unless they either:
- Get written consent from the buyer, or
- Obtain a Supreme Court order permitting termination.
This change aims to prevent unfair cancellations and protect buyers from losing their place in the market when prices rise.
Townhouses and Apartments Not Yet Protected
The Coomera case involved townhouses, which are classed as body corporate properties in Queensland. Unfortunately, the 2023 sunset clause reforms do not currently apply to these types of contracts.
As a result, townhouse and unit buyers remain vulnerable to contract termination once the sunset date passes—even if they’ve waited years and followed every requirement. Law reform to cover body corporate (strata) properties is currently under consideration, but no legislative protections are yet in place.
Key Takeaways for Queensland Buyers
If you’re considering buying a townhouse, apartment or house off the plan in Queensland, it’s essential to protect yourself from the outset.
Carefully Review the Sunset Clause
Understand the date, the developer’s rights, and whether you’ll have any say if delays occur.
Don’t Sign Without Legal Advice
Even standard-form contracts can contain sunset clauses that work against you. A property lawyer can review the terms and highlight any red flags.
Follow Legislative Updates
While land buyers now benefit from added protection, unit and townhouse purchasers remain at risk. Changes may come in 2025–2026, but for now, due diligence is critical.
Protect Your Property Purchase
If your off-the-plan contract has been terminated, or you’re preparing to buy into a new estate or townhouse complex, getting legal advice early can help you understand your options and avoid future disputes.
At Ensure Legal, we assist Queensland buyers with contract reviews, dispute resolution, and legal protection in property transactions.
