Risks Behind “House & Land Package” Delays
In Queensland, an increasing number of buyers are choosing to purchase new homes through House & Land Packages, which involve buying land and an off-the-plan building agreement before construction begins. While this arrangement offers advantages such as lower prices, tax savings, and design flexibility, it also carries risks—especially when construction is delayed.
Some developers may attempt to invoke the sunset clause in the contract during periods of rising property prices, using project delays as justification to cancel the contract and resell the land or dwelling at a higher price. For buyers, this can result in financial loss and the disappointment of not being able to settle as expected.
What is a Sunset Clause?
A sunset clause is a standard provision in off-the-plan property contracts. It sets a specific “sunset date” by which the project must be completed. If construction is not finished by that date, either party—most commonly the developer—may terminate the contract.
Originally intended to protect both parties from indefinite delays, this clause has in some cases been abused by developers as a way to back out of deals and chase higher profits from new buyers.
Queensland Law Now Protects Buyers
To prevent misuse of sunset clauses, the Queensland Government passed new legislation effective 22 November 2023. Under the updated law, developers can no longer terminate off-the-plan contracts under a sunset clause without either:
- Obtaining the buyer’s written consent, or
- Receiving approval from the Supreme Court of Queensland
This legislative change provides buyers with stronger protection—particularly in a volatile property market—by stopping unfair terminations and strengthening buyer confidence. According to the Queensland Government’s official guidance, buyers are encouraged to know their legal rights and seek professional advice before signing any off-the-plan agreement.
Recommended Actions for Buyers
- Carefully review your contract: Understand the terms and implications of the sunset clause.
- Check whether the new laws apply: Ensure your contract was signed after 22 November 2023 to receive the latest protections.
- Seek legal advice: Buying off-the-plan involves legal and financial complexity—consulting a lawyer can safeguard your interests.
ENSURE LEGAL – Protecting You at Every Step
At ENSURE LEGAL, we specialise in property and contract law and understand the risks hidden in off-the-plan contracts. We have successfully assisted clients—ranging from first-home buyers to investors—in reviewing contracts, negotiating discounts, and ensuring legal protection. If you have concerns about a sunset clause or any other property-related legal matter, get in touch with ENSURE LEGAL. We are here to be your trusted legal partner throughout your property journey in Australia.
