With interest rates and the cost of building increasing many of our clients have expressed their desire to withdraw from their long term off the plan contracts. We act for a number of developers/sellers and buyers who are parties to off the plan contracts and are utilising sunset dates to terminate or renegotiate the terms of these contracts.

In Queensland a buyer has statutory rights to have title delivered to it within a specified time period. This means that the seller must complete the property project and convey the property to the buyer before a specified time otherwise the buyer has rights to terminate the contract. The sunset date prescribed by statute differ depending on whether the property is:

  1. a unit subject to the Body Corporate and Community Management Act 1997 (Qld); or
  2. land the subject of the Land Sales Act 1984 (Qld).

In addition to the above, most off the plan contracts specify the time by which the project must be completed i.e., the Sunset Date. If a project is not completed and the contract settled by the sunset date, the contract can be terminated and the deposit returned to the buyer either pursuant to the relevant legislation or the contract.

Usually either the buyer or the seller can avail themselves of the right to terminate for failure to deliver the project by the sunset date. However, a person wanting to terminate will need to ensure that up to the sunset date it has complied with its obligations under the contract before purporting to terminate. If a delay has been caused as a result of a default by a person to the contract, they may not have the right to terminate.

If you are concerned about:

  1. your off the plan contract and whether it can be terminated; or
  2. your ability to settle your contract,

Rouse Layers can review your contract and provide you with advice on yours and the counterparty’s rights and obligations.

Disclaimer

The information contained on this website is for general guidance on matters of interest only. The application and impact of laws can vary widely based on the specific facts involved.

Accordingly, the information on this site is provided with the understanding that the authors and publishers are not providing legal advice. As such, it should not be used as a substitute for consultation with professional legal advisers. Before making any decision or taking any action, you should consult with a professional lawyer from Rouse Lawyers.

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