What Is a Sunset Clause in a Gold Coast Property Contract?
A sunset clause is a term in a property contract that sets a date by which certain things must happen. Most often, it’s used in off-the-plan contracts, where a buyer agrees to purchase a property that hasn’t been built yet.
The clause says: if the property isn’t completed by a certain date (the “sunset date”), either the buyer or the seller can cancel the contract. Sounds straightforward, but like many things in property, the devil is in the details.
Why Does a Sunset Clause Exist?
From the seller’s side, it offers a timeline for when a deal should be wrapped up. From the buyer’s side, it’s protection against excessive delays. In theory, it gives both parties clarity.
But in practice, especially in a fast-moving or uncertain market like the Gold Coast, it can become a grey area.
Off-the-Plan Sales: Where Sunset Clauses Really Matter
If you’re selling your home and planning to buy off-the-plan, this clause can impact your timelines.
Imagine this: you’ve sold your home, you’re ready to move, and you’re relying on your new apartment being finished by March. The sunset clause says the builder has until June. March comes and goes. Then April. Then May. And you’re stuck renting, juggling storage, and possibly wondering why you ever moved at all.
From a seller’s perspective, if you’re on the other end of a contract with a sunset clause, it’s worth knowing how it works and what risks it might carry.
Legal Rights and Responsibilities
In Queensland, and especially here on the Gold Coast, legislation has been introduced to help protect both parties from unfair use of sunset clauses.
In some high-profile cases, developers have used sunset clauses to cancel contracts with original buyers, only to relist properties at higher prices. It’s legal, but not always fair. That’s why laws have evolved to require more transparency.
As of the latest reforms, sellers (especially developers) now often need written consent from the buyer or approval from the Supreme Court to terminate a contract under a sunset clause.
If you’re selling and part of a development deal, or you’re considering accepting an offer that involves a buyer relying on an off-the-plan settlement, knowing your legal standing matters.
Recent Changes in Queensland Property Law
The Property Law Act 2023 introduced several reforms to modernise real estate transactions in Queensland. One of those changes tightened the rules around how sunset clauses can be exercised.
Here’s what matters to you:
- Termination under a sunset clause now requires buyer consent or court approval in many off-the-plan scenarios
- Disclosure requirements have increased, so buyers are more informed
- Sellers must act in good faith, especially when delays arise
These updates offer more stability but also mean contracts can be more complex. If you’re about to sign one, reading the fine print is more important than ever.
Tips for Sellers Navigating Sunset Clauses
You might not be a developer, but you could still be affected by these clauses. Especially if:
- You’re buying off-the-plan as your next home after selling
- You’re selling to a developer with long-term plans
- You’re unsure how to time your sale with your next purchase
Here are a few things to consider:
- Ask about the sunset date. If you’re buying, make sure it fits your timeline. If you’re selling to someone relying on an off-the-plan deal, ask them how it might affect your sale.
- Have a plan for the in-between. What if your next place isn’t ready on time? Look into short-term rentals or ask your agent about potential lease-back options.
- Speak to your solicitor. Don’t rely on guesswork. Have someone go over the contract with you so you know your rights.
- Avoid assumptions. A sunset clause doesn’t always mean delays. But it also doesn’t guarantee smooth sailing.
Thinking About Selling? You’re Not Alone
You might be at that stage where the idea of selling your Gold Coast home is starting to take up more mental space. Not quite ready to take the plunge, but curious. Wondering how the market’s moving. Asking yourself questions like: “Where do I even start?” or “What happens if the buyer pulls out?“
What You Might Not Hear From Other Agents
Some agents will gloss over the fine print. They’ll tell you everything will be fine, that these delays don’t happen often. Maybe that’s true. But maybe it’s not.
The reality is, Gold Coast property can move fast, and not everything goes to plan. Delays in construction, finance, or even local council approvals can all push that sunset date further than you’d like.
When you’re selling your Gold Coast home, it’s okay to ask the hard questions. It’s okay to want real clarity about what you’re signing.
How to Keep Your Options Open
You don’t need to rush into a decision. Just understanding what a sunset clause means puts you ahead of many sellers.
Here are a few non-committal things you can do right now:
- Start a “move folder.” Whether it’s a Google Drive or a drawer in your kitchen, keep notes, property prep ideas, financial estimates, and questions all in one place.
- Talk to your bank or broker. You’re not locking anything in. Just get a sense of what your financial position might be if you did decide to sell.
- Look into short-term housing options. Even just knowing what’s out there can help you feel less boxed in.
- Imagine what next could look like. You don’t have to know exactly where you want to live. Just thinking about lifestyle, location, or what matters most to you can help bring clarity.
- Stay updated on the market. If you’re not ready to talk to an agent, that’s okay. Even a simple in-person appraisal can help you understand your current position.
Selling Your Gold Coast Home: Be Informed, Not Pressured
Sunset clauses aren’t something to be afraid of. But they are something to understand. The more you know now, the fewer surprises you’ll face later.
You don’t have to figure this all out in a day. Selling your Gold Coast home is a big step, and it’s normal to feel unsure at first. Whether you’re months away from doing anything or just want to learn the ropes, that curiosity is a great place to begin.
No pressure. No expectations. Just honest guidance from someone who’s been around this space for a while. And if I don’t know the answer, I’ll ask the right questions and find it for you.
Author – Craig Douglas
Please Note: The information contained in this document is for general information purposes only and does not constitute legal advice. The laws and regulations governing the sale of property in Queensland are complex and constantly changing. It is important to seek the advice of a qualified property lawyer or conveyancer before making any decisions about the sale of your property. This document does not take into account your individual circumstances and may not apply to your situation. By reading this document you agree that you have not relied on the information contained herein and that you will seek independent legal advice before taking any action.
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Phone me now, Craig Douglas 0418 189 963
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This page was proudly created by Craig Douglas, your local independent Gold Coast real estate agent, working for a Boutique Real Estate Agency. Selling residential and commercial properties, from those that are awe-inspiring, through to a diamond-in-the-rough, otherwise known as a “renovator’s delight”.
I negotiate and sell on behalf of property owners who want to get the best possible price, with the least amount of hassle. Let’s talk about the process of selling your property over a coffee to get you started – 0418 189 963
