Sunset Dates in Off-the-Plan Contracts – What Agents Should Know

For Queensland property professionals, off-the-plan contracts are a regular part of life—especially in a growing market with constant demand for new developments. Yet one of the most misunderstood and critical components of these contracts is the sunset clause.

Sunset clauses have attracted attention in Queensland in recent years due to concerns about fairness and balance between buyer and developer rights. As a result, it’s essential that real estate agents understand how sunset dates operate, the risks they pose, and how to guide buyers appropriately during the sales process.

Director of GM Law, Gerard Pagliaro shares his thoughts on this matter:

1. What Is a Sunset Date?

A sunset date is the deadline by which a developer must complete a project and register the title so that settlement can occur under an off-the-plan contract. If the sunset date passes without registration or completion, the contract may be terminated, usually by the buyer and sometimes by the developer — but only in accordance with the terms of the contract and any applicable legal requirements.

Sunset clauses are included to provide certainty and a long-stop date. Without them, buyers could be tied into contracts indefinitely while waiting for completion.

2. The Role of Sunset Dates in Queensland Property Contracts

In Queensland, off-the-plan contracts typically involve:

The sale of residential land prior to the issue of title; or
The sale of units or townhouses before the scheme is formally established.

The sunset clause sets a maximum timeframe — often two to four years — for the developer to complete the development and make the lot or unit ready for settlement. These timeframes can vary depending on the scale of the development, approvals required, market conditions, and finance arrangements.

If completion doesn’t occur by the sunset date, the parties may be able to terminate the contract — but only in accordance with the contract and relevant law.

3. Why Sunset Dates Matter for Buyers and Developers

For Buyers:

A sunset date offers certainty that the project will be completed (or the buyer can exit).
It protects them from being tied into contracts for years while the market shifts.
It gives leverage if construction is significantly delayed.
It limits risk exposure to rising interest rates, job changes, or changes in personal circumstances during the waiting period.

For Developers:

The sunset clause provides a realistic timeframe to complete the development, accounting for approvals, construction, weather, and market forces.
It sets expectations with buyers and financiers.
It provides a backstop if unforeseen delays threaten project viability (subject to contractual terms and legal limitations).

4. Risks of an Inappropriate Sunset Date

If the Sunset Date is Too Short:

The developer may not be able to meet the deadline due to delays in approvals, finance, construction, or registration.
If the date is missed, the buyer may terminate the contract, which could jeopardise the project’s funding or trigger a domino effect with other buyers.
Extensions usually require buyer agreement, which may not be granted.

If the Sunset Date is Too Long:

Buyers may become financially or emotionally tied up in a long-term contract with no certainty of completion.
Market conditions, personal circumstances, and finance eligibility can change over time.
Buyers may feel trapped and anxious about delays and developer performance.

5. What Happens If the Sunset Date Expires?

In a standard off-the-plan contract, if the sunset date passes and the development is not completed or the title is not registered, then termination rights may arise.

The buyer may have a right to terminate the contract under the sunset clause. A developer’s right to terminate is typically limited by the terms of the contract and may also be subject to legislative restrictions.

Queensland legislation does regulate the use of sunset clauses in certain off-the-plan contracts. For example, the Land Sales Act 1984 (Qld) contains provisions that prevent automatic termination and restrict when a developer can terminate under a sunset clause. A developer generally cannot terminate after the sunset date unless the buyer consents in writing, or an order is obtained from the Supreme Court, or another permitted process under the legislation is followed.

These provisions are aimed at protecting buyers from losing a property due to developer-initiated termination based purely on timing, particularly in a rising market. Proper notice must be given, and reasons must be outlined, ensuring transparency and fairness in the process.

6. The Agent’s Role: Educating and Informing Buyers

Real estate agents, while not legal advisors, are often the first point of contact for buyers considering off-the-plan purchases. It’s vital that agents are able to identify the significance of the sunset clause and guide buyers toward informed decisions.

Here are key areas agents should focus on:

Explain the Purpose of the Sunset Clause

Agents should clearly inform buyers that the project is not yet complete and that the contract allows a significant delay between signing and settlement. Highlight that the sunset date defines the maximum period they may be expected to wait.

Avoid Assumptions About Timeframes

Agents should not guarantee that a development will be completed well before the sunset date. Even with the best intentions, construction projects are prone to delay.

Encourage Buyers to Seek Legal Advice

Buyers should always be encouraged to have the contract reviewed by a Queensland conveyancing solicitor before signing. The solicitor can explain the sunset clause and ensure the buyer understands the implications Support Transparency from Developers.

Where possible, agents should ensure developers are providing realistic and well-informed estimates of the expected completion timeframe and not just relying on overly generous sunset clauses.

Dispel Common Misconceptions

Agents can correct misunderstandings such as:

“If it takes too long, the developer can just cancel.” – Not without complying with the contract and consumer law.
“I’ll definitely get in sooner than the sunset date.” – Maybe, but not guaranteed.
“If I change my mind, I can cancel anytime before it’s built.” – Not true. The contract binds the buyer unless specific legal grounds apply.

Final Thoughts

The sunset clause in an off-the-plan contract is more than just a legal technicality — it is a core protection for buyers and a risk-management tool for developers. In Queensland, legislation imposes limits on how and when a developer can terminate a contract after the sunset date, providing added protection for buyers. Contracts must be interpreted in light of consumer law, good faith obligations, and these statutory safeguards.

Real estate agents who understand and communicate these concepts play a key role in promoting transparency and trust in off-the-plan sales.

By working collaboratively with legal professionals and staying informed about Queensland’s property laws, agents can ensure they are not only protecting their clients but also building a stronger reputation for professionalism and diligence.

Need Legal Guidance?

At GM Law, we specialise exclusively in Queensland conveyancing and regularly assist buyers, sellers, and agents in navigating off-the-plan transactions. If you have questions about a sunset clause — or any other aspect of property contracts — contact our team for practical, plain-English legal advice.

We service the entire Brisbane metropolitan area

If you need help to get a contract sorted so you can secure a property for your client, we have set up the GM Law agent hotline.

You can email us at AgentSupport@gmlaw.com.au to get urgent personalized support.