Nambour developers invoke sunset clause to terminate contract

A couple’s dream of a Sunshine Coast retirement has been shattered after a contract was torn up in a situation the buyer has described as “morally totally wrong”. VOTE IN OUR POLL

A couple’s dreams of a Sunshine Coast retirement were shattered after their contract for a hinterland block was torn up nine months after signing it.

Wayne Dunkley sold his property and rented a Bribie Island duplex for 12 months with partner Jane in anticipation of building a new home.

But now they have nothing to show for it after developers Solst Pty Ltd activated the sunset clause to terminate the contract for the Solandra St, Nambour block.

Mr Dunkley said they now could not afford a home in the area as the Sunshine Coast market’s phenomenal growth continued and had instead been forced to buy in the Lockyer Valley.

“We thought a new house on a nice block of land in Nambour would be great,” he said.

“Now we’ve paid rent, storage costs and legal costs for this land and building contract for no reason.”

Similar clauses have been used to terminate contracts at unrelated developments on the Gold Coast, Brisbane and other parts of the Sunshine Coast, including at Eumundi.

The use of these clauses are not prohibited under Queensland law.

Mr Dunkley said they were attracted to the property because of the 1400sq m block which was larger than other options on the Sunshine Coast.

He said they looked forward to building a new home to retire in after previously buying older properties in need of renovations.

“We lose out and they’re (probably) going to sell our block now at a higher price,” he said.

“Morally it’s totally wrong … we’ve been in a holding pattern for 12 months.

“I’ll never buy land without title again.”

The block Wayne Dunkley signed a contract to purchase for $255,000.

They also paid a $25,000 deposit for the Vantage Homes house and land package and picked the design and colours.

Mr Dunkley said Vantage had returned his deposit in full.

Nambour’s house prices have increased by almost 40 per cent in the past 12 months with median prices now about $656,000.

It’s not the only struggle at the Nambour housing estate after several other blocks were damaged during recent wet weather which caused soil to wash away from underneath slabs.

Some blocks were recently damaged by wet weather. Picture: Patrick Woods.

Special laws have been introduced in New South Wales and Victoria where sellers have to get consent from the purchaser or the Supreme Court before using the sunset clause to terminate an off the plan contract

Real Estate Institute of Queensland chief executive Antonia Mercorella said when buying off the plan there were likely to be conditions to allow a party to terminate the contract, including a sunset date.

She said there was little buyer protection for when a seller terminates a contract under the sunset clause.

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Ms Mercorella said the REIQ was aware of allegations where sunset clauses were used to terminate off the plan contracts “to obtain higher prices” for lots in developments.

“If evidence were to emerge that this is indeed the case … this may warrant the introduction of stronger buyer protections,” she said.

She said usually the seller would opt for a maximum allowable time – about 5.5 years for apartments and units or 18 months for other properties.

She said the purpose was to provide protection for sellers where circumstances beyond their control caused delays.

Ms Mercorella recommended buyers get independent legal advice before signing a contract.

REIQ CEO Antonia Mercorella said there were few protections for buyers when it comes to sunset clauses.

“Buyers should understand that once the contract is signed it is binding and depending on the contract conditions, there is no guarantee that the contract will actually reach settlement,” she said.

Mr Dunkley said he was refunded his deposit for the property and the house and land package.

The Coles delivery driver said he wished he was more aware of the clause before purchasing the home.

The original contract said the sunset clause would be within 18 months, but a revised version had it reduced to nine months.

Mr Dunkley’s block was one of three larger blocks in the 28-lot Solandra Estate where construction is yet to start.

Solst Pty Ltd declined to comment and Vantage Homes did not respond.