Qld sunset clause: What it means, how it works and case studies
The sunset clause continues to cause angst between those involved in the building industry. Here’s what it all means.
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In Queensland real estate, a sunset clause is a provision in a contract — typically found in off-the-plan property sales — that sets a deadline by which certain conditions must be met.
These conditions are usually:
■ the property must be completed, and
■ settlement must occur by a specific date.
See the Qld sunset clause cases below >>>
What it means for buyers and sellers
■ For buyers:
If the property isn’t completed by the sunset date, the buyer can legally terminate the contract and have their deposit refunded.
■ For sellers/developers:
The developer may also have the right to terminate the contract if the project isn’t completed in time — but this can be controversial, especially if prices have risen and they want to re-sell at a higher value.
How are they commonly used?
■ Off-the-plan apartments or townhouses
■ House and land packages
Example:
A buyer signs a contract in June 2025 for an apartment expected to be finished by June 2027. The sunset clause says if it’s not finished by December 2027, either party can walk away.
Can a sunset clause be triggered by anyone?
It depends on the contract.
Some sunset clauses allow only the buyer, others only the developer, and some allow either party to trigger termination. This flexibility has raised concerns — especially when developers use the clause to walk away and resell at higher prices if the market has shifted upwards.
What happens if the sunset date passes?
If the property isn’t finished or settlement hasn’t occurred by the sunset date:
■ The buyer or seller can terminate the contract, if the clause allows them to do so.
■ The buyer is typically refunded their deposit in full.
■ Neither party can force the other to complete the sale beyond the deadline unless both agree to extend
Key risks & protections
■ Buyers should check who can trigger the sunset clause — some clauses unfairly favour the developer.
■ Recent concerns in Queensland and other states have seen calls for reform to stop developers exploiting sunset clauses to back out of contracts for financial gain.
Have sunset clauses been misused?
Yes, particularly in booming markets.
There have been high-profile cases where developers intentionally delayed construction, then used the sunset clause to terminate contracts and relist units at higher prices.
While this behaviour is legal under current rules if the contract allows it, it’s widely seen as unethical.
Other buyers have been caught out when projects fell over, leaving them without a property after years of waiting.
Tips for buyers: what to check before signing
■ Read the sunset clause carefully: Who can terminate the contract, and when?
■ Look at the sunset date time frame: Is it realistic for the build type?
■ Ask your solicitor to flag unfair terms: Developers sometimes insert one-sided clauses.
■ Check the developer’s track record: Have they finished projects on time before?
■ Get pre-approval timelines right: Your loan approval may expire before settlement.
Calls for reform: is the law changing?
Queensland is watching other states closely, especially NSW and Victoria, where laws have been tightened to prevent developers from abusing sunset clauses.
There have been industry calls for similar reform in Queensland, such as:
■ Requiring court approval for a developer to terminate, and/or
■ Giving buyers stronger rights to compensation or notice.
So far, no major legislative changes have been made in Queensland, but it’s a hot topic in legal and property circles, especially during market surges.
Qld case studies
January 2025
Residents finally began moving into one of the Gold Coast’s most troubled towers, with the first apartments in the $215m project settling.
Construction of the first 105-unit tower of Marine Quarter at Southport was due in May 2024, but was blown out after the collapse of builder GCB Constructions amid a litany of court actions and debt claims.
Gold Coast builder Groupline completed tower one for Melbourne-based property group Buildcap, while the second tower was boosted by a State Government affordable housing grant.
Some residents of the tower reported being asked for extra money by the developer, who threatened to cancel their contract under its sunset clause if they disagreed.
April 2023
A Queensland couple’s “heartbreaking” experience left them without their dream home after the developer legally and properly invoked a termination clause in the contract, which they claimed now left them $200,000 worse off.
Aleksandra Drapinska and her husband signed a contract in August 2021 to buy land for $306,000 from a developer and separately found a builder to construct their dream home in the Brisbane suburb of Hillcrest.
The couple purchased the land in a development known as Parkview Green, and were told in an email that the land’s infrastructure work had been delayed, and it was expected that all works would be finished by July 2022.
It was estimated that settlement would “likely occur” in mid-July 2022 but there were further delays.
The couple could no longer see their dream home built following a letter they received at the end of March — where the developers Lark Property Development Pty Ltd activated the sunset clause to legally terminate the contract in March of that year, which was the developer was legally entitled to do under the agreement.
October 2023
A top Brisbane restaurateur sued the developer behind an up-market “urban village” townhouse and apartment development in Brisbane’s inner suburbs claiming it cancelled his contract to buy after nearly three years waiting with the project plagued by construction delays and asbestos.
Nicholas Pinn, managing director at the company behind eateries Malt Dining, Malt Traders, Malt Pier, Drum Dining and Vaquero Dining, filed his lawsuit in the District Court in Brisbane against Dunland Property Pty Ltd (Dunland), the owner of the site at 60 Bridge St Wooloowin.
Mr Pinn, from Newstead, asked the court to force Dunland to complete their contract by completing the sale of his dream three-bedroom two-and-a-half bathroom townhouse he signed a contract to buy off-the-plan for $789,000 in February 2021.
Mr Pinn’s townhouse, was set to be in Stage One, and was due to be built on the old Sisters of Mercy site covering sections of Bridge, Chalk and Merehaye Streets and is part of the $180m master planned Greville community 5km north of the CBD.
He alleged that Dunland repudiated the contract of sale in June that year, which entitled him to affirm the sale contract on October 10.
He alleged the repudiation occurred when Dunland’s lawyers wrote to him on June 12 stating Dunland “continues to expect that it will not be able to complete Stage One by the sunset date”.
February 2022
A couple’s dreams of a Sunshine Coast retirement was 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 they were left with 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 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.
September 2024
Buyers in the troubled $100 million Midwater tower feared delays caused by a battle between the developer and builder would see them lose the beachside apartments they’d waited years to move into.
Many buyers signed contracts of around $1.1 million for two-bedroom apartments – with larger apartments priced up to $8 million – in 2021.
Unit prices in Main Beach had swelled by as much as 88 per cent since then, meaning the 119 Midwater apartments were potentially worth $100 million or more above their value when contracts were signed.
Buyers in the project said they feared developer York Property Holdings, part of the Heran Group, would ask for more money or terminate the contracts if construction delays continued.
Midwater builder Tomkins Commercial downed tools, claiming it had not been paid what it was owed for its work – a claim the developer denied.
January 2025
Anxious buyers said they felt “ripped off” by a decision to cancel hundreds of apartment sale contracts in a residential tower in Brisbane’s troubled Queen’s Wharf precinct.
Investors took to a property forum on online platform, Reddit, demanding answers after being advised of the decision, with some asking; “Has anyone got their deposit back yet?” and “Who is to say they won’t ask for another increase before the next sunset date?”
Star Entertainment’s joint venture partners in the precinct — Chow Tai Fook Enterprises and Far East Consortium — were seeking a 12.5 per cent price increase to complete apartments at the tower, some which are priced over $3m.
The inclusion of a ‘sunset clause’ allowed the partners to cancel the contracts if construction extended beyond a specified deadline.
November 2023
Aspiring homeowners were calling for a major change to Queensland’s property laws to protect them from developers pulling the rug out from under them and reneging on the deal at the 11th hour.
Property experts said the use of controversial sunset clauses were increasing as Queensland’s property market boom showed no sign of slowing down.
The Queensland Government introduced new laws that month to protect buyers from losing their land via a sunset clause, but unlike New South Wales, Victoria and the ACT it does not apply to off-the-plan land and build packages.
Sanjay Katyara, 40, was leading calls for the laws to be extended to build packages in line with other states, having been among 133 families stung by a sunset clause at a site in Rochedale where he signed a contract to buy for $645,000.
Developer Bespoke Rochedale Pty Ltd invoked the sunset clause, because the “sunset date” requiring them to have levelled the land and built retaining walls to turn it into a “ready to build” piece of land, as stipulated in the contract, had passed.
May 2025
Buyers in a massive beachfront apartment tower were told they needed to pay almost 40 per cent more than they signed on for – with some forced to cough up an extra $2m just to move in.
Off-plan buyers in the troubled Midwater tower on the Gold Coast were told they had days to agree to a 37.5 per cent hike, with the developer claiming the project was “not commercially viable or practical” without it.
Developer Heran Group said it would invoke sunset clauses and terminate contracts for those who did not agree.
Heran stood to take in tens of millions more on the apartment if they cancel old contracts and resell at 2025 prices – a move which is entirely legal under Queensland law.
Buyers of the 119 apartments signed up for between $1m and $8m since 2020, meaning a 37.5 per cent hike would see them having to find anywhere between $375,000 and $3m on top of their initial prices.
Purchasers were initially told they’d be able to move in at the end of 2023, but repeated delays mean their contracts are approaching “sunset dates”, legally allowing them to be scrapped if construction has not been completed.
May 2022
Aspiring homeowners were refusing to back down in a dispute against a developer as they fought to have Sunshine Coast hinterland land contracts reinstated.
A group of four buyers including sisters Lisa and Alex Parfitt and first homebuyer Ellyn Alexandra Evans was involved in separate court proceedings against Burrell Ave Developments Pty Ltd.
Following an initial hearing in the Supreme Court of Queensland, they were seeking to take the matter to the District Court.
The Parfitts’ dispute was put forward as a test case in the Queensland Supreme Court in an attempt to sue Burrell Avenue Development for suspending a land contract under the sunset clause.
According to court documents, the Parfitts signed a contract for a block of land in the Eumundi subdivision for $275,000 in September 2018.
Originally published as Qld sunset clause: What it means, how it works and case studies
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