Attorney-General Shannon Fentiman to announce restrictions on use of controversial sunset clauses
A change to property law will be announced on Wednesday which could make a huge difference to buyers of residential land. FULL DETAILS
Gold Coast
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Developers will no longer be able to use “sunset clauses” to tear up contracts of land buyers under major new reforms unveiled by Attorney-General Shannon Fentiman.
The Bulletin in a series of reports revealed how some developers had used the clauses to scrap contracts signed by first-home buyers after 18 months if the sale was not settled.
The termination of the deals devastated buyers who had no role in delays, but were thrust back into hunting for properties in a market where prices had soared in the meantime.
Developers were meanwhile free to relist the land at considerably higher prices.
Among the cases reported by the Bulletin were:
* Homebuyers left hundreds of thousands of dollars worse off after the pin was pulled on their contracts to buy land at an estate in Maudsland.
* A couple whose relationship fell apart amid the stress of having a contract to buy land at Ormeau terminated.
* The use of the clauses to terminate the contracts of buyers at an estate on the Sunshine Coast and at The Gap in Brisbane.
In the wake of the Bulletin reports and calls from Theodore MP Mark Boothman for legislation to be amended, Ms Fentiman committed to examining possible changes to property laws.
Ms Fentiman on Wednesday announced the legislation will be amended to ensure sunset clauses can in future only be invoked:
* With the written consent of the buyer.
* Under an order of the Supreme Court.
* In another situation prescribed by regulation.
Ms Fentiman said the government wanted to ensure that when people bought land off the plan, the process was “fair”.
“While property development is a vital part of the Queensland economy – we also need to
make sure Queensland buyers are protected when they purchase land off-the-plan,” Ms Fentiman said.
“We know property law is a complex and technical area that differs between states and
territories, and we have listened to home buyers and property developers to ensure these
changes reflect both party’s needs.
“Buying a home is one of the biggest decisions and investments a Queenslander will make
in their lifetime, and we want to ensure they are protected, and the process is fair.
“I am pleased to announce that work has started on law reforms that will better protect
Queenslanders when entering a contract for the ‘off the plan’ sale of land.”
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Originally published as Attorney-General Shannon Fentiman to announce restrictions on use of controversial sunset clauses
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