While these clauses are designed to offer protection, legislative provision exists to manage the use of sunset clauses in select circumstances. So, what exactly are they – and how can you protect yourself?
What is a sunset clause?
A sunset clause is a provision in a property contract, typically in off-the-plan sales, that sets a deadline (the ‘sunset date’) by which the development must be completed and the title registered.
If this deadline isn’t met, either party, the buyer or the developer, may have the right to terminate the contract in defined circumstances.
More information about buying off the plan and sunset clauses can be found on the Office of Fair Trading website here.
What role does the QBCC play?
The QBCC plays an important role in upholding Queensland’s building standards by administering legislation designed to protect consumers and support industry integrity. We don’t write laws, provide legal advice or directly regulate contract/sunset clauses, however, for property owners and buyers navigating sunset clauses we:
- educate property owners about their rights and responsibilities
- investigate licensing matters and building complaints, with any further action depending on the status of the relevant contract.
We collaborate with stakeholders to advocate for legislative reforms delivering greater transparency and fairness for consumers and contractors in the building and construction sector.
We encourage buyers to:
- seek legal advice before signing any contract
- review disclosure statements carefully, which must include details about the proposed lot and development works
- maintain open communication with developers and ensure accurate record keeping to avoid misunderstandings and disputes.
Tips for property buyers
Read the fine print: Understand the sunset clause terms and how they can be triggered.
Ask questions: Maintain open communication with the seller/developer and clarify timelines, risks, and what happens if delays occur.
Seek legal advice: A property lawyer can help you assess the fairness of a sunset clause and navigate other disclosures and contract terms.
Monitor progress: Stay informed about the development’s status and any changes, including via the QBCC licensee register.
More information
Visit our Home Owner Hub for your five-step guide to building and renovating in Queensland, including understanding contracts and our role as Queensland’s building and construction regulator.
