New protections for off
the plan apartment buyers
Buying an apartment off the plan is like buying a pizza -
you need to wait until it is ready.
The waiting time for the new apartment can be two or more
years. The date predicted for completion is known as the
sunset date. If the building is not completed by the sunset
date, then the vendor and the purchaser can each terminate
the sale contract.
What if the property market rises in the meantime, making
the sale price look like a bargain? Is it not possible that
a property developer might use the sunset clause to
terminate (the legal term is rescind) the sales contract and
re-sell the apartment at a higher price?
After receiving many complaints about developers who used
sunset clauses to terminate contracts, leaving purchasers
with only their deposit back and being unable to afford a
replacement property because the property market had risen,
the NSW Government has taken action to limit the use of
sunset clauses by property developers in off the plan sales.
For more information see
The new law for sunset clauses will
require property developers to obtain the buyer's consent or
have a good reason to rescind a contract