Clock running to have say on ‘sunset clauses’
THE state government is inviting home buyers and developers to have their say ahead of changes to property laws, which are expected to restrict the use of “sunset clauses”.
In December, the Bulletin revealed how developers at some Gold Coast estates were using the clauses to tear up the contracts of first-home buyers after 18 months if the sale is not settled.
After Bulletin pressure, Attorney-general Shannon Fentiman committed to examining whether property laws could be amended to better protect buyers.
“Since the pandemic we have seen more people move to Queensland, resulting in growing property sales including buying off-the-plan developments,” Ms Fentiman said.
“I am aware of recent reports of developers terminating contracts for off-the-plan sale of land if the contract is not settled within a specified time frame.
“At the same time, property prices have been rising, which may leave these buyers with limited or no options within their budget.
“That’s why the Palaszczuk government is asking both home buyers and property developers to have their say on these residential property laws.”
The government will launch two surveys on Monday – one for buyers and one for developers – to gauge views about how the law might be changed. The surveys will be hosted on the Office of Fair Trading website and close on September 14, 2022.
Member for Gaven Meaghan Scanlon said it was important p buyers w were protected when entering into property contracts. c “Buying a home is one of the biggest decisions c and investments vestme t Queenslanders Q will make in their lifetime – so it’s really important that they’re protected when entering a contract for an off-the-plan development,” Ms Scanlon said. “I would encourage property buyers and industry on the Gold Coast to have their say through the online surveys.”
A department source said property law was a complex area and it was important that all stakeholders had their say to ensure any changes to legislation did not have unintended consequences.
In the meantime, Ms Fentiman recommended buyers exercise caution when signing a purchase contract.
“Off-the-plan residential property contracts are complex and involve non-standard terms,” she said.
“They also involve risks for both the developer and buyer, such as changing property values over the period of the contract. I strongly urge anyone looking to buy off the plan to seek legal advice before signing a contract.”