Stronger buyer protections for off-the-plan land sales in Queensland

Recent legislative changes in Queensland have been introduced that are designed to better protect people buying land off-the-plan in Queensland.

By API Contributor

| 4-12-2023 | Property Management | 1 min read

The sun is setting on sunset clauses that were often applied to off-the-plan sales contracts. (Image source: Shutterstock.com)

Recent law changes in Queensland have been introduced that are designed to better protect people buying land off-the-plan.

Writing for API Magazine, the Department of Justice and Attorney-General in Queensland detailed the changes, which commenced on 22 November 2023.

They mean sellers can now only use sunset clauses to terminate contracts of sale for land sold off-the-plan in the following situations:

with the written consent of the buyer
under an order of the Supreme Court, or
in another situation prescribed by regulation.

Previously, sellers could generally terminate a contract of sale for land bought off-the-plan if it included a sunset clause and didn’t settle by the specified date.

These changes follow consultation with consumers, property developers and peak bodies.

These new laws apply to:

existing off-the-plan contracts for the sale of land that were signed but not settled by 22 November 2023; and
new off-the-plan contracts for the sale of land signed on or after 22 November 2023.

Sellers will still be able to include sunset clauses in their contracts but must abide by the new laws and obtain the buyer’s written consent or an order of the Supreme Court to invoke them.

The government intends to commence a review of the changes in one to two years and will consider if further reforms are needed to protect people buying proposed community titles and similar lots off-the-plan, such as apartments and townhouses.

This staged approach recognises the increased pressures sellers are currently facing around labour and material availability and construction costs.

Release of deposits

Changes have also been made in the Land Sales Act 1984, the Body Corporate and Community Management Act 1997, the Building Units and Group Titles Act 1980, and the South Bank Corporation Act 1989 to confirm that sellers cannot gain early access to deposits paid under all off-the-plan sale residential property contracts.

Funds can only be released from a trust account to the seller at the time of settlement or if the contract otherwise finalises and the seller is entitled to the deposit.

For more information, visit subdividing and selling land on the Office of Fair Trading website.