What is a sunset clause?
It is a contract term that lets a party end the contract if a specified event, such as plan registration or an occupancy permit, has not happened by the sunset date. It is not a promised move-in date, and it does not automatically mean you get compensation.
How each state limits sunset clauses
| State | When a developer can end the contract under a sunset clause |
|---|---|
| Queensland | For off-the-plan land sales covered by the Land Sales Act, since 2023 only with the buyer's written consent, a Supreme Court order or in a situation prescribed by regulation. Community titles schemes, such as many apartments, follow different rules, so check which law applies. |
| New South Wales | For residential off-the-plan contracts, only with the buyer's written consent or a Supreme Court order, after giving the required notice. |
| Victoria | For residential off-the-plan contracts, only if the plan is not registered or the occupancy permit is not issued by the sunset date, and then only with each buyer's written consent (after at least 28 days' written notice) or a Supreme Court order. |
How buyers can protect themselves
- Have the contract reviewed before signing and note the sunset date
- Ask what event the clause depends on and who controls it
- Check where the deposit is held and how it is refunded if the contract ends
- Keep every developer notice and send it to your conveyancer straight away
- Do not sign a consent to end the contract without advice
Your next step
Have your contract checked before you commit
Tell us the property state, development name, whether you have signed and any deadline. Off-the-plan contract reviews and purchases are quoted separately; the standard residential review price and instant quote are not a quote for this work.
Common questions
Can a developer cancel just to resell at a higher price?
The state laws above were introduced to stop developers ending residential off-the-plan contracts without the buyer's consent or a court order. Whether they apply depends on your property and contract, so get advice quickly if you receive a notice.
Can the buyer use a sunset clause too?
Often yes, depending on the wording. A buyer may be able to end the contract if the event has not happened by the sunset date. Check your contract before acting.
Does DJR review off-the-plan contracts?
Yes. Off-the-plan contracts are quoted separately because of their extra documents. Send us the contract for a tailored quote.
Sources
- Queensland Government — Buying off the plan
- Queensland Law Society — Review of 2023 sunset clause reforms (Oct 2025)
- NSW Office of the Registrar General — Off-the-plan contracts
- Victoria — Sale of Land Amendment Act 2019, sections 10A–10E
- Consumer Affairs Victoria — Buying off the plan
General information only, not legal advice. Checked 14 October 2026.
