The Queensland Government has released online surveys to evaluate the effectiveness of 2023 reforms, which restricted the ability of developers to terminate off-the-plan contracts under sunset clauses.
Amendments to the Land Sales Act 1984 came into effect in November 2023, which severely restricted the ability of developers to terminate off-the-plan land sale contracts and options to purchase under sunset clause provisions. The restrictions do not apply to proposed lots in community titles schemes.
Those changes mean that developers may only rely on a sunset clause to terminate an ‘off-the-plan’ contract for land with the written consent of the buyer or a Supreme Court order.
Feedback we have received from the development industry is that this change has reduced developers’ appetites to engage in flat land developments – if there are delays in bringing the land to market or significantly increased costs, the developer may not be able to exit a contract which may no longer be financially viable for them to complete.
The Queensland Government is now looking for feedback from buyers and sellers on this reform and has released separate surveys for buyers and for sellers/developers to assist the Queensland Government’s review. Both surveys are available on the Office of Fair Trading’s website here.
The consultation process closes on Friday, 10 October 2025, so there is only limited time to have your views taken into account if you are a developer, seller or buyer and have been impacted by the 2023 reforms.
If you have any questions or concerns, contact our Property + Business Transactions Team for more information.
For further information, contact Amanda Tolson or Carly Brailak.
The assistance of Michelle Broome, Lawyer, in researching this article is gratefully acknowledged.
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