The Sunset date is an important legislative item in off the plan apartments and house constructions. It sets out the day the developer fulfils the final obligation prior to settlement and registers the plan of subdivision.
In Australia, sellers have a legislative obligation to complete off-the-plan contracts within a set period of time after the contract date, failing which either the seller or purchaser has termination rights (depending on the jurisdiction).
Every contract may have unique conditions to extend the sunset date due to certain conditions. Your solicitor will be the best person to check if the sunset date and conditions of the clause is reasonable. They can advise on adjustments on the sunset date and extension clauses.
Why is a sunset date important?
Sunset dates can be a valuable tool for protecting both buyers and sellers in off the plan property contracts. For buyers, a sunset date provides peace of mind knowing that they will not be obligated to purchase a property that is not completed on time. For sellers, a sunset date can help to ensure that they will not be left with an unfinished project.
What are the benefits of sunset dates in off the plan property contracts?
- It protects the buyer from delays in construction
- It gives the buyer the option to terminate the contract if the property is not completed on time
- It helps to ensure that the developer has a clear deadline for completing construction
What are the risks of sunset date?
- The buyer may not be able to find a comparable property if they terminate the contract
- The buyer may lose their deposit if they terminate the contract
- The developer may be unable to complete construction by the sunset date
If you are considering purchasing an off-the-plan property, consult with a solicitor to ensure that you understand the terms of the contract.
