What is a sunset clause in an off the plan contract?
A sunset clause is a term in an off-the-plan contract that lets the contract be ended if the plan of subdivision has not been registered, or the building has not been certified for occupation, by a set date. As at October 2026, NSW and Queensland require a developer to have the buyer's consent or a Supreme Court order before relying on it (Queensland also allows situations set by regulation), but Queensland's rules leave out lots in community titles schemes, which can include townhouse projects. Victoria's position is not summarised here, and the Sale of Land Act 1962 is the Act to check.
Checked October 2026. Rules, rates and prices change, so confirm anything that matters with the source linked below.
How a sunset clause works
The NSW Government describes it as a provision requiring the plan to be registered, or an occupation certificate issued, by a set date, failing which either party can rescind the contract. It says off-the-plan contracts commonly include one. Because contracts can allow the date to be extended, the NSW Government lists the circumstances that extend it as a question to ask, so the extension wording matters as much as the date.
The Queensland Government says that before its 2023 reforms a seller could terminate if settlement did not occur by the specified date. The reforms in NSW and Queensland change that: the developer's right to cancel now runs through the buyer or a court.
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State by state
| State | When the developer can use it | Buyer's own rights |
|---|---|---|
| NSW | Only with each purchaser's written consent or a Supreme Court order (or where the regulations allow). The legislation as passed in 2018 requires at least 28 days' written notice | The restrictions apply to the vendor. The NSW Government describes a sunset clause as letting either party rescind if the date passes, so the contract wording decides who can use it |
| Victoria | Not set out on the official pages checked. The Sale of Land Act 1962 is the Act to check, so read the current Act or ask a Victorian conveyancer | Buyer may end the contract and get the deposit back if the plan of subdivision is not registered by the time in the contract, or by the default of 18 months (Consumer Affairs Victoria) |
| Queensland | From 22 November 2023, only with written consent, a Supreme Court order or another situation set by regulation. Excludes community titles scheme lots and linked or single house-and-land contracts | Buyer may terminate by written notice if the seller of a proposed lot has not settled within 18 months and the buyer has not defaulted |
| Western Australia | WA Consumer Protection describes sunset clauses as setting a contract end date and does not describe a consent or court rule | For strata lots, buyer may cancel if the agreed registration date is missed, or if more than six months have passed with no agreed date |
| South Australia | The SA Government page lists cancellation rights and deadlines as terms to check and does not describe a sunset rule | Same page |
For Tasmania, the ACT and the Northern Territory, check the relevant government.
NSW: notice, consent and the court test
In NSW, the vendor must give each purchaser written notice at least 28 days before the proposed rescission, saying why it proposes to rescind and why the sunset event has not occurred by the sunset date. The vendor can then rescind only if every purchaser consents in writing, the Supreme Court permits it, or the regulations allow it. The court can permit rescission only if satisfied that doing so is just and equitable in all the circumstances. These provisions are from the Conveyancing Act 1919 amendments as passed in 2018 (inserted as section 66ZS), and they generally do not apply to contracts made before the amendments commenced, so check the current Act with a conveyancer.
What the buyer gets when the clause is triggered
- Notice and a choice. In NSW the vendor's notice must give the reason for the proposed rescission and the reason the sunset event has not happened, at least 28 days beforehand.
- The deposit. In NSW the deposit must be held in trust and cannot be released to the vendor before settlement. In Victoria, Consumer Affairs Victoria says a buyer who ends the contract because the plan is not registered by the contract time, or the default 18 months, gets the deposit back. In Queensland, deposits can be released to the seller only at settlement or when the contract ends and the seller is entitled to them.
- A right to leave. Separately from the developer's route, the Victorian and Queensland rules above let a buyer end the contract after a long delay.
The Queensland gap for townhouses
The Queensland Government says the 2023 reforms limit sunset clause use in off-the-plan land contracts but do not include community titles schemes, and the Department of Justice adds that linked or single house-and-land contracts are also outside them. Some townhouse projects are structured as community titles schemes with a body corporate (the Queensland Government lists a townhouse complex among the things a community titles scheme can be), and others are sold as house-and-land. The Department has been reviewing the reforms: its consultation closed on 10 October 2025, and its page, last updated on 14 October 2025, said responses were being considered. Check the page for any later outcome. Which structure your project uses is a question for a Queensland solicitor, and do townhouses have strata or a body corporate explains the difference.
In NSW and Queensland a buyer can decline a developer's proposed rescission, and the developer would then need a court order or another route the law allows. In Queensland that protection depends on the title type.
What to read in the clause
- The sunset date, and the events that let it be extended, which the NSW Government lists as a question to ask.
- Whether it is triggered by plan registration, an occupation certificate, or both.
- Whether it appears alongside a variation clause that lets the developer change the product.
The wider contract checklist is in what to check in an off the plan contract.
Common questions
- Can a developer cancel and resell at a higher price?
Only through the routes above. In NSW and Queensland the Supreme Court is the alternative to the buyer's consent, and in NSW the court must be satisfied that rescission is just and equitable in all the circumstances. The rules do not remove a developer's right to cancel, they route it through consent or a court. For Victoria, check the Sale of Land Act 1962.
- Do I have to agree if the developer asks me to consent?
No. In NSW and Queensland the developer needs the buyer's written consent or a court order, so a buyer who is asked to consent can decline, and the developer's alternative is to apply to the Supreme Court. In NSW, the 2018 bill as passed has the vendor pay the buyer's costs of that application unless the vendor shows consent was unreasonably withheld. This is a decision to take with legal advice.
- Can I use the sunset clause to leave a contract?
The NSW Government describes a sunset clause as letting either party rescind when the date passes without the plan or certificate, so the contract wording matters. Victoria (by default, 18 months) and Queensland (18 months) also give buyers a separate right to end the contract where the plan is unregistered or the seller has not settled, as set out in the table.
- Do the reforms apply to contracts signed earlier?
It varies. Queensland applies its reforms to contracts signed but unsettled on 22 November 2023 and all later ones. For Victoria, check the commencement and transitional provisions in the Sale of Land Act 1962. NSW's 2018 amendments, as passed, generally do not apply to contracts made before they commenced.
- Is a sunset clause in every off the plan contract?
The NSW Government says off-the-plan contracts commonly include one. Whether yours does, and how far the developer can extend the date, is something a conveyancer can confirm from the contract.
Keep reading
Sources
- Buying property off the plan, NSW Government
- Conveyancing Legislation Amendment Bill 2018 as passed, NSW Parliament
- Buying off-the-plan, Consumer Affairs Victoria
- Sale of Land Act 1962, Victorian Legislation
- Buying off the plan, Queensland Government
- Stronger buyer protections for off the plan land sales, Queensland Government
- Role of the body corporate, Queensland Government
- Review of 2023 sunset clause reforms, Queensland Department of Justice
- Buying property off the plan, WA Consumer Protection
- Off-the-plan contracts, WA Consumer Protection
- Offers, auctions and buying off the plan, SA Government
This is general information, not financial, tax or legal advice. Get advice that suits your situation before you buy.