What Is a Sunset Clause in a Gold Coast Property Contract?
A sunset clause is a term in a property contract that sets a date by which certain things must happen. Most often, it’s used in off-the-plan contracts, where a buyer agrees to purchase a property that hasn’t been built yet.
The clause says: if the property isn’t completed by a certain date (the “sunset date”), either the buyer or the seller can cancel the contract. Sounds straightforward, but like many things in property, the devil is in the details.
Why Does a Sunset Clause Exist?
From the seller’s side, it offers a timeline for when a deal should be wrapped up. From the buyer’s side, it’s protection against excessive delays. In theory, it gives both parties clarity.
But in practice, especially in a fast-moving or uncertain market like the Gold Coast, it can become a grey area.
Off-the-Plan Sales: Where Sunset Clauses Really Matter
If you’re selling your home and planning to buy off-the-plan, this clause can impact your timelines.
Imagine this: you’ve sold your home, you’re ready to move, and you’re relying on your new apartment being finished by March. The sunset clause says the builder has until June. March comes and goes. Then April. Then May. And you’re stuck renting, juggling storage, and possibly wondering why you ever moved at all.
From a seller’s perspective, if you’re on the other end of a contract with a sunset clause, it’s worth knowing how it works and what risks it might carry.
Legal Rights and Responsibilities
In Queensland, and especially here on the Gold Coast, legislation has been introduced to help protect both parties from unfair use of sunset clauses.
In some high-profile cases, developers have used sunset clauses to cancel contracts with original buyers, only to relist properties at higher prices. It’s legal, but not always fair. That’s why laws have evolved to require more transparency.
As a result of the latest reforms, sellers (especially developers) now often require written consent from the buyer or approval from the Supreme Court to terminate a contract under a sunset clause.
If you’re selling and part of a development deal, or you’re considering accepting an offer that involves a buyer relying on an off-the-plan settlement, knowing your legal standing matters.
Recent Changes in Queensland Property Law
The Property Law Act 2023 introduced several reforms to modernise real estate transactions in Queensland. One of those changes tightened the rules around how sunset clauses can be exercised.
Here’s what matters to you:
- Termination under a sunset clause now requires buyer consent or court approval in many off-the-plan scenarios
- Disclosure requirements have increased, so buyers are more informed
- Sellers must act in good faith, especially when delays arise
These updates offer more stability but also mean contracts can be more complex. If you’re about to sign one, reading the fine print is more important than ever.
Tips for Sellers Navigating Sunset Clauses
You might not be a developer, but you could still be affected by these clauses. Especially if:
- You’re buying off-the-plan as your next home after selling
- You’re selling to a developer with long-term plans
- You’re unsure how to time your sale with your next purchase
Here are a few things to consider:
- Ask about the sunset date. If you’re buying, ensure it aligns with your timeline. If you’re selling to someone relying on an off-the-plan deal, ask them how it might affect your sale.
- Have a plan for the in-between. What if your next place isn’t ready on time? Consider short-term rentals or consult with your agent about potential lease-back options.
- Speak to your solicitor. Don’t rely on guesswork. Have someone review the contract with you so you understand your rights.
- Avoid assumptions. A sunset clause doesn’t always mean delays. But it also doesn’t guarantee smooth sailing.
Thinking About Selling? You’re Not Alone
You may be at a stage where the idea of selling your Gold Coast home is starting to occupy more mental space. Not quite ready to take the plunge, but curious. Wondering how the market’s moving. Asking yourself questions like: “Where do I even start?” or “What happens if the buyer pulls out?“
What You Might Not Hear From Other Agents
Some agents will gloss over the fine print. They’ll tell you everything will be fine, that these delays don’t happen often. Maybe that’s true. But maybe it’s not.
The reality is, Gold Coast property can move fast, and not everything goes to plan. Delays in construction, finance, or even local council approvals can all push that sunset date further than you’d like.
When you’re selling your Gold Coast home, it’s okay to ask the hard questions. It’s okay to want real clarity about what you’re signing.
How to Keep Your Options Open
You don’t need to rush into a decision. Just understanding what a sunset clause means puts you ahead of many sellers.
Here are a few non-committal things you can do right now:
- Start a “move folder.” Whether it’s a Google Drive or a drawer in your kitchen, keep notes, property prep ideas, financial estimates, and questions all in one place.
- Talk to your bank or broker. You’re not locking anything in. Just get a sense of what your financial position might be if you did decide to sell.
- Look into short-term housing options. Even just knowing what’s out there can help you feel less boxed in.
- Imagine what next could look like. You don’t have to know exactly where you want to live. Just thinking about lifestyle, location, or what matters most to you can help bring clarity.
- Stay updated on the market. If you’re not ready to talk to an agent, that’s okay. Even a simple in-person appraisal can help you understand your current position.
Selling Your Gold Coast Home: Be Informed, Not Pressured
Sunset clauses aren’t something to be afraid of. But they are something to understand. The more you know now, the fewer surprises you’ll face later.
You don’t have to figure this all out in a day. Selling your Gold Coast home is a big step, and it’s normal to feel unsure at first. Whether you’re months away from doing anything or just want to learn the ropes, that curiosity is a great place to begin.
No pressure. No expectations. Just honest guidance from someone who’s been around this space for a while. And if I don’t know the answer, I’ll ask the right questions and find it for you.
THIS IS HOW YOUR JOURNEY TO A SUCCESSFUL GOLD COAST PROPERTY SALE STARTS
My simplified guide below will take you through a 20-step process for selling your property anywhere on the Gold Coast;
I proudly sell homes across the entire coast.
1. PREPARING YOUR GOLD COAST PROPERTY FOR SALE + SOME OF THE LEGAL REQUIREMENTS
- Tidying gardens and decluttering everything inside and out.
- All homes for sale, are legally required to have hardwired photoelectric, interconnected smoke alarms.
Non-removable 10-year battery smoke alarms can be installed as an alternative.
- By law, you are required to complete a pre-contractual seller’s disclosure statement: generally related to limitations, restraints, or defects in the property title, such as easements, covenants, leasing, zoning, etc.
- A pool safety certificate is also required if you have a swimming pool or if the property has a shared swimming pool (Body Corporate).
2. COMPARATIVE MARKET ANALYSIS REPORT FOR YOUR GOLD COAST PROPERTY
After showing me around your property, I will provide you with a Comparative Market Analysis (CMA) report. This is a detailed, legally required analysis of your home’s market value.
The CMA is based on recently sold and for-sale properties similar to yours in the immediate area. I will need to view your home to prepare this report.
3. SETTING A MARKETING BUDGET FOR YOUR GOLD COAST HOME
The third step in selling your home is to create a marketing budget.
By law, this must be based on actual costs.
There are various marketing options to consider, such as:
– Internal, External and Drone Photography.
– Property and House Plans show potential buyers the exact layout of your home and property.
– Internet Advertising on platforms such as RealEstate.com.au, Domain.com.au, Facebook.com, Instagram.com, etc.
– For Sale Sign on the street is still essential to attracting potential buyers. Even though many buyers start their search online, they often drive around neighbourhoods to see what’s available.
A simple fact: Not having a For Sale sign can significantly reduce the number of people who see your property and may be interested in buying it.
4. PREPARING AND APPROVING THE FORM 6 AGREEMENT WHEN SELLING A GOLD COAST PROPERTY
A Form 6 Agreement is a document provided by the Queensland State Government. It outlines all relevant details of the property sale, including the marketing budget.
Our administration team will prepare this form for you and send it for your review and approval.
5. PAYING THE MARKETING BUDGET FOR YOUR GOLD COAST PROPERTY
Once you have approved the Form 6 Agreement, the next step is to pay for the marketing budget that you have chosen.
6. STARTING THE ADVERTISING PROCESS
Once your payment is received, the advertising campaign will commence.
Advertising strategies will align with the choices you made within your marketing budget.
7. MONITORING MARKET RESPONSE
If your property hasn’t received offers within 30 days, don’t assume there’s no interest.
It often means the price isn’t aligned with what buyers are willing to pay at this time.
This is your signal to review and adjust your pricing strategy so your home remains competitive and receives the attention it deserves.
8. ARRANGING BUYER VIEWINGS
When buyers express interest in your property, viewings will be arranged to allow them to see your home in person; you need to be away from the property during these viewings.
This helps potential buyers feel relaxed and visualise themselves as the new owners, thereby forming a deeper connection with your property.
9. CONSIDERING A BUYER’S OFFER
When you receive an offer on your home, it means a buyer is serious and ready to move forward at a certain price.
This is a key moment in your selling journey. Take the time to go over the offer carefully.
Look beyond the price; check the terms, conditions, and settlement timeframes. Make sure it works for you before accepting, countering, or declining.
10. ACCEPT, COUNTER, REJECT
When an offer is presented, you will need to respond by accepting, countering, or rejecting it.
Accepting locks in the agreed-upon price and terms.
Countering proposes changes and initiates further negotiations. If countering, present revised terms clearly; open, respectful communication is key for a smooth sale.
Rejecting means the offer is unacceptable; in this case, respond promptly and professionally, explaining your reasoning for the decision.
11. YOUR LEGALITIES
When you finally accept an offer, you will engage your conveyancer or solicitor to facilitate the legal requirements to complete the sale.
If you are part of a Body Corporate, you will need to provide a Disclosure Statement from them.
Your solicitor will use PEXA to settle your property. Part of the process requires Verification of Identity. Also, anyone selling a property must complete an ATO Clearance Certificate.
12. BUYER’S DEPOSIT
The buyer’s deposit is a crucial step in the property purchase process; it will be held in the agency’s Trust account.
This is a tangible expression of the buyer’s commitment to purchase your property.
13. BUILDING AND PEST INSPECTIONS
Typically, a buyer will arrange for a building and pest inspection report to be completed, usually within 14 days of the contract date.
Additionally, they may have the contract subject to finance, which is generally applicable for 21 days from the contract date.
14. COMPLETING YOUR GOLD COAST PROPERTY SALE
Based on the outcome of the building and pest inspection report, as well as any finance being sought, the buyer will proceed with their offer or withdraw it.
At this point, the sale either falls through or becomes unconditional.
15. LOOKING FOR YOUR NEW PROPERTY
If the sale becomes unconditional, it is time to start looking for a new property. Remember, there is no need to rush.
It is essential that you take your time, as this needs to be a very considered purchase.
Your new home is of substantial value and can be costly if you change your mind. Something you may want to investigate is Short-Term Bridging Loans.
16. ALTERNATIVES YOU SHOULD CONSIDER
An alternative to seriously consider when deciding where to live between selling and buying is renting while you look for a new property.
Renting for a short period gives you breathing room; it allows you time to clear your head, make a confident, considered decision, and ultimately buy where you truly want to live, with no pressure or panic.
17. TIME FOR YOU TO MOVE
Leaving your home opens doors to a new chapter full of new beginnings. Embrace the excitement of a fresh start and cherish the memories you’ve made.
Every box you pack brings you one step closer to a new adventure full of possibilities that lie ahead.
18. YOUR SALE CONCLUDES
The culmination of the property sale is settlement; it marks the transfer of the property to the new buyer.
As the final chapter concludes, this marks a sense of achievement: your property has now SOLD.
19. YOUR FUTURE OPTIONS
If you have chosen to rent, you will continue to look for and eventually purchase a property, apartment, or perhaps even buy land and build; now there’s something to consider.
20. TIME TO UNWIND AND MAKE YOUR NEW HOME YOUR OWN
As you unpack and furnish your new home, embrace the gradual process of creating your haven.
Enjoy the transformation, one room at a time.
Relax in the tranquillity of your surroundings and immerse yourself in the gentle sounds of your new neighbourhood.
Explore the nearby parks and cafes; enjoy the unique charm of your new community.
Remember, settling in is a journey in itself; it’s not a race. Embrace the process of creating a home that reflects your unique style and personality.
Whether you’re downsizing, relocating or just ready to move on, I’ll guide you through every step of selling your Gold Coast home with confidence and ease.
Navigating the intricacies of selling your property can be complex, but it doesn’t have to be.
My 20-step guide provides a simplified general overview; as you would naturally expect, your steps may vary.
Author – Craig Douglas
Are you ready for a conversation about selling your Gold Coast home?
Let’s get you Selling
LET’S GET YOU SOLD
Craig Douglas 0418 189 963
Professional | Knowledgeable | Experienced
You can find me working at a Boutique Real Estate Agency
These are just some of the suburbs that I proudly sell homes in:
Nobby Beach
Please Note: The information contained in this document is for general information purposes only and does not constitute legal advice. The laws and regulations governing the sale of property in Queensland are complex and constantly changing. It is important to seek the advice of a qualified property lawyer or conveyancer before making any decisions about the sale of your property. This document does not take into account your individual circumstances and may not apply to your situation. By reading this document you agree that you have not relied on the information contained herein and that you will seek independent legal advice before taking any action.
This page was proudly created by Craig Douglas, your local independent Gold Coast real estate agent, working for a Boutique Real Estate Agency. Selling residential and commercial properties, from those that are awe-inspiring, through to a diamond-in-the-rough, otherwise known as a “renovator’s delight“.
I negotiate and sell on behalf of property owners who want to get the best possible price, with the least amount of hassle. Let’s talk about the process of selling your property over a coffee to get you started – 0418 189 963
