Protecting Buyers' Rights in Off-the-Plan Contracts
- kemartin18
- Apr 28
- 2 min read
In Queensland's dynamic property market, purchasing off-the-plan properties has become a popular choice for buyers seeking modern homes or investment opportunities. However, this process is not without its challenges. Developers occasionally terminate off-the-plan contracts or fail to take adequate steps to progress developments, leaving buyers in precarious situations. Understanding your rights as a buyer and seeking timely legal assistance can make all the difference.
The Risks of Off-the-Plan Contracts
Off-the-plan contracts allow buyers to secure properties before construction is complete. While this offers advantages such as locking in prices and accessing new developments, it also comes with risks. Delays in construction, market fluctuations, and the use of developer friendly contract clauses—such as sunset clauses—can jeopardise buyers' investments.
Sunset clauses, for instance, set a deadline for project completion. If the deadline is not met, either party may terminate the contract. Unfortunately, some developers exploit these clauses to cancel contracts and resell properties at higher prices, capitalising on rising market values. This practice has left many buyers without properties, out of pocket for legal and other expenses and struggling to re-enter the market.
Developers' Obligations and Buyers' Rights
Developers are legally obligated to act in good faith and adhere to the terms of the contract. They must take reasonable steps to progress construction and meet agreed timelines. If a developer fails to do so or terminates a contract unfairly, buyers may have legal recourse.
Recent legislative changes in Queensland have strengthened protections for buyers. For example, amendments to the Property Law Act now require developers, in certain circumstances, to obtain buyers' written consent or a court order before terminating contracts under sunset clauses. These reforms aim to give greater security for buyers however, unfortunately at this stage the amendments relate only to the sale of unregistered land and do not extend to the “off the plan” sale of apartments or townhouses.
How We Can Assist
Shand Taylor Lawyers specialises in property law and dispute resolution.
Our experienced team is dedicated to protecting buyers' rights and ensuring fair outcomes in property disputes.
Here's how we can help:
Contract Review and Advice: We provide comprehensive reviews of off-the-plan contracts, identifying potential risks and advising on your rights and obligations so that you have the opportunity to negotiate with the developer from an informed position.
Dispute resolution: If one party has failed to progress construction or terminated your contract without grounds, we can represent you in negotiations or commence legal proceedings to seek performance of the contract or compensation.
Conclusion
Navigating property disputes can be complex.
If you're dealing with issues related to off-the-plan contracts, our team at Shand Taylor Lawyers is here to guide you every step of the way.
For Contract Review and Advice, please contact:
Patrick Sherlock, Director
(07) 3307 4542
For Dispute Resolution, please contact:
Kimberley Forman, Director
(07) 3307 4523
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