The Palaszczuk Government wants to hear from home buyers and developers to inform possible reforms to better protect property buyers who have signed an ‘off the plan’ contract.
Attorney-General and Minister for Justice Shannon Fentiman said she has listened to the concerns of buyers around ‘off the plan’ contracts, including the impact of seller supported ‘sunset clauses’ on Queensland buyers.
“Since the pandemic we have seen more people move to Queensland, resulting in growing property sales including buying ‘off the plan’ developments,” the Attorney said.
“I am aware of recent reports of developers terminating contracts for “off the plan” sale of land if the contract is not settled within a specified timeframe.
“At the same time, property prices have been rising, which may leave these buyers with limited or no options within their budget.
“That’s why the Palaszczuk Government is asking both home buyers and property developers to have their say on these residential property laws.”
Member for Gaven Meaghan Scanlon said since the pandemic more people were moving to the Gold Coast, resulting industry planning for and developing more housing supply.
“Buying a home is one of the biggest decisions and investments Queenslanders will make in their lifetime – so it’s really important that they’re protected when entering a contract for an off the plan development,” Ms Scanlon said.
“I would encourage property buyers and industry on the Gold Coast to have their say through the online surveys.”
Two key issues that have emerged in relation to off the plan property contracts are being examined as part of the government’s Property Law Review:
- use of sunset clauses by property developers to terminate contracts, and
- early release of buyer deposits to property developers.”
There are two online surveys – one for buyers and one for property developers. Both surveys are on the Office of Fair Trading website:
As property law is a complex area that applies to a range of different circumstances, it is important that all stakeholders have their say to ensure any legislative solutions to the issues being faced do not have unintended consequences.
The Attorney-General recommended caution when signing a purchase contract.
“Off the plan residential property contracts are complex and involve non-standard terms,” she said.
“They also involve risks for both the developer and buyer, such as changing property values over the period of the contract.
“I strongly urge anyone looking to buy off the plan to seek legal advice before signing a contract.”
The consultation will close on 14 September 2022.
