Sunset Clause Laws Pass Parliament
Channel: NSW Department of Customer Service
Date: 19/11/2015

I am pleased that the NSW Parliament yesterday approved amendments to the Conveyancing Act 1919, strengthening protections for buyers who purchase properties off the plan.

These new laws are intended to prevent rogue developers from rescinding contracts using the sunset clause to make windfall profits.

Effective from 2 November 2015, developers must gain the consent of a purchaser before rescinding a contract using a sunset clause.

If consent is not given then the developer must apply to the Supreme Court to justify the proposed termination.

I am also very pleased to see that these measures attracted bi-partisan support from across the chamber.

Thank you to all those who contacted my office urging these reforms to be enacted sooner rather than later, it is because of you that developers can no longer exploit this loophole.

Read about the media release here: https://www.finance.nsw.gov.au/about-us/media-releases/plan-protections-secured