Queensland close sunset clause 'loophole' for property developers
Property buyers in Queensland have been given greater protections with new laws passed closing a sunset clause loophole. The clause had previously been used by unscrupulous developers to resell properties at a higher price, making it more difficult to enter the housing market.
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00:00 When Andrew Maloney and his wife bought a block of land in the scenic rim to build their dream home on,
00:07 they didn't expect to be left with nothing a year later.
00:11 We had some amazing views. We were looking at developing our forever home,
00:15 so something which would live into our retirement.
00:17 The couple put a deposit on a $435,000 lot in Canungra in late 2020.
00:24 Despite being told their builder could start construction within months, work on the block stalled.
00:31 We started getting quite upset about delays and nothing was being done.
00:35 More than a year later, their contract was terminated by the developer so the lots could be resold at a higher price.
00:42 While the couple had their deposit returned, they were left worse off as land values had soared.
00:48 We were basically kicked to the curb and we then had to go back into the market and we've lost that competitive edge of getting into buying a block of land at the right time.
00:59 Stories like this have prompted law changes in Queensland.
01:03 The aim is to close that loophole.
01:05 Now a sunset clause can only be invoked by a developer with the written consent of the buyer,
01:11 under an order of the Supreme Court or in another situation prescribed by regulation.
01:17 The Attorney-General says the state noticed a spike in reports of developers misusing the clause during the pandemic.
01:24 I think it was definitely exacerbated through COVID.
01:28 I'm sure these practices were probably happening here and there.
01:31 Like the rest of the country, Queensland's building industry has faced challenges in the past few years,
01:38 like supply chain issues, labour shortages and increased costs to building supplies.
01:44 The body representing developers wrote in a submission it strongly recommended against the laws,
01:50 saying it will have consequential and serious impacts on financing arrangements, adding to housing delivery uncertainty.
01:59 The laws will be reviewed within the next couple of years.
02:02 is.
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