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Buying an apartment off the plan is like buying a pizza - you need to wait until it is ready.

The waiting time for the new apartment can be two or more years. The date predicted for completion is known as the sunset date. If the building is not completed by the sunset date, then the vendor and the purchaser can each terminate the sale contract.

What if the property market rises in the meantime, making the sale price look like a bargain? Is it not possible that a property developer might use the sunset clause to terminate (the legal term is rescind) the sales contract and re-sell the apartment at a higher price?

After receiving many complaints about developers who used sunset clauses to terminate contracts, leaving purchasers with only their deposit back and being unable to afford a replacement property because the property market had risen, the NSW Government has taken action to limit the use of sunset clauses by property developers in off the plan sales.

For more information see