In this blog/video, we unpack how a luxury developer recently got stung $6.1m over a sunset clause.

We explain what happened with this landmark case, as well as a few hot tips that every Queensland buyer should know when it comes to off-the-plan purchases!

Prefer to watch/listen? Click here to consume this content via YouTube!

Hi everybody - George Sourris, Empire Legal.

Today's topic: Luxury developer recently stung $6.1m over sunset clause - what every Queensland buyer should know!

Story time. Buying off-the-plan in Queensland can feel like locking in tomorrow's dream apartment for today's price. But as a recent Supreme Court decision shows there are serious risks hidden in the fine print, especially around sunset clauses.

Only three months ago in June 2025, Chief Justice Helen Bowskill ordered a luxury Brisbane developer to pay $6.1 million in damages, after an unlawful attempt to terminate an off-the-plan contract.

The case involving Cavorp's prestigious Luminaire building in Newstead is a timely reminder of why every buyer should tread carefully with off-the-plan  contracts. 

What is a sunset clause?

A sunset clause is a standard feature in most off-the-plan contracts in Queensland. It sets a deadline, the "sunset date" by which construction and registration of titles must be completed. If the project finishes before the sunset date, settlement proceeds as normal. If the project isn't finalised by the sunset date, either the buyer or seller may be able to terminate the contract.

The original purpose of these clauses was to protect buyers from being left in limbo indefinitely while waiting for a project to be finished. But in practice, sunset clauses can be used in ways that don't always favor the buyer.

Four ways why sunset causes are risky to buyers.

Number 1 - developers may gain if values rise. So in a booming market, a developer could be tempted to let a contract lapse under a sunset clause and resell the property for more.

Number 2 - delays are common. Weather events, labour shortages, supply chain issues, or planning approval complications are all frequent excuses for extensions. And of course, we've got all the dramas in Queensland with the CFMEU.

Number 3 - limited bargaining power. Once you've signed, you're often locked in, even if delays stretch years beyond the original expectations.

Number 4 - uncertainty for finance. Banks usually won't hold loan applications for years. In fact, it's usually 90 days. So buyers can be left exposed if projects drag out and circumstances change.

The Luminaire case.

What happened? In 2017, Brisbane businesswoman Yiping Jiang signed contracts to buy two sub penthouses in Luminaire development for $4.2 million. By 2023, market conditions had pushed their combined values to more than $10 million. The developer terminated the contracts under the sunset clause, blaming delays to planning, supply chains, floods, and the COVID pandemic.

The apartments were later resold for $8.8 million. Chief Justice Bowskill ruled the termination was "unlawful, invalid, and of no effect". The original contracts remained on foot, and Ms. Jiang was awarded $6.1 million in damages - the difference between the market value and the contract price. 

Oh, and Ms Jiang was also entitled to retain her $420,000 deposit, the Chief Justice ruled.

In this case, the sunset clause allowed termination only if the developer could not give notice of title within 5.5 years of the contract date. The titles were in fact issued before the deadline, which means the developer could have given notice - it wasn't impossible. The court made it clear that "cannot" literally means unable to, not simply choosing not to.

The developer argued that delays in construction and approvals meant settlement couldn't realistically occur, but the court rejected this.  The clause only dealt with the title registration, not whether the building was complete. Because titles were issued, there was no genuine basis to rely on the sunset clause.

This case shows how tightly courts will interpret sunset clauses, and why buyers should understand exactly what the wording does and doesn't cover before signing an off-the-plan contract. It was a rare win for this buyer, but only years after legal battles, and of course, huge expenses and stress. 

Queensland updated its off-the-plan laws in 2023.

Sunset clause termination requires buyer's written consent, or Supreme Court order, but only for land contracts, not apartments or strata. It's a step in the right direction, but still leaves buyers in body corporates in Queensland exposed for off-the-plan purchases.

Another recent Gold Coast case saw off-the-plan buyers being asked to pay up to $1 million dollars more to retain their contracts as sunset dates approached. Demonstrating how the clause can still be used for financial leverage for developers. The value of the residences had increased significantly, and the only way to secure the property was for the off-the-plan contracted buyers to cough up more money to proceed, or risk the developer terminating under the sunset clause and selling to someone else for more.

What buyers should know in Queensland.

Queensland law has recognised the potential for misuse of sunset clauses. For residential contracts, contracts can be drafted in ways that still expose buyers to risk, especially if the clause is broad and poorly understood. Some developers build in very long sunset dates, which means buyers can be tied up for years with little certainty.

This is why independent legal advice is essential BEFORE signing. A lawyer can explain whether the sunset clause is reasonable, if there's any safeguards preventing termination without your consent, and the practical risks if the project faces delays.

How to protect yourself when buying off-the-plan.

Seek advice before signing. Always have your contract reviewed by a property lawyer. Ask the right questions. What is the sunset date? Can it be extended? Who holds the power to terminate? Know the risk appetite. If you can't tolerate years of uncertainty or potential disputes, an established property may be a safer option for you.

And let's not forget the uncertainty of finance. Again, we said only 90 days an approval will be held for, traditionally - you'd have to reapply when the lot registers. And of course, document everything. Keeping all correspondence with the developer in case issues arise later.

Wrapping it all up.

Off-the-plan purchases can be exciting, but sunset clauses mean you're not always in control. The Luminaire example shows just how high the stakes can be when things go wrong - with millions of dollars on the line.

At Empire Legal, we've helped over 12,000 Queenslanders buy and sell property contracts, navigating complex off-the-plan matters. If you're considering buying off-the-plan, we'll review your contract upfront so you can move forward with confidence, not risk, and of course - sleep at night. Thanks guys.

Guys, please like, subscribe and share. We want the algorithm to find us so we can help more Queenslanders buying and selling property across the State. Thanks, we'll see you next week.

What you want when you're picking a provider to work with is a trusted choice. If you're thinking about engaging someone else, just Google them. Read their reviews. That'll be the true test, what the public says about that company. All the information you need to get started is on our website. Check out our Instagram and if we look like a good fit for your brand, all you need to do is refer us to your clients and we'll take care of the rest.

Guys, that's it for this week. Hope you learned a thing or two. Please feel free to get in touch if you've got any questions. Empire Legal - happy to help. Queensland's trusted choice for conveyancing. Over 2,700 Google reviews with a five star average. There's not many firms out there that have that five star average. With that many reviews, guys, and not to mention over 12,000 deals settled. Thanks guys. We'll see you next week.

Finally, if you haven't heard, we've launched our podcast. It's called Raising the Bar, where we story tell excellence in Queensland property. Here is the link to listen. If you prefer to watch, here is the YouTube link.

Also, stay up to date with our miniseries on Seller's Disclosure.

Thanks guys. We'll see you next week!

If you know anyone that is involved in Queensland property, or is just genuinely curious - send them our page, send them our channel. It's all free content. We just want to help you be armed with the tools to make good decisions. Check out our website for more blogs. We've got over 100! 

We want to help you. If you've been listening to us for a while, but you haven't made contact, please do! We want to help people buy and sell homes and deliver QLD's best conveyancing experience. Thanks guys, we'll see you next week.

Subscribe to our YouTube and our blog. We're giving out this content for FREE to help you and your peers. Spread the good word of Empire Legal. We want to help everyone make property law in Queensland easy and smooth sailing. 

If you have any questions, you can email me: george@empirelegal.com.au. 

If this has added value, please share this blog / the YouTube video with a friend. 

Thanks for reading everybody. See you on the next one.

Ladies and gentlemen, please keep in mind that all advice is general in nature and does not constitute legal advice. This is authorised by George Sourris, Empire Legal, Brisbane, Queensland, Australia.

---------------------------------------

We can help…

For simple, sunny, smooth sailing conveyancing - Empire Legal.

We look forward to continuing to help thousands of Queenslanders every year with their conveyancing!

Any questions? Want to know more? Get in contact with us via the below form or via info@empirelegal.com.au.

Note: all information is general in nature and as each matter is unique please contact our office for tailored advices: the above does not constitute legal advice.