Crackdown on alleged misuse of housing contract sunset clauses in SA
Legislation to stop homebuyers being left high and dry by developers misusing sunset clauses in contracts will soon be introduced to SA parliament, the state government says.
South Australian homebuyers may soon be shielded from developers exploiting sunset clauses in contracts, according to the state government. Legislation to address this issue will be introduced to parliament by the end of the year, following a developer's decision to cancel 75 contracts with homebuyers in Gawler East. Sunset clauses enable both parties to terminate contracts if off-the-plan properties are not completed by an agreed date, but can be abused by developers seeking to profit from rising property values.
The proposed reforms would require developers to obtain homeowners' consent before invoking a sunset clause, or seek court approval if deemed just and equitable. The government will conduct consultation in the coming weeks to finalize the legislation.
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