A campaign to protect homebuyers from dodgy developers has been given the thumbs up with the State Government passing changes to the Sale of Land Act stopping the abuse of sunset clauses.
The new laws now mean developers can only exercise a sunset clause in a Contract of Sale for land with written consent from the buyer or by an order of the Supreme Court of Victoria.
Mayor Lawrie Cox said the news would be welcomed by homebuyers, many of whom had been impacted by sunset clauses.
“Council has been aware of this issue impacting our residents for quite a while and resolved last year to lobby the state government about it,” he said.
“We are pleased that the government has shared our concern and acted to stop this practice that takes advantage of people who are trying to secure their piece of land to build a family home.”
Cr Cox said sunset clauses had often been included in a contract where lots or a development was sold off the plan before titles were issued.
Often the clause would state that if a title was not issued within two years the contract was null and void leaving buyers without their land and often with financial issues.
“We know that some developers were using the sunset clause to cancel contracts and re-sell the land for a higher price,” he said.
“We are pleased that the state government has taken action to stop this practice.”