The sunset date is the long stop for registration. Under section 9AE the buyer has a statutory right to end an off the plan contract if the plan is not registered within the default statutory period, commonly eighteen months, unless the contract specifies another period. The registration period must be specific, and extensions for matters such as inclement weather are not allowed.
Vendors often also include a contractual right to terminate if registration is not achieved by the sunset date. Because some vendors used that right to exit contracts in a rising market and resell for more, the Sale of Land Act 1962 was amended so that a vendor seeking to rely on a sunset clause for a residential contract must obtain either the buyer's written consent or a Supreme Court order. Section 10A requires rescission under a sunset clause to be in accordance with the Act, and section 10C overrides any inconsistent contractual provision.
To seek consent under section 10B, the vendor must give the buyer twenty eight days notice setting out the reason for the proposed rescission, the reason for the delay in registration, and advice that the buyer is not obliged to consent. On an application under section 10D the Court weighs various matters including any increase in value, may order compensation to the buyer, and makes the vendor liable for the buyer's costs. A vendor is not likely to accept a contractual obligation to use best endeavours to register in time, but a common law obligation to do so most likely exists.
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A buyer is not obliged to consent to a vendor's sunset rescission and should take advice before signing any consent. The buyer's own right to end the contract if registration is late is separate and remains available.
Law referenced: Sale of Land Act 1962 ss 9AE, 10A, 10B, 10C, 10D, 10F.