When purchasing any property off plan, be it apartments or a house and land package, the contract will have what is called a Sunset Date. The Sunset Date is the day by which the developer is able to fulfil their obligations as stipulated in the contract, the contract may be rescinded without penalty by either party. Usually, that is if they were unable to complete the project by the Sunset Date.
A Sunset Date is always at least 24 months, but in many cases it can be up to 48 months after the anticipated date of completion and settlement for the property. This is not a reflection on how far completion and settlement truly is, but a condition that is usually set by the bank financing the construction loan to protect themselves should there be any unforeseen delays in the construction phase. This is standard practice with all new construction and the developer usually does not have any lee way as they risk losing funding approval for construction by the partnered bank lender.
It also serves to protect the buyer, providing certainty that should the developer not be able to deliver the property within a definite time period, they are entitled to their 10% deposit back in full that has been held securely in a trust account for them.
Find out more about sunset dates in our article, "What is a Sunset Clause in Off the Plan Contracts?".