Queenslanders are being asked for their views about off-the-plan home contracts with the state government considering law reforms.
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Attorney-General Shannon Fentiman says buyers are concerned about the use of sunset clauses by property developers to terminate contracts and the early release of buyer deposits to developers.
She says a review is timely with more off-the-plan contracts being signed as the state's population has continued to boom since the pandemic.
About 73,700 people moved to Queensland last calendar year with the population rising 1.4 per cent in 2021, the highest growth rate in the nation.
"Since the pandemic we have seen more people move to Queensland, resulting in growing property sales including buying 'off the plan' developments," Ms Fentiman said in a statement on Monday.
"I am aware of recent reports of developers terminating contracts for "off the plan" sale of land if the contract is not settled within a specified timeframe.
"At the same time, property prices have been rising, which may leave these buyers with limited or no options within their budget.
"That's why the Palaszczuk government is asking both home buyers and property developers to have their say on these residential property laws."
The government has launched two online surveys about the contracts - for buyers and for developers - on the Office of Fair Trading website.
Off-the-plan contacts have become more popular in Queensland, particularly in the heavily-populated southeast where the housing market has tightened since the pandemic.
The median house price in Brisbane has risen by 20.22 per cent in the 12 months to March, according to the Real Estate Institute of Queensland.
Ms Fentiman warned prospective buyers to be wary about signing purchase contracts.
"Off the plan residential property contracts are complex and involve non-standard terms," she said.
"They also involve risks for both the developer and buyer, such as changing property values over the period of the contract.
"I strongly urge anyone looking to buy off the plan to seek legal advice before signing a contract."
The attorney-general said submissions will close on September 14.
Australian Associated Press
