In the case of Silver Star Fashions Pty Ltd v Dal Broi [2018] NSWSC 1445 a landmark decision was made prohibiting developers from using sunset clauses to rescind a contract. The case involved a developer of a new block of apartments and 12 buyers who had bought the apartments off the plan. The Court heard that the developers claimed to be within their rights to renege on the contracts made with the buyers, as building delays had pushed the completion deadline beyond the date of the sunset clause. The buyers argued that due to the rising property market, the developers were attempting to withdraw their contracts in order to sell the apartments for a higher price. This case was important as it tested the 2015 amendments made to the Conveyancing Act 1919 (NSW) that now requires buyers to consent in writing to the revocation of a contract or for the vendor to acquire an order from the Supreme Court that permits the rescission of the contract. Justice Drake ruled that the developer had acted unjustly and that the contracts could not be rescinded unilaterally. The Court also ordered the developer to pay the legal costs of the 12 buyers. This decision highlights the importance of seeking legal advice when buying properties off a plan.

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