A sunset clause is a provision within a Victorian property sale contract that specifies a final date for completion of the sale. If settlement hasn’t occurred by this date, either the buyer or the seller – as stipulated in the clause – typically has the right to terminate the contract.
Currently in Melbourne, sunset clauses are commonly included in off-the-plan purchases, particularly in apartment developments across areas like Box Hill and Doncaster. However, they also appear in standard house sales, especially where there are complex conditions like a requirement for vacant possession or lengthy financial arrangements. As of December 2025, we’re seeing clauses ranging from 30 to 90 days, though longer periods are possible. In 2026, buyers are increasingly scrutinising these clauses, given recent market fluctuations. A sunset clause protects both parties; for sellers, it provides a definitive end to the sale process, while buyers avoid being locked into a purchase indefinitely if, for example, finance falls through. It’s important to realise that the specific terms of a sunset clause are negotiable during contract review. Fletchers’ experienced conveyancers can help explain the implications of any clause within a contract.
Ultimately, a sunset clause sets a time limit on the property transaction, offering a degree of certainty for both the seller and the buyer.