Developers using sunset clauses to recapture Covid losses

Author
Newstalk ZB,
Publish Date
Tue, 16 Nov 2021, 7:47PM
(Photo / File)
(Photo / File)

Developers using sunset clauses to recapture Covid losses

Author
Newstalk ZB,
Publish Date
Tue, 16 Nov 2021, 7:47PM

More and more property developers seem to be using sunset clauses to back out of contracts and sell new builds for a higher price to someone else.  

Sometimes home buyers get an opportunity to pay a new, higher price and sometimes they lose their almost-home altogether.  

Auckland Property lawyer Joanna Pidgeon told Heather du Plessis-Allan this is being used increasingly. 

“Times are tough for developers at the moment. Sometimes they’re seeking to recapture some of their losses by cancelling and on selling for more.” 

She said this isn’t what the sunset clause was designed for.  

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