THE SUN NEVER SETS ON CLAUSE QUERIES
Q I’ve got a new build under construction, where the timeline has blown out and we are getting close to the sunset clause date. I’m worried that the developer will cancel and put up the price. Is there anything I can do? Can I claim a breach of the Fair Trading Act if they’re intentionally slowing down construction?
A Questions about sunset clauses are difficult to answer in the abstract. Ultimately the outcome will be dependent on what the actual clause says. For example, a sunset clause can be inserted for the benefit of the purchaser, vendor or both. There can be conditions or limitations on the right to cancel.
There can be requirements that a vendor/developer take all reasonable steps to obtain consent (building or resource consent), to undertake certain works, etc, before invoking the sunset clause.
And there can be other clauses
