Building Your New Home – Why Include A Sunset Clause?

When building a new home, there are several important steps in the process that have potential to delay final completion date. In some circumstances, for example, you may be waiting for a subdivision and new title to issue, or there may be an issue with the build that delays or prevents the issue of the Code Compliance Certificate (‘CCC’).

Delays do not automatically give you a right to cancel a contract. It is important, therefore, to protect your position in the event of unforeseen delays.

A “sunset clause” sets a date by which something must happen – this may be issue of the certificate of title for the property or the CCC. Where the date set down passes and the title or CCC hasn’t been issued, you can cancel the agreement and avoid being locked into an agreement indefinitely.