Seller's Remorse Is Real: What Queensland Property Sellers Need to Know Before They Try to Exit a Contract
Most people have heard of buyer's remorse. But if you spend any time in a Queensland property law firm, you quickly learn that seller's remorse is just as real and considerably more complicated.
At QC Law, we have seen a significant rise in sellers seeking to get out of contracts, particularly over the past few years, as property values across southeast Queensland surged well beyond what anyone anticipated when those contracts were originally signed. Developers and private sellers alike have come to us asking the same question: "I signed this contract a year ago, and the property is now worth $100,000 more. How do I get out?"
The honest answer is rarely what they want to hear. But understanding why and what your actual options are could save you from making a very expensive mistake.
Once You Sign, You Are In
In Queensland, the moment a seller signs a contract, they are bound by it. There is no cooling-off period for sellers. That protection exists only for buyers, and even then, it can be waived.
This is a fundamental aspect of Queensland property law that many sellers do not fully appreciate until they are already in a contract they would rather not be in. Unlike buyers, who have certain contractual conditions and statutory rights to fall back on, a seller who simply changes their mind has virtually no legal avenue to walk away.
The only real exceptions arise when the buyer fails to meet their obligations under the contract on time. If a buyer has a finance condition and does not satisfy or waive it by the agreed date, the seller may be able to terminate the contract. If a building and pest condition expires without the buyer acting on it, again, the seller may have grounds to bring the contract to an end.
This is exactly the kind of situation we see in a rising market. A seller who has second thoughts will often find themselves watching very closely for any missed deadline or technical default on the buyer's side, hoping for an out. It is not exactly a comfortable position for anyone involved, and it highlights why getting the contract right from the very beginning matters so much.
The Off-the-Plan Problem
The seller's remorse issue has been particularly pronounced in the off-the-plan market, where contracts are signed months or sometimes years before settlement.
During the COVID years and the property boom that followed, we saw a pattern emerge: developers had entered into contracts at one price point, only to find that by the time they were ready to settle, the value of the land or units had increased dramatically, sometimes doubling. Suddenly, a developer who was locked in at $400,000 was watching comparable properties sell for $600,000 or more.
In some cases, developers looked to the sunset clause as a potential exit. A sunset clause sets a deadline for completing the development. If that deadline passes without the property being registered or the contract settled, either party historically had the right to terminate.
What we saw happen, and what the Queensland government responded to with legislative change, was developers deliberately allowing projects to drag on until the sunset date approached, then terminating contracts with buyers who had been waiting in good faith for sometimes 18 months or more, only to reoffer those same properties to the market at a significantly higher price.
In some cases, the original buyer was approached and offered the chance to repurchase the same property they had already been contracted to buy, at a price $150,000 to $200,000 higher than what they had originally agreed to.
What the Law Changed (and What It Didn't)
In response to those situations, Queensland introduced new legislation that now prevents a developer from terminating a land contract on a sunset clause without the buyer's consent. This was meaningful protection for buyers in the land market and addressed a genuine injustice many had experienced.
However, the same protections do not yet extend to unit or apartment contracts. Buyers purchasing off-the-plan units are still in a more vulnerable position when it comes to sunset clause terminations, and this is something that anyone buying off the plan in a high-rise or multi-lot development should be aware of before they sign.
For buyers, the practical advice from our team is this: you cannot set a hard deadline for when you will be ready to move. Rain delays, council delays, material shortages, labour cost blowouts, and events like COVID that nobody saw coming can all push completion dates out. Build flexibility into your plans and make sure your contract is reviewed before you sign, so you understand exactly what the sunset provisions say.
What Sellers Can Legitimately Do
If you are a seller who genuinely needs to exit a contract, the starting point is always a conversation with a property lawyer. While the options are limited, they are not always zero.
Some situations where a seller may have a genuine path out include:
Mutual agreement. If both parties agree to rescind the contract, a deed of rescission can be prepared and signed by both sides. This is the cleanest outcome, but it requires the buyer's cooperation. The seller cannot force it.
Buyer default. If the buyer misses a condition date without properly satisfying or extending it, the seller may have grounds to terminate. However, the process must be handled precisely and within the timeframes set out in the contract. Acting too early or too late can render the termination invalid.
Material misrepresentation or breach. In rare circumstances, if there has been a fundamental breach or misrepresentation by the buyer, there may be grounds to terminate. These situations are complex and require proper legal advice.
What sellers should never do is assume they can simply walk away, refuse to settle, or stall the process without consequence. A buyer who is ready, willing and able to settle can issue a notice to complete, and if the seller fails to settle by the required date, the seller can be sued for damages, including the difference between the contract price and any lower resale price. In a rising market, those damages could be substantial in the other direction too.
The Lesson for Sellers Before They Sign
The most powerful protection any seller has is the work done before the contract is signed, not after.
This means making sure the contract accurately reflects what you intend to sell, understanding what conditions are in place and what your obligations are under each of them, getting advice on the settlement timeframe and whether it is realistic, and understanding your disclosure obligations under Queensland's new seller disclosure laws, which came into effect on 1 August 2024.
Under the new seller disclosure regime, sellers must provide a completed Form 2 disclosure statement to the buyer before the contract is signed. Failing to do this correctly, or at all, can give the buyer the right to terminate up to the settlement date. It is another reason why having a property lawyer involved from the very beginning of the sale process is not a luxury; it is protection.
Get the Right Advice Before You Commit
Whether you are a developer with an off-the-plan project, an investor looking to sell in the current market, or a homeowner wondering what happens if your circumstances change after signing, the time to ask your questions is before you sign the contract, not after.
At QC Law, our property law team on the Gold Coast works with both buyers and sellers across Queensland and interstate. We offer fixed professional fees and free contract reviews, so there is no reason to navigate these decisions without proper legal guidance.
If you have questions about a contract you are already in, or want advice before listing your property for sale, contact our team today.
Contact QC Law: epost@qclaw.com.au | 07 5657 1928
