Zaki Ameer Advocates for Legislative Changes to Protect Property Buyers From Unfair Sunset Clauses

SYDNEY, August 8, 2024 (Newswire.com)
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In response to some property developers’ increasing misuse of sunset clauses, Zaki Ameer, a prominent real estate industry figure, calls for significant legislative reforms. Initially designed to safeguard both parties in off-the-plan property agreements, sunset clauses have been reportedly exploited, leading to substantial financial losses for buyers.

Zaki Ameer, the founder of DDP Property, emphasises the urgent need for regulatory intervention to prevent developers from abusing these clauses to their advantage. He points out that the current legal framework allows developers to terminate contracts unilaterally under the pretext of project delays, reselling the properties at higher prices in a booming market.

“The imbalance in power between developers and buyers is stark,” Ameer notes. “Many buyers enter these contracts with the expectation of securing a home at an agreed price, only to find themselves back at square one when developers exploit sunset clauses to maximise their profits.”

Ameer suggests that legislative reforms should include mandatory buyer compensation when a sunset clause is invoked without cause. He believes this would deter developers from manipulating these clauses for financial gain and provide a fairer system for property buyers.

He also advocates for increased transparency in the off-the-plan sales process. Buyers should be fully informed about the potential risks and implications of sunset clauses before entering into contracts. This would involve more transparent disclosures and a standardised explanation of how these clauses can be applied.

“Ensuring buyers are well-informed and protected against unfair practices is crucial for maintaining trust in the property market,” Ameer asserts. “Legislative reforms are not just necessary; they are imperative to protect the interests of property buyers.”

Ameer’s call for action comes when the property market is experiencing significant volatility, with many buyers feeling vulnerable. His proposed changes aim to create a more balanced and equitable market environment, ensuring that unfair contractual practices do not mar the dream of homeownership.

Source: DDP Property