What does sunset date mean

Usually, that is if they were unable to complete the project by the Sunset Date. A Sunset Date is always at least 24 months, but in many cases it can be up to 48 months after the anticipated date of completion and settlement for the property. This is not a reflection on how far completion and settlement truly is, but a condition that is usually set by the bank financing the construction loan to protect themselves should there be any unforeseen delays in the construction phase.

This is standard practice with all new construction and the developer usually does not have any lee way as they risk losing funding approval for construction by the partnered bank lender. Sign up to the iBuyNew newsletter to receive more article and property news straight to your inbox. Intended to address relatively short-term security concerns following the events of Sept. Often, a law with a sunset provision can get votes because lawmakers who might otherwise oppose the permanent implementation of the law may be okay with a temporary implementation due to special circumstances.

Your Privacy Rights. To change or withdraw your consent choices for Investopedia. At any time, you can update your settings through the "EU Privacy" link at the bottom of any page. These choices will be signaled globally to our partners and will not affect browsing data. We and our partners process data to: Actively scan device characteristics for identification.

I Accept Show Purposes. Your Money. Personal Finance. Your Practice. Popular Courses. What Is a Sunset Provision? Key Takeaways A sunset provision is a provision in a regulation stating that sections of the law, or the whole law, expire on a set date. Sunset provisions are automatic and do not require further authorization. The U. Congress can override sunset provisions by voting to extend the law.

When to use a sunset clause? The inclusion of a sunset clause in a new build contract provided that it is drafted to allow only the purchaser and not the vendor to cancel can be particularly important for a purchaser for several reasons including: If an unexpected event occurs which significantly slows down or halts the development altogether, the purchaser has an ability to cancel the contract and look to find something else rather than waiting around for what could potentially be a significant period of time.

Protecting the purchaser against the vendor not meeting its obligations by the sunset date, then cancelling the contract and selling the property to another buyer for a higher price. For more information: If you are considering entering into a new build contract, come and see our property experts at Morrison Kent. About the author Tessa Doherty Tessa is a property law expert who works with a range of different clients from first homes buyers to large businesses and corporations. Previous Next. Request a Consultation.

Notice: JavaScript is required for this content. Request a consultation.