Long Stop Date – What is it & Who Does it Benefit?

May 4, 2023

What is a Long Stop Date?

A long stop date (sometimes referred to as a sunset clause) is the date that the developer has set for the property to be completed, whether it is a house or a block of flats. Therefore, it is a clause in the contract agreement that the developer is obliged to fulfil.

If the long stop date clause is not fulfilled by the developer, if exchanged, the buyer has the right to rescind the contract and are entitled to receive their deposit back, something you cannot do if you have already exchanged contracts. So, most of the time this is an option that the buyer has and not always an automatic termination of the contract, because some buyers may not mind.

Who Does This Clause Benefit?

A long stop date can benefit the buyer and the seller. It can benefit the buyer, because if the completion of the development is taking too long or is getting delayed this may frustrate the buyer, so this clause will give them the right to pull out of the agreement and receive back their deposit. The buyer may also want to extend the long stop date.

It can benefit the seller, because this gives them a chance to set a realistic time scale to build the property. However, if the developer sets the date to far back this can put off potential buyers, as it will raise the question, why is the completion going to take so long? Therefore, it is important that the developer takes time to choose what this date is going to be, because it can affect the development as a whole and will affect sales.

This means that, this clause mainly benefits the buyer, but the developer must think about what date will be included in the clause, because it can affect the development.

What if my Contract Doesn’t Include a Long Stop Date?

If you have exchanged contracts and it does not include a long stop date, it will mean that the buyer will not have a time frame for when the property will be completed, and they will not be able to rescind the contract. However, if the contract has not yet been exchanged, the buyer can ask the seller to include a long stop date, as they are quite common.

If you’re a buyer or a developer, make sure to include a long stop date clause in your property contract to protect your interests. To learn more about how a long stop date can benefit you, contact us at 0121 705 7571 or enquiries@wallacerobinson.co.uk.

Oliver Wheldon
Paralegal – Development Department

This article is for general information purposes only. It does not constitute technical, financial, legal advice or any other type of professional advice and is no substitute for specific advice based on your individual circumstances. We do not accept responsibility or liability for any actions taken based on the information in this article. For more information, please click here.