Twenty property buyers are taking on a developer in a case that’s set to test the use of sunset clauses, after paying deposits five years ago only to have their contracts terminated while the homes are almost ready.

The buyers had signed contracts for townhouses at the Urbana Residences in Coomera on the Gold Coast, Queensland, in 2021, with the development expected to be completed within a year.

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Buyer Samuel Amey secured a three-bedroom townhouse worth $649,000 at Urbana Residences in December 2021 with a 10 per cent deposit of $58,000. “We entered into the contract in good faith, thinking that the developer would complete the project on time,” Amey told 7NEWS.

Buyers Masoumeh Mohsen and Samuel Amey say they were left without the homes they signed contracts for five years ago. Credit: 7NEWS

Townhouses at the Urbana Residences development, where buyers say their contracts were terminated as the homes neared completion. Credit: 7NEWS

He said the townhouse was meant to be completed within 12 months. But five years later, the homes are still not theirs.

Last year, developer Cadmium Land allegedly terminated the contracts, citing the sunset clause.

In Queensland, the sunset clauses allow either a developer or buyer to terminate an off-the-plan contract if a project is not completed within an agreed timeframe.

While designed to protect both parties against unforeseen delays, including weather and construction issues, critics have raised concerns it can leave buyers vulnerable to losing contracts after lengthy delays, particularly when property values have risen.

Construction on the precinct continued, however, and the homes are now almost ready to move into.

Some properties worth about $500,000 when contracts were signed have since almost doubled in value, according to the buyers.

Cadmium Land terminated the buyers’ contracts last year, citing the development’s sunset clause. Credit: 7NEWS

The Urbana Residences townhouses at Coomera are now nearing completion. Credit: 7NEWS

Some buyers only received their deposits back last week. But after five years of waiting, they say they wanted homes, not refunds.

“That’s why we went and just bought a four-bedroom house — to be giving our children a room each,” mother Masoumeh Mohsen said.

The group of 20 buyers is now preparing to take the matter to Queensland’s Supreme Court.

Duke Myrtza of Australian Law Partners represents the buyers preparing to take their fight to Queensland’s Supreme Court. Credit: 7NEWS

Their legal representative alleges Cadmium Land stands to benefit from the dramatic rise in property values.

“The increase in value has been used by the developer for the developers own purposes,” lawyer Duke Myrtza of Australian Law Partners said.

The dispute comes as South Australia vows to tighten sunset clause laws after developer Wel.Co cancelled contracts for dozens of buyers at its Springwood estate in Gawler East.

Cadmium Land did not respond to 7NEWS’ requests for comment.