Are you looking to get into the property market as either a buyer or seller? If so, there are some new important changes you need to be aware of.
On 20 January 2022, new editions of the residential REIQ contracts were released. These have incorporated significant changes to buying property in Queensland.
So, what exactly has changed?
Time is of the essence
Arguably, the most significant change has been to the time is of the essence clause. Previously, buyers and sellers were required to perform their obligations (such as building and pest inspections) strictly by the due date. If one party failed to do so (and without evidence of a Delay Event), the other party could immediately exercise their rights against them. In other words, they could terminate the Contract at 5:01pm on a condition due date.
The new changes will now allow buyers and sellers to obtain a short extension (up to 5 days) after settlement if they’re unable to settle due to the inaction or delay of a financier.
Smoke alarms
There are now new smoke alarm compliances to be adhered to in all residencies. If you’re looking to sell your property, you must have compliant smoke alarms installed prior to settlement.
If you fail to do so, the buyer can seek an adjustment on the settlement price.
Paying a deposit by direct debit
You can now pay a deposit by direct debit.
If you choose to use this method, then you’ll be deemed to have paid the deposit on the day you instruct your bank to pay the funds. This will be considered as “paid on time”.
You must provide evidence confirming the payment was made, otherwise, the seller may terminate the Contract.
other changes
There have also been changes regarding:
- Seller Warranties;
- Property Notices;
- Pool Safety Certificates; and
- Services passing through the land without an easement.
Some of these changes can expose you to unwanted expenses and/or termination if not addressed prior to Contract.
what should you do?
If you’re looking at either buying or selling your home, it’s important you’re familiar with these new changes, so you don’t expose yourself to unnecessary risk.
McInnes Wilson Lawyers can assist you with understanding and complying with these new changes. We have a range of legal experts across multiple service fields that will be able to help with your matter.
If you require any further information or would like to get in touch to seek assistance, please fill out the enquiry form below.
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