REIQ restores buyer confidence with a major change to the QLD Houses and Land Contract

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REIQ restores buyer confidence with a major change to the QLD Houses and Land Contract

REIQ has made major changes to a controversial clause that has seen countless property transactions fall through at the 11th hour. 

Queensland’s contractual requirements have come under fire in recent years, with many property buyers pursuing legal action after they’ve lost their 10% home deposit due to delays with settlement.

 

These delays range anywhere from 13 minutes to a couple of days, as banks are struggling to keep up with the sheer volume of property transactions and shortages caused by COVID-19. 

 

One prime example of this is Mr Trau and Ms Goyder, a Brisbane couple who lost a deposit of $75,000 after a manual error at their bank resulted in a 24hr delay with settlement. 

 

Mark Trau, 30, and Maddie Goyder, 27.

 

Fortunately, though, the REIQ we’re quick to jump in and introduce changes that came into effect on the 20th of January 2022. These changes have allowed for 5 days of additional time on standard property contracts should either party not be ready at the time of settlement. 

 

And whilst 5 days can’t compare to other states that offer a grace period of up to 2 weeks, most aspiring homeowners in Queensland have expressed a boost in confidence. “We will feel so much better about buying our next house, we’d always have this in the back of our mind of happening again,” says Mr Trau.

So how does it work?

 

At Your Address Real Estate, we recommend speaking to a solicitor prior to entering an agreement. But to put these changes in simple terms, if a buyer or seller can’t meet the settlement deadline, then they must apply for an extension in writing before 4pm on the day of settlement. 

 

The parties can issue more than one extension notice, but the settlement date on the notice cannot be later than 5 business days after the original settlement date. 


According to REIQ Chief Executive, Ms Mercorella extension notices are “...a contractual right, you can’t say no [to the extensions request]”. 

 

To find out more about buying or selling a property in Queensland, get in touch with our team today.