By John Warlow
On 20 January 2022 the REIQ released new versions of its contracts for the sale of houses and apartments in Queensland. The new contracts contain a number of amendments. But most importantly they contain a new Clause 6.2 which gives either party the ability to unilaterally extend the Settlement Date for up to 5 business days.
This is a significant change as it will give both buyers and sellers the ability to extend the date for settlement for 5 business days if their bank is not ready to complete the contract on the due date. Previously the Settlement Date could only be extended with the agreement of both the buyer and seller.
There are, however, a couple of key points to note.
- The Settlement Date can only be extended by a maximum of 5 business days from the original Settlement Date. An extension beyond 5 business days is only be possible if both the buyer and seller agree.
- Written notice must be given extending the date for settlement before 4pm on the original Settlement Date. This right to an extension cannot be exercised after the Settlement Date.
- Only the Settlement Date can be extended under the new clause 6.2. The clause cannot be used to unilaterally extend the finance date or the building inspection date. Those dates can only be extended with the agreement of both parties.
This new clause is only in the 17th edition of the REIQ Contract for Houses and Land, and the new 13th edition of the REIQ Contract for Residential Lots in a Community Title Scheme. Consequently, it is important that buyers and sellers ask the sales agent to ensure that the latest version of the REIQ Contract is used. Earlier versions of the Contract will not contain the new clause – in which case the date for settlement can only be extended with the agreement of both parties.
For more information contact either John Warlow (07 3002 7419 or johnw@mdl.com.au ) or Kylie Newman (07 3370 5131 or kylien@mdl.com.au ) at McCarthy Durie Lawyers. Both John and Kylie have a depth of experience in conveyancing and property law matters, and are equipped to answer any questions which you or your clients may have.