Changes to REIQ Contracts

Significant changes to the REIQ House and Land Contracts are being implemented from 20 January 2022.  The REIQ Contracts are one of the most common contracts when buying or selling a house or land in Queensland, so it is important to understand how they can impact your purchase or sale.

Whilst there a number of amendments, the significant changes include: 

1. Either party has the ability to obtain a short extension to settlement if the party is unable to settle due to the inaction or delay of a financier or for any other reason.  
2. New smoke alarms clauses will impose a contractual obligation on the Seller to install smoke alarms in compliance with the new requirements.
3. Express provision for paying a deposit by direct debit and a grace period allowed to address the impact of delays in the deposit of money to accounts when using direct debit. 
4. Amendments to the Pool Compliance Certificate obligations. A Seller will be required to hand over a Pool Compliance Certificate for a non-shared pool on the land at settlement.  
5. A new warranty has been added in that the Seller warrants they have not received communication from a competent authority that may lead to the issue of a show cause or enforcement notice or a notice to do work.
6. A clause has been added to allow a Buyer a right to terminate if infrastructure unrelated to delivery of services (gas, electricity, water, sewerage) to the Land pass through the Land and are not protected by a registered easement, BMS or statutory authority that has been disclosed to the Buyer.
7. Amendments to Clause 7.6 to changing the responsibility for notices to do work, depending on when the notice is issued (prior to or after contract), when compliance with the notice is required (before or after settlement) and whether the notice is disclosed by the Seller to the Buyer prior to Contract. 

If you have any questions regarding the conditions in your new Contract or are looking to buy or sell a property, please contact our experienced Property and Conveyancing team who can assist you.