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Settlement issues prompt changes to REIQ contracts

Following recent media reports of buyers losing their home deposits, Queensland Law Society and the Real Estate Institute of Queensland have announced changes to the standard sale of land contracts.

QLS President Elizabeth Shearer said that the Society was pleased to work with the REIQ on a contractual approach which balanced the needs of both sellers and buyers in the settlement process.

Ms Shearer said that QLS and REIQ had listened to their respective members about house purchase contracts falling over due to financier delays.

The new approach will mean that both the buyer and the seller can obtain a short extension to settlement if either party is unable to settle due to the inaction or delay of a financier, or for any other reason.

QLS hopes that these changes will mitigate the challenges experienced by buyers and sellers, and their legal advisers, with financial institution delays in the settlement process for purchasing a property.

The REIQ and QLS have a longstanding arrangement of both organisations jointly endorsing standard sale of land contracts to be used by real estate agents and legal practitioners across Queensland.

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The contracts set out standard terms and conditions, familiar to members of both organisations, for the sale and purchase of residential land and community titles properties in Queensland.

The new contracts will be released for use by their respective memberships on 20 January 2022. More details are available in a QLS Proctor article from 17 December.

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