ByLawyers News and Updates

Sale of land – QLD

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The Real Estate Institute of Queensland and Queensland Law Society have released updated versions of their standard contracts for the sale of land.

The updated sale of land contracts are:

  • Contract for Houses and Residential Land (18th edition),
  • Contract for Residential Lots in a Community Titles Scheme (14th edition),
  • Contract for Commercial Land and Buildings (10th edition), and
  • Contract for Commercial Lots in a Community Titles Scheme (9th edition).

The sale of land contracts are now fully aligned with the Queensland electronic conveyancing mandate which came into effect on 20 February 2023 under the Land Title Regulation 2022. It requires all property transactions in Queensland to be conducted electronically.

To comply with the new mandate, the updated contracts feature significant changes to clause 11, the electronic settlements clause. This is now more detailed and comprehensive, ensuring all parties involved in a property transaction are aware of their obligations when it comes to electronic settlements.

Specifically:

  • The requirement for electronic settlements is compulsory under the Land Title Regulation 2022, which defines transfers as a necessary instrument, with exemptions. The first exemption is for transfers dated before 20 February 2023, but does not extend to the contract itself. The second exemption applies where one of the parties involved in the required instrument is neither a subscriber to an Electronic Lodgment Network nor represented by a legal practitioner.
  • Clause 11 outlines the process for nominating an Electronic Lodgment Network system by the seller.
  • The option for parties to switch from electronic settlement to a manual paper settlement has been removed, and unless an exemption applies the parties are obliged to settle electronically.
  • The definition of Qualifying Conveyancing Transaction that was included in previous versions of the contract has been omitted.
  • Clause 10.4(9) in the Contract for Houses and Residential Land (18th edition) has been added to clarify that a message sent using an Electronic Lodgment Network in an electronic conveyancing environment does not constitute a notice for the purposes of the contract. The sole exception being the nomination of an Electronic Lodgment Network by accepting or issuing an invitation through an Electronic Lodgment Network system: clause 11.2(2) in the Contract for Houses and Residential Land (18th edition).
  • Certain definitions relating to electronic settlement have been relocated from clause 11 to the definitions clause, being clause 1.

The By Lawyers publications Purchase of Real Property (QLD), Sale of Real Property (QLD), and 1001 Conveyancing Answers (QLD) have been updated accordingly.

By Lawyers Contract of Sale of Land – Victoria

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A new form of contract, co-authored by Russell Cocks, providing a vendor’s statement and contract in one document.

The contract is specifically designed for residential conveyancing transactions and seeks to smooth some of the traditional road blocks that arise in these transactions.

The By Lawyers Contract of Sale of Land is located in the Contract folder in the Sale of Real Property Guide.

Seven reasons to use the By Lawyers contract

  1. The Contract and Vendor’s Statement are combined into ONE document, with the Vendor’s Statement, logically, coming FIRST. The Vendor’s Statement is formatted in such a way as to deal with the obligatory fields first and then group the optional fields in way that makes removal of those fields simple if they are not required.
  2. Particulars of Sale in the Contract includes a “sunset date” for off the plan approval. No more searching through mountains of Special Conditions.
  3. Non-derogation warranty. General Conditions can be amended by Special Conditions BUT not such as to reduce the rights created by the General Conditions. No more contracts that say one thing on page 1 and reverse that on page 15. This Contract is fair to both parties; if someone wants to create an unfair contract they cannot hide it within this contract.
  4. General Condition 12 – deposit release. Establishes a clear protocol for release by requiring timely objection to title.
  5. General Condition 14 – loan condition. Extends time for approval to 21 days and allows for automatic extension, subject to vendor’s ability to end the extension by notice.
  6. General Condition 25 – losses. Removes disputes relating to default losses from the settlement process and allows the parties to resolve these issues after settlement.
  7. General Conditions 27 & 28 – default and rescission notices. Divides the process into two steps with specified legal cost in respect of notices.

There are also other improvements, such as simple off the plan and electronic conveyancing conditions, a requirement that a vendor produce a copy lease at settlement and a clause passing ownership of abandoned goods to the purchaser. This Contract continues the quest commenced by the 2008 Contract (remember Requisitions?) to simplify conveyancing by ironing out the speedhumps.

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