In line with recent REIQ contracts amendments and regulatory requirements, new commentary and precedents have been added to the By Lawyers Conveyancing (QLD) publication.

The new content in both Sale and Purchase guides relates to:

Unilateral right to extend the settlement date

From 20 January 2022 the new REIQ Houses and Land Contract 17th edition and Residential Community Title Contract 13th edition  provide in a new clause 6.2 the ability for either buyer or seller to extend the settlement date for up to five business days if they are unable to settle.

The new clause allows a party to extend settlement by giving an extension notice to the other party, without any requirement to produce supporting evidence detailing the reasons for the extension. The notice must be given in writing prior to 4pm on the scheduled settlement date, must nominate a new settlement date and state that time is of the essence.

More than one extension notice may be given but the settlement date nominated in a notice cannot be later than 5 business days after the scheduled settlement date.

A new precedent Extension Notice can be found on both the Sale and Purchase matter plans within folder F.

Smoke alarms

From 1 January 2022, dwellings or residential units offered for sale must have smoke alarms installed in accordance with the Fire and Emergency Services Act 1990 and Building Fire Safety Regulation 2008. Clause 7.8 of the new editions of the REIQ contracts imposes an obligation on the seller to install compliant smoke alarms in any dwelling on the land or lot, prior to settlement. If not met, the buyer is entitled to an adjustment on settlement of 0.15% of the purchase price.

Pool compliance certificates

Clause 5.3(1)(e) of the new editions of the REIQ contracts require a seller to provide a pool compliance certificate for a non-shared pool on the land at settlement. The only exception to this obligation is if a Notice of No pool Safety Certificate is given to the buyer prior to contract.

Failure to provide a pool compliance certificate under clause 5.3(1)(e) will mean the seller is not ready, willing, and able to settle and the buyer may terminate the contract.

Updates

Apart from new commentary and precedents in the Purchase and Sale guides, the detailed 1001 Conveyancing Answers (QLD) publication has also been updated accordingly. This is available in the reference materials folder at the top of all By Lawyers QLD conveyancing and property matter plans.