New REIQ Contracts Released

Mark Fowler TN Tien
Mark Fowler & Tien Nguyen (28 November 2014)

The Real Estate Institute of Queensland Limited and the Queensland Law Society Incorporated have approved the following contracts:

Tenth Edition of the Contract for Houses and Residential Land; and
Sixth Edition of the Contract for Residential Lots in a Community Titles Scheme.

These new editions of the REIQ/QLS contracts were released on 26 November 2014 and are to be used for relevant contracts “formed” on or after 1 December 2014, in accordance with the Property Occupations Act 2014 (Qld) (POA) which will repeal the Property Agents and Motor Dealers Act 2000 (Qld) (PAMDA).

Arguably the most notable change is that, instead of attaching a warning statement at the front of relevant contracts, the new editions include a statement prescribed by POA immediately above the Buyer’s signature. Some important amendments contained in the Tenth Edition of the Contract for Houses and Residential Land also provide:

Explanatory notes in relation to tenancies and title encumbrances to clarify how certain particulars are to be completed;
A clarification that title encumbrances (for example, easements on title and statutory easements) must be disclosed and it is not sufficient to state “refer to title”, “search will reveal”, or similar;
The addition of clause to the effect that if the purchase price includes GST, any claimable input tax credits are to be deducted from the payment;
That 27 – 31 December is excluded in the definition of Business Days;
That notices may be given by email subject to the requirements of the Electronic Transactions (Qld) Act 2001 (Qld);
That buyers can request sellers  provide keys at the settlement upon giving 2 clear business days notice before the Settlement Date; and
That Sellers dates of birth are to be provided in the contract (to enable buyers to complete a property register Personal Property Securities Register (PPSR) search.

Please contact us for more information about other changes included in the new editions of the REIQ/QLS contracts and the requirements of POA.

DISCLAIMER: This update contains general information only. The information is not all inclusive and should not be considered to be legal advice. You should always obtain legal advice for your specific circumstances before relying on general information.