Update on REIQ Residential Contract Changes from 1 December

By 1 December 2014News, Property
REIQ Residential Contract Changes

The Queensland Law Society (QLS) has summarised the changes made to the new REIQ residential property contract (10th Edition). The QLS advises:

The QLS advises:

“The new REIQ/QLS Contracts for Houses and Residential Land (10th Edition) and for Residential Lots in a CTS (6th Edition) are now available….

The new versions of the Contracts comply with the new requirements of the Property Occupations Act 2014 which will commence on 1 December 2014 repealing the Property Agents and Motor Dealers Act 2000.

As from 1 December 2014, there is no longer a requirement to attach a warning statement (Form 30C and BCCM Form 14) to the front of relevant contracts formed on or after 1 December 2014. Instead, a prescribed statement must be written immediately above the Buyer’s signature (see s.165(2) Property Occupations Act 2014). The new versions of the Contract include this prescribed statement.

The new versions of the Contracts include a number of changes:

  • The Property Occupations Act 2014 prescribed statement above the Buyer’s signing panel;
  • The definition of Business Days to exclude the period of 27 – 31 December inclusive;
  • The giving of Notices by email (with a warning as to when that Notice is “given” under the Electronic Transactions (Queensland) Act);

A provision that a buyer can request the giving of keys at the settlement upon giving 2 business days notice.”

Time of receipts.24 Electronic Transactions (Qld) Act 2001:

  1. Unless otherwise agreed between the originator and the addressee of an electronic communication—
    • the time of receipt of the electronic communication is the time the electronic communication becomes capable of being retrieved by the addressee at an electronic address designated by the addressee; or
    • the time of receipt of the electronic communication at another electronic address of the addressee is the time when both—
      • the electronic communication has become capable of being retrieved by the addressee at that address; and
      • the addressee has become aware that the electronic communication has been sent to that address.
  2. For subsection (1), unless otherwise agreed between the originator and the addressee of the electronic communication, it is to be assumed that the electronic communication is capable of being retrieved by the addressee when it reaches the addressee’s electronic address.
  3. Subsection (1) applies even though the place the information system supporting an electronic address is located may be different from the place the electronic communication is taken to have been received under section 25.

***end of REIQ changes

The wording that must appear above the place for the Buyer’s signature:

The Property Occupations Act 2014 (“POA”) s165 states that where a seller is providing a Contract to a buyer for signing, it must contain the following conspicuously written words or words to like effect:

“The contract may be subject to a 5 business day statutory cooling-off period. A termination penalty of 0.25% of the purchase price applies if the buyer terminates the contract during the statutory cooling-off period. It is recommended the buyer obtain an independent property valuation and independent legal advice about the contract and his or her cooling-off rights, before signing”

These words must be written in the Contract:

  • once;
  • immediately above where the buyer signs; and
  • on the same page the buyer signs.

This does not apply where the Seller is providing a counteroffer to a Contract prepared by the Buyer unless the property or the party details change. If the Seller amends any details other than a party to the Contract or the property details and gives it to the Buyer as a counteroffer, the above wording does not need to be included.

There is nothing in s165 of the POA that states what font size or type the wording must be – only that it must be “conspicuously written”. This is not defined in the POA Act.

Please contact us if you would like additional information or help with the new REIQ 10th edition contract.

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