Following changes to residential contracts earlier in the year, the REIQ have recently released a new edition REIQ Commercial Land and Buildings Contract.
The significant changes have been implemented to make the new Commercial Land and Buildings Contract consistent with the other recently amended REIQ Contracts.
A summary of the changes is as follows:
Settlement extension
The new terms give the ability of either the Seller or the Buyer to obtain an extension of up to 5 Business Days to settlement where a party is unable to settle for any reason. The reason for extending does not need to be disclosed to any other party.
While this is a welcome change for people who are burdened by the inability of their lender to settle on time through no fault of their own, in practice, there will likely be confronting scenarios for those with loaded up moving trucks, trying to move from one place to the next on the day they assumed would be the settlement date. All clients should be informed that the settlement date is now fluid, and can be changed up until the very last minute on the day.
Payment of deposit by EFT
Buyer’s paying their deposit by electronic transfer are now afforded a grace period to allow time for the funds to reach the Deposit Holder’s Trust Account. They are only afforded this if they make the transfer on or before the due date for the Deposit under the Contract and provide evidence of the transfer to the Deposit Holder. If the Buyer does not provide the Deposit Holder with evidence of the transfer, the Seller may still have the right to cancel if it has not been received by the due date.
Disclosure of work
The Seller must disclose any pending or existing work to be done on a property, whether or not a formal notice has been issued by the Council as well as any service infrastructure on a property, even if it is not protected by a registered easement, Building Management Statement.
Contract date
The definition of Contract Date has been amended to accommodate signing of contracts electronically. If the Contract Date has not been inserted, then the date is set as the date on which the last party signed.
Our Property Team is ready to assist if you have any questions about the changes to the REIQ contracts. Please contact us by telephoning our office on (07) 3220 2929 or emailing us at contact@plastiraslawyers.com.
About Maddie Cafarella
Maddie Cafarella is a Solicitor with the Property team at Plastiras Lawyers. Maddie helps individuals, SMEs and property investors with leasing, conveyancing, and off-the-plan contract reviews.