Right to Extend Settlement Date under 17th Edition REIQ Contract
The seventeenth edition of the Contract for Houses and Residential Land and Residential lots in Community Title Scheme was released on 20 January 2022. The latest version contained several changes, significantly the right for either party to extend settlement for up to five business days after the scheduled Settlement Date.
As the Buyer or Seller, you have a right to request an extension any time up until 4 pm on the scheduled Settlement Date under clause 6.2 of the latest edition, without penalty.
This is a significant change to conveyancing practice and helps to protect either party unfairly affected by minor delays outside of their control.
The Queensland Law Society and REIQ have noted that it will alleviate the difficulties faced by Buyers who risk losing their deposit on the scheduled Settlement Date due to delays from their financer.
The extension request must comply with the provisions of clause 6.2 however the party extending does not need to disclose the reason for the extension nor provide any evidence to support its reasoning.
Although this update has been introduced to protect parties from unfair delays, we recommend that you are mindful of its possible implications when engaging third parties to assist with the settlement such as removalists, or electrical providers.
Importantly, these changes are only applicable to the REIQ residential contracts, not the ADL Contract for Sale of House and Land. Before executing either the REIQ or ADL Contract we recommend that you seek legal advice to protect your interests.
Our team are more than happy to assist with any queries that you may have, should you intend to execute a residential contract of sale.
Contact us for a complimentary review on 07 3236 2852.
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