Settlement Timing Changes
Under current REIQ contracts, if a buyer is unable to settle by 4pm on the settlement date a seller is entitled to terminate the contract, take the buyer’s deposit and sue for damages. We are sure you have all heard about the plight of the couple buying in Jindalee last year. Buyers are also entitled to terminate a contract and sue for damages if a seller is unable to settle on time.
From 20 January 2022, these entitlements will be adjusted.
New editions of the Contract for Houses and Residential Land and Residential Lots in a Community Title Scheme will be released from 20 January 2022. Under the new editions both a buyer and seller can now obtain a short extension (5 business days) to the settlement date if either party is unable to settle due to the inaction or delay of a financier, or for any other reason.
Under this new clause, a party is allowed to extend settlement by giving notice to the other party without any restrictions and without any requirement to produce supporting evidence detailing the reasons for the extension.
Are you buying or selling and would like to know more? Give Nick a call to discuss on (07) 3310 8716. Nick has over 15 years of experience in residential property law and will be able to assist and provide you with updated information before you sign that contract.
