In January 2022, the Real Estate Institute of Queensland (REIQ) contracts used, by most Real Estate Agents in Queensland, introduced a standard condition 6.2. This condition allows the Buyer or Seller to unilaterally extend the settlement date by giving notice to the other party before 4pm on the original settlement date, nominating a new date for settlement no later than 5 business days after the original settlement date.
The impact of condition can be significant. Positively, it provides flexibility and assistance for a party that is experiencing an unexpected delay, usually due to a bank not being ready for settlement in time and reduces the risk of termination of the contract due to the default of a third party. However, it also makes the settlement date a little uncertain. A party who is ready to settle on the settlement date, may now have to accommodate an extension unless the contract includes a special condition that overrules standard condition 6.2.
Sellers and Buyers now must plan for the possibility of a unilateral 5 business day extension of the settlement date. If it is critical that you settle on the original settlement date, you should seek legal advice before you sign the contract to ensure a special condition is included to negate the effect of standard condition 6.2.
Our friendly Property Officers at McNamara Law are here to help should you need advice in this regard. Please contact either our Ipswich or Springfield offices for assistance.
Unit 10
88 Limestone St
Ipswich 4305
Queensland
Ph: 07 3816 9555
GE Building,
Level 1, 6 Yoga Way
Springfield Central 4300
Queensland
Ph: 07 3470 3600
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