Recently a new standard form of contract in Queensland was released with some big changes. Below is a brief overview of the major changes.
Previously you were only able to extend the settlement date by agreement between the parties or if there was a delay event. The new contract now allows for either party to extend the settlement date for up to 5 Business Days past the due settlement date penalty free. It is important to keep this in mind when you are organising removalists, trades people or advertising for tenants.
On 1 January 2022, the next stage of the smoke alarm update was implemented. Any property being sold must now have smoke alarms that comply with the Fire and Emergency Services Act 1990 and Building Fire Safety Regulation 2008 installed in the property before settlement date.
If the property does not have compliant smoke alarms the buyer will be entitled to an adjustment on settlement equal to 0.15% of the purchase price to do this following settlement.
If you are unsure if the smoke alarms comply, we recommend you arrange for a smoke alarm professional to check them.
As most buyers now make payment of their deposit via bank transfer, the contract has been updated to include a grace period to allow the funds to be received. Previously the deposit was only considered as paid when it was cleared funds in the deposit holders trust account. There is now a 2 day grace period as long as the buyer can evidence that they transferred the funds prior to the end of the due date.
The buyer is no longer required to do an inspection to ensure the property has a current pool compliance certificate. If the property does not have a current pool compliance certificate the seller must provide either a notice of no pool safety certificate or an exemption certificate before the contract is signed.
If the seller does not provide either a notice of no pool safety certificate or an exemption certificate before the contract is signed, they are required to provide a current pool compliance certificate on or before settlement. The certificate must be current at the time of settlement.
There are other updates to the contract terms including changes to the seller’s warranties, property notices and services passing through the land. Please contact Icon Legal for further details.