Almost every private treaty house sale in Queensland uses the REIQ Contract for Houses and Residential Land. It is a standard form drafted by the Real Estate Institute of Queensland and the Queensland Law Society. Understanding the main sections will save you a lot of stress at contract time.
What is the REIQ contract?
It is a two-part document. The front is the reference schedule, which contains all the deal-specific details (parties, price, deposit, dates, conditions). The back is the standard terms, which apply automatically unless changed by special conditions.
Purchase price and deposit
The reference schedule sets the purchase price and the deposit amount. The deposit is usually 5 or 10 per cent, paid to the agent's or solicitor's trust account. Under Queensland law the deposit cap for a residential contract is 10 per cent unless the parties agree otherwise in writing.
Finance clause
If the contract is subject to finance, the schedule sets the lender, the amount, and the date by which finance must be approved. If finance is not approved by that date and the buyer acts within the required time, the buyer can terminate and get their deposit back. A cash contract has this crossed out.
Building and pest inspection
Standard for most private treaty sales. The buyer has a set period (commonly 7 to 14 days) to arrange a building and pest inspection. If the report is not satisfactory acting reasonably, the buyer can terminate. Auction contracts do not include this clause.
Settlement date
The date on which the balance of purchase price is paid and title transfers. Typically 30 or 60 days from contract. Both parties are bound to be ready on the day, subject to standard time-of-the-essence provisions.
Cooling-off period
A five business day statutory cooling-off period applies to most private treaty contracts. If the buyer terminates within the cooling-off period they forfeit 0.25 per cent of the purchase price. It does not apply to auction sales or to some contracts signed within two business days of an auction.
Special conditions
Anything not covered by the standard terms goes here (subject to sale of another property, longer inspection period, chattels included, tenancy conditions, and so on). Special conditions override the standard terms where they conflict, so they need to be drafted carefully by a solicitor.
Deposit release, PEXA, and adjustments
The standard terms cover deposit release rules, electronic settlement through PEXA, and the way rates and other outgoings are adjusted at settlement. Your solicitor deals with all of this on your behalf.
What buyers and sellers should do
Never sign a contract you do not understand. Have your solicitor review it before you sign, not after. Ask about any special conditions and check the dates line up with your finance approval and inspection availability.
Important note
This article is general information only, not legal advice. Queensland property law changes and every situation is different. Before you act, speak with a qualified solicitor or licensed conveyancer, and verify current requirements with the relevant Queensland Government source (Queensland Government, Queensland Law Society, Office of Fair Trading, or the QBCC where applicable).
Where to from here
Selling and want it handled properly? Book a free appraisal and I will walk you through your obligations end to end. If you just want a fast market read on your home first, Jai can give you an instant estimate.
Frequently asked questions
Thinking of selling in Rochedale?
Get a free appraisal from Junaid Ally. Call 0410 218 499 or visit junaidally.com/appraisal.
