NEW RIGHT TO EXTEND SETTLEMENT

REIQ RESIDENTIAL CONTRACT CLAUSE 6.2 - NEW RIGHT TO EXTEND SETTLEMENT

The onset of COVID-19, combined with a sharp increase in property transactions, has put strain on the resources of banking institutes around Australia. This strain has resulted in delays at settlement where banks have not provided finance in time, and some Buyers have missed out on completing the purchase of their new home. However, if you are buying your new home and are experiencing delays to your settlement date, then we have great news for you. As of 20 January 2022, the Real Estate Institute of Queensland (REIQ) added a new clause to their standard form real estate contract that gives both the Buyer and the Seller the opportunity to increase the time for settlement by up to 5 business days.

If you need extra time to complete the settlement of your new residential home, you should contact your lawyer or conveyancer immediately. The settlement date can be extended at any time up to 4pm on the day of settlement. Your lawyer or conveyancer will provide written notice to the other party nominating a new settlement date. More than one extension can be requested, so long as the new settlement date is not more than 5 business days after the original settlement date.

Though there is room for either party to extend the settlement date by up to 5 business days, time remains of the essence in the new standard form residential contracts, and it is expected that parties remain mindful and respectful of the terms and settle when they agree to. It is important to note that there are circumstances where requesting an extension of settlement may cause inconvenience for Buyers and Sellers who rely on the settlement date where they are buying or selling another property at the same time. 

The legal professionals and conveyancers at Wallace Law Group are equipped with years of combined experience to provide you with the best advice on your real estate matter. If you need to extend your settlement date for any reason or have any other concerns in the sale or purchase of your house, call Wallace Law Group today on 1300 011 123.

Please note that this article is written as an informative piece and that you must not take the contents of this article as legal advice. Wallace Law Group accepts no liability from your reliance on this article.