Brief Overview of Standard REIQ Contract

When buying or selling houses and residential land, undoubtedly you will come across a Standard REIQ Contract. The purpose of this page is to explain what the Real Estate Institute Queensland (REIQ) does and in particular, an explanation on the key terms included in a Standard REIQ Contract. The two most important and controversial items in a Standard REIQ Contract is where parties to the transaction display their full and correct legal name, and the cooling off period.

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Full and Correct Name
A requirement is that you show your full and correct name; this is the same name shown on your birth certificate or driver’s license. For example, if your name is Anthony Alexander-Smith, you can not use Tony Smith. It is very important that you include your full name and include your middle name and hyphens if it is on your birth certificate.
Cooling Off Period
A cooling off period of five (5) business days applies. In this time you can change your mind about purchasing the property and withdrawing from the property, however, you must provide proper notice. If you elect to terminate the contract under the cooling off period, there is a termination fee equal to 0.25% of the purchase price.

Buying Guide

Seller’s Guide

Reference Schedule

Fixtures: if any fixtures are to be excluded from the sale they need to be specified in the relevant section of the Reference Schedule.

Chattels: similarly, chattels which are included in the sale need to be listed.

Tenancies: if the property is sold subject to a tenancy, ensure that all relevant details are completed in the Reference Schedule. If it is left blank, the buyer will be entitled to the vacant possession on the day of settlement.

Finance: if you are buying the property subject to obtaining finance, ensure that all three components of the finance clause are completed. For the clause to be legally valid and enforceable you need to state an actual amount, the name of the financier and a date or period for obtaining finance.

Building and Pest: if the property is sold subject to a building and pest inspection, ensure that the relevant section is completed in the Reference Schedule and is carried out by a registered/licensed inspector.

Pool Safety: if there is a pool on the property, ensure that a Compliance or Exemption Certificate is provided.

Safety Switch and Smoke Alarm: ensure that this section is completed.

Neighbour Disputes: if there are any disputes with neighbours concerning dividing fences and trees, it should be stated in the relevant section of the Reference Schedule.

Special Conditions: if there are to be any conditions over and above the ‘standard’ conditions, they should be set out in this section. For example, if the contract is subject to the sale of your existing home, then such conditions would be inserted in this space.

Terms of a Contract

Clause 3 deals with finance and what you need in order to comply with it.

Clause 4 covers your rights to obtain a ‘Building and Pest Inspection Report’, and ‘Pool Safety’.

Clause 6.1 – ‘time is of the essence’. This is very important as strict time limits apply. If you do not comply by the date stated in the contract, you may be in breach of the contract and lose your rights under the contract. The consequences of breaching Clause 6.1 can include forfeiting your deposit.

Clause 8.1 concerns buyer’s risk and insurance. The property is at the buyers risk from 5:00pm on the first Business Day after the Contract Date. Buyers should ensure they take out a cover note for insurance immediately upon signing the contract.

Clause 8.2 is where a buyer and his or her authorised agent is entitled to access the property for the purposes stated in this clause.

Clause 8.3 sets out the seller’s obligation from the time the contract is signed until the settlement date.

Clause 10.3 requires that the buyer must pay all duty on the contract.

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Brief Overview of Standard REIQ Contract

Full and Correct Name

Cooling Off Period

Reference Schedule

Terms of a Contract

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