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Clauses for QLD Contracts if you want to settle between Chrismas and New Years

Discussion in 'The Buying & Selling Process' started by RPI, 17th Nov, 2015.

  1. RPI

    RPI Property Lawyer, Town Planner Business Member

    Joined:
    19th Jun, 2015
    Posts:
    711
    Location:
    Brisbane
    Hi All

    As mentioned in another thread the Qld Contracts have changed this year (and from now on) so that the definition of Business Days excludes any day failing between 27 and 31 December. This year that means no conditions and no settlements between 25 December and 3 January.

    Lot's of my clients have settled in that period in past years, normally due to delay rather than actually picking that time. In an ideal world you might want to settle on Christmas Eve or a few days earlier, but if there is a delay to settlement for any reason (banks are crazy busy the week before Christmas and delays are very common

    Having access to the property does make sense if you are going to move in or want to do work on the property. This year in QLD it would take only 3 days annual leave to have those 10 days off.

    Here are some example special conditions for your contract should you want to settle then.

    REIQ House and Land Contract

    Special Conditions.
    1.1 Condition 1.1(2)(f)(iii) of the standard conditions is deleted.

    REIQ Unit & Townhouse
    Special Conditions.
    1.1 Condition 1.1(2)(j)(iii) of the standard conditions is deleted.


    ADL House and Land Contract

    Special Conditions.
    1.1 Condition 1 (8) is varied to read "Business Day: Any day other than a Saturday, Sunday or Public Holiday in the State of Queensland"


    ADL Unit & Townhouse
    Can't find one of these handy so you will need to replace the ? with the relevant number from the contract
    Special Conditions.
    1.1 Condition ? (?) is varied to read "Business Day: Any day other than a Saturday, Sunday or Public Holiday in the State of Queensland"

    From talking the banks and their settlement agents it appears that they are going to be able to settle on those 3 days..

    It would be wise to put in a second condition that ensures no termination rights or penalties accrue if you can't settle prior to 4 January because your bank wasn't able to.

    Example Condition
    1.2 Should Settlement not be able to occur prior to 4 January 2016, neither the Seller, nor the Buyer:
    (a) can Terminate the Contract;
    (b) impose any default interest or other penalty; or
    (c) require the other party to pay any legal, settlement or other fees resulting from Settlement not occurring in the period of 29 December to 31 December.
     
    pinkboy likes this.
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    1,159
    Location:
    Gold Coast
    Useful !


    As a borrower ..............youd want to be a bungy jumper :) settling at that time of year

    ta
    rolf