Summary of the standard terms of the REIQ contract for houses and

residential land – 17th edition

Clause Description Explanation/comments

1. Definitions
1.1 Definitions Definitions such as (m) Encumbrances,
(n) Essential Term, (w) Outgoings,
(gg) Transfer Documents,
(ii) Withholding Law.
2. Purchase Price
2.1 GST
2.2 Deposit (1) When the Deposit must be paid by the Buyer.
(2) Default.
(3)-(4) Electronic transaction used to pay the
Deposit.
(5) Recovery of the Deposit by the Seller.
2.3 Investment of the deposit.

2.4 Entitlement to deposit and interest. (1) The party entitled to the deposit.
(2) The party entitled to interest.
(3) Termination of the contract.
2.5 Payment of balance of purchase price. (1) Bank cheques as the Seller directs.
(2) Definition of bank cheque.
(3) – (6) CGT and GST Withholding Law.
2.6 Adjustment to balance purchase price. (1) Liability for outgoings and receipt of rent.
(2) Adjustment.
(3) No separate assessment of rates.
(4) Land tax.
(5) Water.
(6) Outgoings assessed but unpaid.
(7) – (11) Rent.
(12) Cost of bank cheques.
(13) Requirement of bank cheques.
(14) Written statement.
3. Finance
3.1 Terms satisfactory to the Buyer /
reasonable steps / finance date.

3.2 Notice by the Buyer (1) Finance not obtained / termination.

(2) Finance obtained / clause waived.
3.3 Termination by the Seller / 5pm finance
date / remedy.

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 Summary of the standard terms of the REIQ contract for houses and
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3.4 Buyer’s continuing right to provide notice of

satisfaction, termination or waiver.

4. Building and pest inspection reports

4.1 Building and pest inspection. Written building report from a building inspector
and a written pest report from a pest inspector /
terms satisfactory to the Buyer / reasonable steps /
inspection date.

4.2 Notice by the Buyer. (a) Satisfactory report not obtained / terminate /
Buyer act reasonably.
(b) Satisfactory report(s) obtained / clause waived.
4.3 Buyer terminates / Seller may request
report.
4.4 Termination by the Seller / 5pm inspection
date / remedy.
4.5 Buyer’s continuing right to provide notice of
satisfaction, termination or waiver.
5. Settlement
5.1 Time and date. (1) Time – 9am to 4pm.
(2) Place if no agreement.
5.2 Transfer documents - Buyer. (1) Prepared by the Buyer’s solicitor / provided to
the Seller a reasonable time prior to settlement.
(2) Stamping if the Buyer is not represented.
5.3 Documents and keys at settlement - Seller. (1) Seller must deliver at settlement:
(a) Transfer Documents capable of immediate
registration.
(b) Instrument necessary to release any
Encumbrance.
(c) Keys – if requested at least two business days
prior to Settlement Date.
(d) Documents relevant to tenancies.

(e) Current Pool Compliance Certificate.

(2) Keys – if not delivered at Settlement.

5.4 Assignment of covenants and warranties -

Seller.
5.5 Possession of property and title to include Seller must provide vacant possession of the land
chattels - Seller. and improvements except for any tenancies.

5.6 Reservations - Seller. (1) Seller must remove Reserved Items prior to
settlement.

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 Summary of the standard terms of the REIQ contract for houses and
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(2) Seller must repair any damage done in removing

the Reserved Items.
(3) Reserved Items not removed prior to settlement.
(4) Seller indemnifies the Buyer.
5.7 Consent to transfer of State Lease.

6. Time
6.1 Time of the essence. Time is of the essence except regarding any
agreement between the parties on a time of day for
settlement.
6.2 Extension of Settlement Date. (1) Nominating a new date for settlement.
(2) Settlement Date / Extension Notice / time is of
the essence.
(3) Provision of more than one Extension Notice.
(4) Scheduled Settlement Date.
6.3 Delay event.
7. Matters affecting the property
7.1 Title. The land is sold subject to:
(1) Any reservations or conditions on the title or the
original deed of grant.
7.2 Encumbrances. Sold free of all Encumbrances other than the title
encumbrances and tenancies.
7.3 Requisitions. Buyer may not deliver any requisitions or enquiries
on title.
7.4 Seller’s warranties. (1) The Seller warrants that, except as disclosed in
this contract or in writing before the Buyer signed
the contract.
(2) The Seller warrants at the contract Date:
(a) No outstanding notice under the Building Act
1975 or the Planning Act 2016.
(b) Not received any communication from a
competent authority.
(c) No current or threatened claims etc that may
lead to a Court Order etc affecting the property.
(d)-(e) Environmental Protection Act 1994.
(3) The Seller warrants that at settlement:
(a) Registered owner of the estate in fee simple.
(c) Capable of completing the contract.
(d) No unsatisfied judgment, order or writ affecting
the property.
(4) Buyer may terminate if breach of warranty.
(5) Seller does not warrant present use is lawful.
7.5 Survey and mistake. (1) Buyer may survey the land.

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 Summary of the standard terms of the REIQ contract for houses and
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(2) Error in boundaries or area of land /

encroachment by structures onto or from the land /
Services that pass through the land which do not
service the land and are not protected by any
Encumbrance disclosed to the Buyer in the contract
/ mistake or omission in describing the property or
Seller’s title which is MATERIAL, the Buyer may
terminate by notice to the Seller prior to
settlement.
(3) If a matter is IMMATERIAL or MATERIAL but the
Buyer elects to complete the contract, the Buyer’s
only remedy is for compensation but only if claimed
by the Buyer in writing on or before settlement.
(4) Settlement not to be delayed / withhold any of
the purchase price.
7.6 Requirements of authorities. (1) Liability.
(2) If Seller is liable and work or expenditure not
completed prior to settlement.
(3) If Buyer is liable.
(4) When the Buyer must comply.
7.7 Property adversely affected. (1) If at the contract date:
(a) Present use is not lawful.
(b) Land effected by proposal to alter transport
infrastructure on the land.
(c) Access or any service to the land passes
unlawfully through other land.
(d) Any Services to the land which pass through
other land are not protected by a registered
easement, building management statement or by
statutory authority.
(e) Current notice to treat / notice of intention to
resume regarding any part of the land.
(f) Outstanding condition - development approval.
(g) World heritage.
(h) Acquisition land.
(i) Charge against the land.

The Buyer can terminate on or before settlement if

not disclosed by the Seller in the contract.
(2) If notice is not provided by the Buyer the Buyer is
taken to have accepted the property.
(3) Seller authorises the Buyer to inspect records
held by any authority.
7.8 Compliant smoke alarms. (1) Seller must install by the Settlement Date.

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(2) If this does not occur, the Buyer is entitled to an

adjustment at settlement equal to 0.15% of the
purchase price / Must be claimed in writing on or
before settlement.
7.9 Dividing fences. Seller need not contribute to the cost of building a
dividing fence.
8. Rights and obligations until settlement
8.1 Risk - Buyer. Property is at the Buyer’s risk from 5pm on the first
business day after the contract date.
8.2 Access - Buyer. After reasonable notice provided to the Seller, the
Buyer may enter the property:
(1) Once to read the meter.
(2) Inspections under Clause 4.

(3) Once to inspect the property prior to settlement.

(4) Once to value the property prior to settlement.
(5) Once to carry out an inspection for smoke alarms
installed in the property.
8.3 Seller’s obligations after contract date. (1) Use the property reasonably / not significantly
alter / result in later expense for the Buyer.
(2) Promptly provide the Buyer any notice,
proceeding etc that affects the property.
(3) Must not give any notice / seek or consent to any
orders that affect the property / make any
agreement affecting the property that binds the
Buyer / unless consent is obtained from the Buyer.
8.4 Information regarding the property - Seller. Upon written request / prior to settlement, the
Seller must give the Buyer:
(1) Documents relating to unregistered interest in
the property.
(2) Full details of the tenancies.
(3) Sufficient details to enable the Buyer to undertake
PPSR search.
(4) The Local Government rate account number for
the land.
(5) Further copies or details.
8.5 Possession before settlement - Buyer.

9. Parties default
9.1 Seller and Buyer may affirm or terminate. Breach of essential term or fundamental breach of
an intermediate term, the Buyer/Seller may affirm of
terminate the contract.
9.2 If Seller affirms. The Seller may sue the Buyer for:
(1) Damages OR

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(2) Specific performance OR

(3) Damages and specific performance.
9.3 If Buyer affirms. The Buyer may sue the Seller for:
(1) Damages OR
(2) Specific performance OR
(3) Damages and specific performance.
9.4 If Seller terminates. All or any of the following:
(1) Resume possession.
(2) Forfeit the deposit and any interest.
(3) Sue the Buyer for damages.
(4) Resell the property.
9.5 If Buyer terminates. All or any of the following:
(1) Recover the deposit and any interest.
(2) Sue the Seller for damages.
9.6 Seller’s resale. (1) Liquidated damages.
(2) Profit.
9.7 Seller’s damages.
9.8 Buyer’s damages.
9.9 Interest on late payments - Buyer. (1) Default interest rate.
(2) Accrual of interest.
(3) Payable at settlement / termination – continues
to accrue.
(4) Preservation of other rights of the Seller.
10. General
10.1 Seller’s agent.
10.2 Foreign buyer approval.
10.3 (Transfer) duty - Buyer.
10.4 Notices. (1) In writing.
(2) Given and received by the Buyer’s/Seller’s
solicitors.
(3) Delivery.
(4) – (6) Date / receipt of notice.
(7) Authority - solicitor.
10.5 Business days. Next business day.
10.6 Rights after settlement.
10.7 Further acts.
10.8 Severance.
10.9 Interpretation. (4) Inconsistencies between special conditions and
standard terms.
10.10 Counterparts.
11. Electronic settlement

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 Summary of the standard terms of the REIQ contract for houses and
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11.1 Application of clause.

11.2 Completion of electronic workspace. (1)(a) Electronic workspace completed / electronic
conveyancing documents and the financial
settlement schedule are digitally signed.
(2) Time for settlement.
(3) Purchase Price to be used to pay an outgoing.
(4) Deposit to be used to discharge an encumbrance
or pay an outgoing.
11.3 Electronic settlement. (1) Clauses 5.1(1)(b), 5.1(2) and 5.2 do not apply.
(2) Satisfaction of Clause 2.5(1).
(3) Satisfaction of Clause 2.5(3)(c), (e), (f) and
2.5(5)(d)(e).
(4) Satisfaction of Clause 5.3(1)(b), (c), (d), and (e).
(5) Inaction of the other party or the mortgagee.
(6) Termination of the contract cannot occur when
the workspace is locked.
(7) When Electronic Settlement occurs.
11.4 Computer system unavailable.

11.5 Withdrawal from electronic settlement. (2) Time frame for provision of written notice.

11.6 Costs. Each party must pay own fees and charges of using
PEXA.
11.7 Definitions. Electronic conveyancing documents.
Electronic lodgement.
Electronic settlement.
Electronic workspace.
Financial settlement.
Financial settlement schedule.
12. Electronic contract and disclosure
12.1 Electronic signing.
12.2 Pre-contract disclosure.

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