Queensland property law is set to change its grace period with a new edition of the Houses and Land and Residential Community Title, on January 20.
The change that will result in buyers and sellers being given a grace period change from zero to five business days as a result of a string of recent cases in potential home buyers losing thousands of dollars.
The Real Estate Institute of Queensland (REIQ) flagged that it would be releasing an update of the title law in December last year.
news.com.au reported that REIQ, CEO, Antonia Mercorella said the law was changing after her institute heard about deals falling through at the 11th hour.
She explained how Queensland prided itself on being the state with the “swiftest” property transactions, with most settlements taking just 30 days whereas other places usually require six to eight weeks.
“It’s the envy of many other jurisdictions,” Mercorella said.
Grace period comparison State-by-State
In most other Australian states a two-week grace period is given if a property settlement deadline can’t be met in time, but not in Queensland. The contract can be terminated immediately.
And once the contract is torn up, the Queensland vendor is legally entitled to pocket the purchaser’s entire 10 per cent home deposit, meaning the buyer can lose everything.
Mercorella explained that the change has still allowed for a faster turnaround in the new law compared to other states with “time being of the essence” the reasoning for only five days instead of two weeks.
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