Updates to standard REIQ House & Residential Land and Residential Lots in a Community Titles Scheme contracts

The REIQ and the Queensland Law Society have agreed to amendments to the standard REIQ House & Residential Land and Residential Lots in a Community Titles Scheme contracts to accommodate the national unfair contracts law commencing 1 July 2010 and to provide greater consistency between the two forms.

Version 7 of the House & Residential Land and version 3 of the Residential Lots in a Community Titles Scheme contracts will be available from Thursday 1 July 2010 for use by the profession. The REIQ have published sample versions of the updated forms on their RealWorks website.

The Queensland Law Society Property and Development Law Section has prepared a table for each contract to step members through the changes in the new versions and the rationale behind them:

7th Edition REIQ House & Land Contract amendments

3rd Edition REIQ Residential Lots in a CTS Contract amendments

Amongst other changes the amendments:

• better deal with the Residential Tenancies and Rooming Accommodation Act 2008;
• clearly include the Queensland Civil and Administrative Tribunal within the definition of court;
• list essential terms for both buyers and sellers, breaches of which may found termination rights;
• remove the deemed satisfaction of the building and pest condition;
• clearly list affirmation and termination rights for sellers and buyers;
• cater for the decision of Riggall v Thompson [2010] QCA 144 with respect to the seller’s loss; and
• include a severance clause.