It always amazes our team how quickly the holiday season comes around every year. It's an important reminder of the things that matter most in life, and sharing the holidays with our friends and loved ones.
We often see an influx of property contracts and settlements in late November and December in anticipation for the holidays. After all, many people want to start the new year afresh in their new home.
Whilst many of us will be taking leave over this time, it's important to understand how this period impacts our legal obligations, and the strict time frames still in place for property contracts.
What Is A 'Business Day'?
When it comes to property transactions in Queensland, REIQ contracts provide a clear definition of what constitutes a 'Business Day.'
Standard Term 1.1(h) notes that a:
If a critical date (e.g. deposit, finance, building and pest) falls on a non-business day, then it will fall due the following business day. Note that this applies for both residential and commercial REIQ contracts.
Whilst it may be convenient for buyers and sellers to use the holiday period as an opportunity to move, contracts do not allow for this due to the complexities of some business and services being operational over this time, whilst others may be closed. This is particularly true for many banks and lenders.
So What Happens If A Contract Condition Or Settlement Falls Over The Holiday Period?
What does this mean for your property contract if you have an important condition due around the holiday season?
Simply put, if a condition is set to fall between Christmas Day and New Year’s Day, it will automatically extend to the first business day after this holiday period.
This means that any conditions which fall between 25 December 2024 and 1 January 2025 will automatically default to Thursday 2 January 2025.
However, from a practical point of view, this does mean that all the necessary work to prepare for settlement will need to be finalised with any lender and solicitor prior to the holiday period to ensure a smooth settlement in the new year. It is important that you are liaising and escalating your matter with your lender, whilst ensuring that any and all loan documents are returned promptly to ensure there are no delays.
For this reason, we would generally recommend the parties negotiate for Settlement to take place a few days after everyone has returned to work to ensure funds are available and everyone is prepared. Our office will remain open during this period, but do not assume that all businesses are open.
Note that if you have a 17th Edition REIQ Contract or later, you generally have additional rights under standard term 6.2 to extend settlement by up to five business days without penalty. This could provide some much-needed extra time to finalise arrangements for Settlement if required.
Cooling Off Periods
Whilst condition due dates get a break during the period from 27 to 31 December, the cooling off period does not.
Unlike standard conveyancing contract conditions, cooling off periods are governed by legislation, and mean they run according to statutory rules.
This means the cooling off period will continue to run on 27 December 2024 (noting that all other days during this period are a weekend or public holiday).
If you sign a contract between 25 December and 1 January, this date (27 December) will count towards your statutory five business day cooling off period.
This is a critical point to keep in mind, as many law firms and real estate agencies may be closed, and your cooling off period could expire before these businesses reopen. If you are using RHC Solicitors, our business remains open during this period, and we will always remind clients when their cooling off period will end to ensure you can exercise your right to terminate should you wish to.
Other Considerations
Keep in mind that the information above only applies to standard REIQ contracts. If you have signed an Off-The-Plan contract, contracts with further special conditions, or non-standard form contracts, different rules may apply.
Ensure you have checked your specific contract terms carefully, and contact your legal representative if you have any questions.
We would also recommend you consider getting a contract review prior to signing to ensure that the contract has not only been prepared correctly, but also so any hidden clauses that deal with this holiday period can be amended according to your needs and goals. Please don't hesitate to contact our friendly team if you have any questions or need to discuss anything further.
RHC Solicitors remains open during this holiday period (excluding public holidays and weekends) to assist our clients during this period.
We wish all our clients, business partners and the broader community a safe and festive holidays period.
Disclaimer: This publication is not intended to be comprehensive, nor does it constitute legal advice. We are unable to ensure the information is current and there is no guarantee in relation to accuracy. You should seek legal or other professional advice before acting or relying on any of the content of this publication. The views and/or opinions expressed in this publication is that of the author and may not necessarily represent the views and/or opinions of RHC Solicitors.
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