The reform, set to come into effect in January 2022, has been introduced to stop home buyers becoming penniless if settlement delays arise by giving Queensland buyers an extra five business days to complete settlement.
SettleIT General Manager, Daniel Petrucci, says “the announced reforms to Queensland property law are a welcome relief for home buyers but finally plays catch up with most other Australian states”.
“Purchasing a home is already a highly stressful activity for home buyers. When layered with a critical deadline that can result in the complete loss of a deposit, it adds to the anxiety and pressure for all involved.”
Currently in Queensland, the date of settlement is a critical deadline. If a property settlement cannot be met in time, the contract can be terminated immediately. Once the contract is terminated, the vendor is legally entitled to receive the purchaser’s deposit.
Reasons for not settling on time can come down to circumstances such as human error or bank delays.
“The reforms will offer a grace period if settlement cannot be met,” Petrucci continues.
Petrucci leads SettleIT, a solution built for lawyers and conveyancers to outsource matters when they need support and assurance with settling on time.
Petrucci explains, “The SettleIT team are no strangers to managing matters which experience delays. We aim to make settlement as easy as possible for not only our clients, but the home buyer. Queensland’s latest move to add an extra five days of breathing room provides peace of mind on each party’s behalf.”
To date, SettleIT has assisted over 1,500 firms this year to handle property settlement matters and remains open for business to manage any settlements over the Christmas and New Year period.