With Christmas fast approaching, we thought it would be timely to discuss some of the obvious (and not so obvious) clauses in the REIQ Contract that deal with conditions and Settlement due dates. As discussed below, this is particularly important around Christmas as buyers and sellers are keen to complete their transactions before the holiday period.
Pool Condition Due Dates
This is the condition that most often tricks up buyers and sellers.
If there is a date written into the reference schedule in the Pool Inspection section, the condition will fall due on that date.
If the due date has been left blank and there is no current Pool Safety Certificate in place for the pool or spa, then the condition will either fall due on –
the Building and Pest due date; or
If the contract is not subject to a Building and Pest condition, then two business days before settlement.
This condition does not apply to contracts formed at Auction.
Saturdays, Sundays & Public Holidays
If a condition or Settlement falls due on a weekend or a public holiday then it will fall over onto the next available business day. For example, if Settlement falls due on a Saturday and the following Monday is a public holiday, Settlement will be on the Tuesday.
The Christmas Period
The latest versions of the REIQ contracts stipulate that the days which fall between the 27th December and the 31 December (inclusive) i.e. between Christmas and New Years are treated as being a public holiday.
Using this year as an example, if a condition or Settlement falls due on say the 27th December 2016, it would be pushed over to the 3rd January 2017 being the next available business day after the 31st December 2016.
Please don’t hesitate to call us if you would like further assistance or clarification.