10 HOT TIPS ON COMPLETING THE NEW QUEENSLAND REIQ CONTRACT (FIRST EDITION)

Putting the new Seller Disclosure Form 2 to one side, the new REIQ Contract (First Edition) has a number of changes that you should be aware of.

Please see below 10 tips for completing the contract correctly to avoid unnecessary issues for all parties involved.

1. Using the correct form of contract

From 1 August 2025, agents should be using the REIQ Contract for the Sale and Purchase of Residential Real Estate (First Edition) for all residential sales including lots in a body corporate.

2. Due dates for deposit payments

The new REIQ contract terms clarify that a deposit can be due on a non-business day (ie. on a Saturday or Sunday).

If buyers are wanting to avoid this, we recommend making the due date ‘2 business days after the Contract Date’.

3. Settlement extensions

Settlement can be extended under clause 6.2 (unilateral right to extend by up to 5 business days) and the new clause 6.3 (if the PEXA workspace is unsigned by a party between 3pm and 4pm on the settlement date and any party has not resigned by 4pm, the settlement date will automatically extend to the next business day).

4. GST

You need to confirm whether the property is:

‘new residential premises’; or
‘potential residential land’; and
whether the seller is registered for GST.

If the property is not new or the seller is not registered for GST, GST is generally not applicable, and the first box below should be ticked.

Ensure the relevant sections are completed based upon the information provided by the seller. Agents should be careful not to provide tax advice. If there is any uncertainty, sellers should consult their accountant or tax adviser.

If no selection is made, no GST is payable, or the Purchase Price includes GST.

5. Land tax

In Queensland, land tax is assessed annually on 30 June and is the responsibility of the owner as at that date. Unless the contract provides otherwise, land tax is not adjusted between the parties on settlement of residential property. The new REIQ contract does however allow parties to agree whether land tax will be adjusted at settlement (so the buyer bears a portion of the seller’s land tax liability) and on what basis.

If the seller is selling their principal place of residence, it is likely they will be exempt from land tax and as such, the default position of ‘no adjustment is to be made for land tax’ is appropriate.
If the seller is selling an investment property and they do pay land tax, agents should confirm if the seller wants to adjust their land tax liability, so the buyer is required to reimburse the seller for the portion of land tax from the settlement date until 30 June in that tax year.

If adjusted, it is irrelevant that the buyer is purchasing the property as their principal place of residence – this is only relevant for buyers for the future tax years and if the exemption will apply.

If land tax is adjusted, on what basis?

If a seller indicates that land tax is to be adjusted, the seller will have to confirm whether it is to be adjusted on:

a single holding basis (land tax is calculated as if the seller owned only the subject property with no aggregation for other land they may own); or
on the seller’s actual land tax liability (adjustment is based on the seller’s actual land tax bill which may include aggregation of all landholdings and higher rates for trusts/companies).

The pros of using the single holding basis is the adjustment is based on the property itself and not the Seller’s wider portfolio or tax structure which is generally fairer to the buyer. The negative is the seller’s actual land tax liability may be higher due to aggregation or trust/company rates, and a seller may not be fully reimbursed for the tax attributable to the property.

The pros of using the actual land tax liability approach is the seller is reimbursed for the actual land tax paid, including any aggregation or higher rates due to their ownership structure. This may however be less attractive to a buyer as they may pay a higher adjustment amount, effectively subsiding the seller’s aggregated land tax or trust/company rates, which are unrelated to the subject property.

If sellers are not sure, they should be referred to their accountant or tax adviser as agents cannot provide tax advice.

6. Property sold subject to tenancies or property has been rented in the past 12 months

If the property is sold subject to an existing tenancy in place, the new Tenancy Schedule must be completed and attached to the Contract. Failure to include this Tenancy Schedule or the recording of inaccurate details could entitle the Buyer to claim compensation.

Under clause 8.4(2), the Seller must give the buyer:

Copy of the lease;
Entry condition report;
The most recent routine inspection report;
The RTA Form 2 Bond Lodgement form; and
The current Tenant’s tenancy application.

If the Seller does not hold these records, we suggest clause 8.4(2) be deleted.

Under clause 5.5(1)(e), the Seller must provide evidence of the date of last rent increase and if they fail to do so, the Buyer may have a right of termination. It is therefore critical that agents take care in completing the date of last rent increase in the reference schedule and ensure it also matches that disclosed in the Form 2 Seller Disclosure. If this is not disclosed, or is incorrect, it may entitle a buyer to terminate the Contract or claim compensation.

7. Pool safety certificates

Under the new contract terms, you must record if there is a pool on the Lot or on adjacent land used in association with the Lot (i.e. a shared pool in a body corporate). The following requirements for pool safety certificates and notice of no pool safety certificates therefore apply to both non-shared and shared pools. A compliant pool safety certificate must be valid as at the date of the Contract. If it expires before the settlement date, the seller is not obliged to provide a new certificate.

If there is no pool safety certificate at the date of the Contract, a Notice of No Pool Safety Certificate must be given to the buyer prior to the buyer signing the Contract. Failure to do so may entitle a buyer to terminate the Contract.

8. Lots in a Community Title Scheme and Lots in a Building Unit and Group Title Parcel

If the lot is part of a body corporate, you will need to complete one of the following warranties and contractual rights (not both) on behalf of the seller for:

Lots in a Community Title Scheme; OR
Lots in a Building Unit and Group Title Plan

To determine what section is applicable, look at the title search. If there is a Community Management Statement (CMS) (eg. ‘CMS 1234567’) then it is a lot in a Community Titles Scheme. If so, the Lots in a Building Unit and Group title Parcel Warranties and Contractual Rights section does not need to be completed as it is not applicable.

When completing the information below, it is not sufficient to state ‘refer to disclosure’ as has been previously done in the past as there are no longer section 206 Disclosure Statements. Instead, the Seller is required to review and disclose any applicable information below:

If the seller cannot answer the information or they do not know, they should be directed to the Body Corporate Manager who may be able to assist them. Alternatively, they should consider obtaining a section 223 Implied Warranty Search and Statement – we recommend the services of mybodycorpreport.com.au for this service (allow 3-5 business days and the fee is approximately $300.00). If this is not disclosed, or is incorrect, it may entitle a buyer to terminate the Contract or claim compensation.

9. Body Corporate Records Inspection Date

If a buyer wants to make the contract conditional upon body corporate record searches, the Inspection of Body Corporate Records Inspection Date must be completed on page 5 under the correct heading (ie. if the lot is in a Community Title Scheme or Building Unit and Group Title Parcel – see point 8 on how to determine which one applies).

10. If in doubt – ask!

The consequences of completing the contract and Form 2 Seller Disclosure incorrectly can be catastrophic for a seller. If you are unsure on how to complete anything, please feel free to contact our office and one of our team will be happy to assist (we would prefer that you ask than guess, and then it be too late).

We also offer a Seller Disclosure preparation service (our fees are $899 for a house/land and $1049 for lots in a body corporate). Our turnaround times are 3-5 business days for a house/land and 5-10 business days for lots in a body corporate. As part of this service, we offer a free pre-signing contract review of a standard REIQ sale contract before the parties sign (same day review service).

Need a Seller Disclosure Prepared – Click through to our portal now.