cyclone alfred and what it means for contracts in Queensland
With the threat of Cyclone Alfred upon us we thought we would take the opportunity to provide an update as follows:
IF YOU HAVE AN UPCOMING SETTLEMENT
If you have an upcoming settlement and your contract is a standard REIQ contract, clause 6.3 (Delay Event) will apply so that if you are unable to perform a settlement obligation as a result of a cyclone or flood, time will be suspended.
You must take reasonable steps to minimise any delay and advise the other party when you are in a position to settle.
IF YOU HAVE A CURRENT CONTRACT ON FOOT
If you have a current contract on foot, please ensure you have taken our insurance coverage in accordance with the terms of the contract.
In Queensland, the property is at the Buyer’s risk at 5pm the first business day from the Contract Date (unless amended by a special condition).
IF YOU ARE LOOKING AT PURCHASING A PROPERTY
If you are looking at purchasing a property, you may wish to include the following special conditions. You should also satisfy yourself that you can in fact obtain insurance coverage and you are satisfied with the terms of coverage.
1. Property at Seller’s Risk Up Until Settlement
Notwithstanding the provisions of Clause 8.1 of the Terms of Contract for Houses and Land, the Seller and Buyer hereby agree that the Property shall be at the Seller’s risk up to and including the Settlement Date.
2. Subject to insurance approval
a. This Contract is subject to and conditional upon the Buyer obtaining satisfactory insurance coverage for the property (in the Buyer’s absolute discretion) within fourteen (14) days from the date of the Contract (‘the Due Date’).
b. The Buyer must give notice to the Seller that:
(i) it is satisfied with its insurance coverage, and this special condition is either satisfied or waived; or
(ii) it is not satisfied with its insurance coverage, and the Buyer terminates this Contract, in which case, the deposit is to be refunded in full.
c. The Seller may terminate this Contract by notice to the Buyer if notice is not given under clause (b) by 5pm on the Due Date, in which case, the deposit is to be refunded to the Buyer. This is the Seller’s only remedy for the Buyer’s failure to give notice.
d. The Seller’s right under clause (c) is subject to the Buyer’s continuing right to give written notice to the Seller of satisfaction, termination or waiver pursuant to clause (b) above.
