This edition of our newsletter discusses
the latest changes to REIQ Contracts and paper Certificates of Title in
Certificates of Title no longer required
From 1 October 2019, paper Certificates of Title will no longer be used and will cease to be an instrument under the Land Title Act 1994.
This means that from 1 October 2019, paper Certificates of Title will not need to be produced when registering the sale of a property or mortgage.
Approximately 11% of land owners in Queensland currently hold a paper Certificate of Title. Please feel free to give us a call to discuss how these changes may affect your client’s interests.
| New REIQ Contracts now live |
The latest editions of the Queensland Law Society approved REIQ Contracts are now available.
The latest editions are: Contract for Houses and Residential Land Contract 16th Edition; and Contract for Residential Lots in a Community Titles Scheme 12th Edition. The key changes are:
To date, the electronic settlement space has been dominated by Bank and Government owned provider, PEXA. However the entry of new players to the market like Sympli has prompted the industry, and the REIQ Contracts, to adapt.
References to PEXA in the now superseded REIQ Contracts have been replaced with references to Electronic Lodgement Network Operators, or “ELNO Systems”.
This change will provide scope for clients to choose which ELNO System to use in response to greater competition in the electronic settlement market, which should deliver better, more cost effective options for our mutual clients.
Previously, the REIQ Contracts provided the parties with the ability to “suspend time” and delay Settlement without penalty in the event of a Natural Disaster, like a flood or tsunami.
The latest REIQ Contracts have broadened the scope of those provisions that dealt with Natural Disasters to include other things, like riots and terrorist acts, all of which are now collectively referred to as Delay Events.
Of key interest is the addition of orders or directions given by Government Agencies, which include Courts and Tribunals, as potential Delay Events.
This could mean that a party to a Contract, that is also a party to a Court Order, such as a Family Court Order, who finds that they’re unable to comply with that Order, may call upon the Delay Event provisions in the REIQ Contract and delay Settlement without penalty.