The REIQ Contract Explained: A Queensland Agent’s Field Guide

You’ve negotiated the deal, the buyer and seller have shaken hands, and now it’s your job to put it in writing. The REIQ Contract for Houses and Residential Land is in front of you — sixteen pages, thirty-odd clauses, and a Reference Schedule where every blank carries consequences. Fill it correctly and the transaction proceeds cleanly. Fill it carelessly and you may be explaining yourself to a solicitor, a QCAT member, or an unhappy client months later.

This guide works through every critical section of the contract in the order an agent encounters it — from the Reference Schedule down to the special conditions page. It covers not just what each clause means, but what goes wrong in practice and what the real-world consequences are when it does.

The Current Contract: What Version You Should Be Using

Queensland Law Society and the REIQ jointly publish and maintain the standard residential contracts. New editions were released in June 2024 to reflect amendments to the Residential Tenancies and Rooming Accommodation Act 2008. The current edition for houses and residential land is the 19th Edition, with corrections applied in September 2024. Practitioners should ensure they have downloaded the Word document with “Sept 2024” in the title from the QLS website.

The contract is approved by both the Real Estate Institute of Queensland Limited and the Queensland Law Society Incorporated as being suitable for the sale and purchase of houses and residential land in Queensland, except for new residential property where GST liability must be dealt with by special condition.

Using an outdated version is not a technical formality — it matters. Whilst contracts prepared on previous versions are still binding, it is always recommended to use the most recent updated contract to take advantage of the new terms. If a clause has been updated to address a known problem and your contract uses older language, you may be on the wrong side of that problem when it arises.

The Reference Schedule: Where Most Errors Are Born

The Reference Schedule is the fillable front end of the contract. It contains all pieces of information relevant to the sale, and in addition to the critical items — details of the property, purchase price, deposit, and settlement date — other items that deal with fixtures and chattels must be checked to ensure they are correctly recorded. Agents who treat the Reference Schedule as a quick administrative exercise create problems that conveyancers spend weeks unwinding.

The Contract Date: The DocuSign Timing Trap

The contract date is not the day you view the signed document in your email inbox. The contract date is when both parties signed the contract, not the day the agent views it. With most contracts now signed via DocuSign, the certificate shows when the last party signed. Manually entering a later or earlier date misaligns all subsequent contract deadlines and can be costly for either party.

This is one of the most common errors in Queensland transactions. When a buyer signs on Tuesday evening and the seller signs via DocuSign on Wednesday morning, the contract date is Wednesday — not the date the agent processes the paperwork on Thursday. Every downstream deadline in the contract — finance date, building and pest date, settlement date — is calculated from this point. Shift it by a day and you may inadvertently shorten a finance period that a buyer is already stretching to meet.

The definition of Contract Date in the REIQ contract has been amended to accommodate signing of electronic contracts in Realworks. Agents should understand that the platform timestamp governs, not their own date entry. Where there is any ambiguity, defer to the completion certificate generated by the e-signing platform.

Seller’s Address for Transfer Duty

This field is often left vague — a post office box or simply the property address. It is not sufficient. The seller’s address is required for transfer duty purposes in Queensland. When acting for a buyer, these details are needed as they should be included on the electronic property transfer to align with transfer duty data. Transfer duty is audited by the state revenue offices, and omitting these details from the contract can delay the preparation of transfer documents and the buyer’s transfer duty forms, as well as lead to compliance issues.

If the seller has recently moved, confirm their current residential address rather than defaulting to the property being sold. For sellers with entities — companies, trusts, self-managed super funds — the registered address of the entity is required, not the address of a director. Get it right at contract stage, because correcting it later requires both parties’ cooperation at a time when they may be stressed and unavailable.

The Deposit: Amount, Timing, and Your Commission

The deposit field in the Reference Schedule looks simple. It is not. The amount entered directly affects the security of your commission, the seller’s ability to terminate for non-payment, and the buyer’s cooling-off exposure.

There is no legislated minimum deposit for a private treaty sale in Queensland, but industry practice typically lands between five and ten percent of the purchase price. It will assist agents in recovering their full commission promptly if a deposit of at least 3% (not more than 10%), or an amount enough to cover the commission that will be required to be paid, is obtained at the time a contract of sale is entered into.

In practice, agents who accept a nominal deposit — say $1,000 on a $700,000 sale — leave themselves exposed in two ways. First, if the buyer terminates during the cooling-off period, the termination penalty of 0.25% of the purchase price can only be deducted from the deposit held. The seller is entitled to deduct a termination penalty of up to 0.25% of the purchase price from the deposit. Any remaining deposit shall be refunded to the buyer. If no deposit has been paid, then the seller may not be entitled to claim the termination penalty against the buyer. Second, your commission is at risk if the sale collapses and insufficient funds are in trust.

Deposit Timing and the Trust Account

Agents must ensure that all deposit monies are kept in trust accounts and are not misapplied or transferred in contravention of the relevant act. The governing legislation is the Agents Financial Administration Act 2014 (Qld). The deposit must be paid into the agency trust account — not the agency general account, not the solicitor’s trust account, and certainly not any personal account.

If the deposit is not received by the due date in the contract, the seller can give notice to the buyer requesting payment be made within 2 business days. If the deposit funds are not received within those 2 days, the buyer is then in breach, meaning the seller can terminate the contract. This grace period helps with delays that may occur with electronic payments, including non-intentional mistakes where a buyer may make a mistake transferring the deposit to the solicitor’s trust account instead of the agent’s trust account.

When the contract proceeds to settlement, it is important that agents send an invoice for their commission to both parties’ conveyancing solicitors well in advance of the settlement date so that a cheque can be drawn at settlement for the agent’s commission. Do not assume the solicitor knows your commission figure — confirm it in writing and in plenty of time.

Clause 3: The Finance Condition

Clause 3 of the REIQ contract provides that the contract is conditional on the buyer obtaining approval of a loan for the finance amount from the financier by the finance date on terms satisfactory to the buyer. Clause 3 is only activated if each of these three items — finance amount, financier, and finance date — is completed in the Reference Schedule.

This is a frequent source of transaction failure. If any of the sections such as ‘finance date,’ ‘finance amount,’ or ‘financier’ are left blank, the contract may not be subject to finance. An agent who leaves these fields incomplete for a buyer who clearly needs finance approval has potentially put that buyer in a very difficult position — they are under contract with no exit clause.

If the contract is dependent on finance, the finance section should specify a deadline for meeting the financial requirement, usually within 14 or 21 days after all parties sign the contract. Fourteen days is often insufficient for a buyer with complex lending circumstances — a non-resident buyer, a self-employed borrower, or a purchase requiring lender’s mortgage insurance. Agents should have a realistic conversation with the buyer about what timeline their lender actually needs rather than defaulting to the shortest number that might appeal to the seller.

The “Reasonable Steps” Obligation

There are many misconceptions amongst buyers, sellers, and agents about the circumstances that allow a buyer to terminate a standard REIQ residential contract under the finance clause. One of the most common is the finance clause operating as a ‘get out of jail free card’ in the event the buyer gets cold feet or finds a better deal elsewhere.

The contract requires the buyer to take all reasonable steps to obtain finance. This means actually applying, providing requested documentation, and genuinely pursuing approval — not passively waiting for a lender they haven’t contacted. A buyer who terminates under the finance clause while having taken no genuine steps to obtain finance may not be entitled to terminate at all, and the seller may have grounds to retain the deposit. Agents should understand this, because a seller who receives a finance termination that smells suspicious should be told it is worth getting legal advice before simply releasing the deposit.

Once the finance period passes and the sale becomes unconditional, it is generally difficult to legally walk away from the transaction in Queensland. Once unconditional, the transaction is effectively locked.

Clause 4: Building and Pest Inspection

Similar to the finance condition, the contract being subject to building and pest inspections is dependent on the inspection dates being completed in the Reference Schedule. Clause 4.1 requires the buyer to obtain a written report from a building inspector and pest inspector on terms satisfactory to the buyer. The buyer is required to act reasonably, but subject to this requirement, may terminate the contract should the report be unsatisfactory.

Two nuances here that agents and their clients frequently misread.

First, unlike some other contract forms, the REIQ sale contract does not require the provision of the report itself in order to activate any purported termination by the buyer. The buyer does not need to hand over the report to the seller. They simply need to give notice by the due date.

Second, another issue that often arises is the lack of building approvals. It is important to note that as a general rule, finding out that a property contains unapproved structures — for example, a shed without appropriate council approvals — will not be grounds to terminate under the building and pest condition. Unapproved structures are a disclosure issue and a potential seller warranty issue, but they do not automatically trigger the building and pest termination right. A buyer who terminates on that basis alone may not be on solid ground.

The “act reasonably” requirement cuts both ways. A buyer who attempts to terminate over minor cosmetic issues or a single page of routine maintenance items will find their position challenged if the seller disputes the termination. The standard is not whether the report contains anything adverse — virtually every report does. It is whether a reasonable buyer in the circumstances would consider the results genuinely unsatisfactory.

Clause 6: Settlement Date and Time Is of the Essence

Settlement date is entered in the Reference Schedule. The period between the date of the contract and the date set down for settlement is usually 30 days for a residential contract. However, this time period may be increased or reduced according to the requirements of the parties.

The critical legal concept here is that time is of the essence in the REIQ contract. This means a party who fails to settle on the scheduled settlement date is in breach of an essential term — and the consequences are serious. A buyer undertaking their own conveyancing needs to read the clauses carefully and be aware that failure to comply strictly with any time provision of the contract will give the seller a right to terminate.

In practice, settlement delays are common. The contract now provides a statutory safety valve.

The Clause 6.2 Extension Right

One of the significant amendments to the contract under clause 6.2 is the ability of either party to obtain an extension for up to 5 working days if they are unable to settle due to delay or inaction of the Financier or any other reason. The new clause grants a unilateral right to an extension of up to 5 business days, provided it is exercised prior to 4:00pm on the Scheduled Settlement Date. There is no limitation on the number of extensions that can be requested, provided the cumulative time does not exceed 5 business days.

Under clause 6.2 of the standard contract, a seller or buyer can extend the settlement date by up to 5 business days without consent. This means neither party needs the other’s agreement to trigger the extension. They simply need to give written notice before 4:00pm on the scheduled settlement date.

Agents should know two practical points here. First, this extension right applies once in aggregate — a party cannot stack multiple notices to manufacture a ten-day extension. The cap is 5 business days total. Second, the notice must be in writing and served before the 4:00pm deadline. An agent who tells a buyer verbally that settlement will be extended has done nothing legally useful.

”Place of Settlement” Is Not PEXA

This is a common and consequential misunderstanding. Some agents — and even some solicitors — have begun noting “PEXA” or “electronic settlement” as the place of settlement. This is wrong and potentially problematic.

The “place for settlement” section matters because if electronic settlement isn’t possible for some reason, the place for settlement is what decides the fallback location for a paper settlement. If the seller’s solicitor has an office in Queensland, the settlement takes place in the city or town where that office is located. If the seller doesn’t have a solicitor or their solicitor is not based in Queensland, the default settlement will be Brisbane CBD.

The vast majority of Queensland residential settlements now complete through an Electronic Lodgement Network Operator (ELNO) — most commonly PEXA. But PEXA is the platform, not the legal place of settlement. If a technical issue prevents electronic settlement and the contract nominates “PEXA” as the place, there is ambiguity about where the parties are actually required to present for manual settlement. Leave the place of settlement as the default derived from the solicitor’s office location, and let the conveyancing parties handle the PEXA workspace.

Clause 7: Seller Warranties — What the Seller Is Actually Promising

The seller warranty clause is the section most sellers scan quickly and sign without understanding. As an agent, you need to understand what these warranties cover because your disclosures at listing stage feed directly into whether the seller can stand behind them.

Seller warranties in clause 7.4 have been renumbered and a new warranty has been added. The seller now warrants that they have not received communication from a competent authority that may lead to the issue of a show cause or enforcement notice or a notice to do work.

This warranty matters for agents at listing. If a seller has received any council correspondence, compliance notices, or show-cause letters about the property and hasn’t disclosed it, they are in breach of their warranty at contract. If the buyer discovers this, the consequences can include termination and a damages claim. The time to surface this information is when you first inspect the property and take the listing — not after the buyer’s solicitor finds it in a search.

The 19th Edition also includes updated seller obligations regarding residential tenancy history. Sellers are now required to disclose whether the property has been subject to a residential tenancy agreement at any time within the last 12 months prior to the contract date, and the date of the last rent increase if applicable. Where a property has been rented out at any time in the last 12 months and the seller fails to disclose this, or provide evidence of the last rent increase to a buyer before settlement, the buyer may be entitled to terminate the contract. This newly imposed disclosure obligation on the seller is defined in the REIQ contracts as an “essential term.”

An essential term breach gives the innocent party the immediate right to terminate and claim damages. That is the most serious category of breach under the contract. Agents listing recently tenanted properties must ask the seller directly about when the tenancy ended and when rent was last increased.

The Cooling-Off Clause: How It Works and Where Agents Go Wrong

Every residential contract in Queensland carries a statutory cooling-off period unless specifically excluded. The cooling-off period is five business days and begins on the first business day after the buyer receives a copy of the fully executed contract signed by all parties, as outlined in Section 166 of the Property Occupations Act 2014 (Qld).

The cooling-off period ends at 5:00pm on the fifth business day. Once the cooling-off period expires, the buyer no longer has the right to terminate the contract under this provision.

In Queensland, the statutory cooling-off period starts on the business day the buyer, or their solicitor, receives the signed contract. There are exceptions to this rule, including when the property was sold at auction or the buyer elects to waive or shorten the cooling-off period.

If a buyer exercises their cooling-off right, the seller does not simply get the deposit back. The seller is entitled to deduct a termination penalty of up to 0.25% of the purchase price from the deposit. Any remaining deposit shall be refunded to the buyer. On a $900,000 property, that penalty is $2,250 — real money, but not the full deposit.

Agents sometimes assume that a fast exchange, a motivated buyer, and a strong verbal commitment mean the cooling-off period is academic. It is not. Buyers who have a change of heart, receive different advice from their solicitor, or simply get cold feet can and do exercise this right. Agents should ensure the buyer receives their copy of the fully executed contract promptly — that clock starts ticking the moment they have it, which means the earlier it starts, the earlier the deal becomes firm.

There are situations where no cooling-off period applies: certain transactions are exempt, including follow-up sales after an unsuccessful auction, provided the sale occurs before 5:00pm on the second business day and the buyer was a registered bidder at the auction. The cooling-off period also does not apply where the buyer is a publicly listed company or subsidiary, the State or a statutory body, or is buying three or more lots at once.

Special Conditions: The Agent’s Line in the Sand

Many types of special conditions can be added to the standard REIQ contract — for example, a buyer may require the contract to be subject to the sale of another property or the completion of certain work on the property before settlement. These clauses should be prepared carefully to avoid any uncertainty. Ideally, a solicitor should draft an appropriate clause to suit the particular situation.

This point deserves emphasis. The contract allows for the inclusion of any special conditions, which cannot be written by an agent in Queensland and must be prepared by a legal practitioner for clarity. An agent who drafts a special condition — even a well-intentioned one — is operating outside their authority and potentially engaging in legal work without a practising certificate. If that condition is ambiguous, unenforceable, or inconsistent with another contract term, the agent may bear personal liability.

The practical approach is to describe the commercial intention clearly — “the buyer requires access to the property to obtain a builder’s quote prior to settlement” — and instruct the buyer’s or seller’s solicitor to draft appropriate language. Note the commercial intent in your file. Do not write the clause.

Buyers should be particularly wary of special conditions that are added to the contract. In some instances, sellers may delete certain provisions of the standard terms of contract without explaining the full significance of those deletions to the buyer. As the agent, your duty of disclosure means ensuring both parties understand any departures from the standard terms, not just the insertions.

Subject-to-Sale Conditions

A buyer who needs to sell their existing property before completing the purchase is a scenario agents encounter frequently. A subject-to-sale clause is a legitimate special condition but requires precise drafting — it should specify the address of the property to be sold, the deadline for that sale to become unconditional, and the mechanism for either party to terminate if that deadline is missed. Vague language such as “subject to the sale of the buyer’s current property” without timelines creates an open-ended condition that effectively stalls the seller indefinitely.

The Risk and Insurance Provision

The REIQ contract provides that the property is at the risk of the buyer from 5pm on the first business day after the contract date. As soon as possible after the contract is signed, it is very important that buyers protect their interest in the property by arranging appropriate insurance over the property.

This surprises many buyers — and some agents. The buyer carries the risk of loss or damage from the end of the first business day after the contract date, even though they don’t own the property yet and may not settle for 30 to 45 days. A fire, flood, or storm event between contract and settlement is the buyer’s problem unless the seller is at fault.

Agents should mention this to buyers at the point of signing, not as a disclaimer but as practical guidance: arrange insurance tomorrow morning. Buyers with finance conditions may find their lender insists on it anyway.

Inclusions, Exclusions, and Chattels

The standard REIQ contract transfers the land and all fixtures. Fixtures — items permanently attached to the property — pass with the land automatically. Chattels — moveable items — must be specifically listed as inclusions to be part of the sale.

In addition to the critical items, other items that deal with fixtures and chattels should be checked to ensure they are correctly recorded. If an item is not a fixture (permanently attached to the property), it must be listed as an inclusion to be part of the sale. Likewise, any fixtures the seller wants to take must be listed as an exclusion.

Common disputes arise over items in an ambiguous middle ground: freestanding dishwashers, wall-mounted televisions, outdoor furniture, pot plants, curtains, light fittings, and pool equipment. The solution is simple: if there is any doubt, list it. A complete inclusions list takes two minutes to write and prevents disputes that can delay settlement or fracture an otherwise healthy buyer-seller relationship.

What This Means for Queensland Agents

The REIQ contract is not a form you fill in — it is a legal instrument you prepare. Every field carries consequences, and the Reference Schedule in particular determines the legal framework within which the whole transaction operates.

The highest-risk errors are not obscure technicalities. They are the mundane ones that happen under pressure at the end of a negotiation: the wrong contract date after a multi-party DocuSign sequence; a deposit too small to cover your commission if the deal falls over; a finance clause with incomplete fields that turns a conditional buyer into an unconditional one without their knowledge; a settlement date entered without accounting for the finance and building inspection periods that precede it.

In Queensland, agents play a key role in preparing the Contract of Sale and facilitating its execution, and with that key role comes awareness of the most common mistakes — and how to avoid them.

Several specific habits will serve you well on every transaction:

• Confirm the contract date against the DocuSign completion certificate, not your inbox timestamp.
• Obtain a full residential address for the seller, not just the property address.
• Set a deposit that covers your commission, with clear instructions on which trust account receives it.
• Ensure all three finance fields — amount, financier, and date — are completed if the buyer is borrowing.
• Nominate a realistic finance period, not the shortest one that seems acceptable.
• Never write a special condition yourself — record the commercial intent and refer it to a solicitor.
• Note the place of settlement correctly based on the seller’s solicitor’s location, not “PEXA.”
• Advise buyers to arrange insurance before the end of the first business day after the contract date.

The contract underpins your commission, your professional reputation, and your clients’ most significant financial transaction. Handling it with precision is not bureaucratic caution — it is the core of what a competent Queensland agent does.