{"id":36605,"date":"2022-01-25T17:36:08","date_gmt":"2022-01-25T04:36:08","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=36605"},"modified":"2022-01-25T17:36:08","modified_gmt":"2022-01-25T04:36:08","slug":"major-change-after-queensland-home-buyers-lose-life-savings-to-horrendous-rule","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/major-change-after-queensland-home-buyers-lose-life-savings-to-horrendous-rule\/","title":{"rendered":"Major change after Queensland home buyers lose life savings to \u2018horrendous\u2019 rule"},"content":{"rendered":"

PHOTO: Real Estate Institute of Queensland (REIQ). FILE<\/strong><\/p>\n

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A controversial rule used in Queensland\u2019s property transactions has changed after it caused home buyers to lose their life savings.<\/p>\n<\/div>\n

Last month, the Real Estate Institute of Queensland<\/a> (REIQ)\u00a0flagged that it would be releasing a new edition\u00a0of the Houses and Land and Residential Community Title.<\/p>\n

That change came into effect at the end of last week, on January 20.<\/p>\n

Before the contract rules were amended, Queensland was the only Australian state that didn\u2019t grant a two-week grace period if a property settlement deadline fell through.<\/p>\n

It meant once the contract was over, the Queensland vendor was legally entitled to pocket the purchaser\u2019s entire 10 per cent home deposit, meaning the buyer can lose everything.<\/p>\n

But that\u2019s all changed.<\/p>\n

Last year, news.com.au reported on engaged couple\u00a0Mark Trau and Maddie Goyder losing a $75,000 home deposit\u00a0\u2013 that they had been saving up since teenagers \u2014 because a manual error meant their bank was 24 hours late at settling.<\/p>\n

In an even more extreme case, Brisbane epidemiologist Dr Loretta McKinnon\u00a0lost her dream home after the Commonwealth Bank delayed by 13 minutes\u00a0on the date of settlement.<\/p>\n

The update to the contractual requirements of a Queensland property deal has changed this \u201csudden death\u201d rule however, there\u2019s still a major catch.<\/p>\n

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\"Mark<\/div>\n

Mark Trau and Maddie Goyder were \u2018stung\u2019 by the largely unknown rule earlier this year.<\/strong><\/em><\/div>\n

REIQ chief executive Antonia Mercorella previously told news.com.au that the state\u2018s contractual requirements were changing after her institute heard about deals falling through at the 11th hour.<\/p>\n

\u201cBecause of the volume of transactions that\u2019s happening and because of Covid-19, banks are often causing delays. What we\u2019ve been seeing is that banks are often not ready. Obviously we recognise that is outside the control of either party,\u201d she said.<\/p>\n

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