Understanding how Business Days might affect your festive season sale
As we approach the holiday season, it's crucial for buyers and sellers preparing to sign a Residential Contract of Sale to understand how Business Days are defined under REIQ (Real Estate Institute of Queensland) contract terms. This definition has significant implications for contract conditions, cooling-off periods, and settlement dates, particularly at this time of year.
What is a Business Day?
Under the REIQ contract definitions, the following days are not considered business days:
Weekends: Saturdays and Sundays are excluded.
Public Holidays: Any public holiday observed in the location of the settlement does not count.
Christmas/New Year Period: The dates from December 27th to December 31st are explicitly excluded each year.
Impact During the Holiday Season
The holiday period often creates a unique scenario for property transactions. For example, from December 25th to January 1st, no contract conditions, such as building inspections, finance approvals, or cooling-off periods, can progress. Settlement dates also cannot occur during this time.
Instead, any deadlines falling within this window will roll over to the next official business day. For this upcoming season, the first business day of the new year will be Thursday, January 2nd, 2025.
What This Means for Buyers and Sellers
Whether you're a buyer or seller, here’s how this timing affects you:
1. Contract Conditions:
If you sign a contract before Christmas with conditions tied to a specific number of business days (e.g. 7 business days for finance approval), be aware that these timelines will pause during the non-business days. This can extend the expected timeframe, so plan accordingly to avoid surprises.
2. Cooling-Off Periods:
Cooling-off periods, typically 5 business days under Queensland law, are also impacted. If the cooling-off period overlaps with the holiday break, it will resume on January 2nd, 2025.
3. Settlement Dates:
Settlements scheduled for late December may need to be adjusted. Ensure your legal representative and financial institution are aligned to accommodate these timing rules.
Tips for a Smooth Transaction Over the Holidays
Plan Ahead: If you're close to finalising a property deal, aim to complete contract negotiations and condition arrangements well before December 25th.
Communicate Clearly: Work closely with your real estate agent, solicitor, and financial provider to ensure everyone is aware of the holiday implications.
Be Flexible: Understand that settlement dates may need to be adjusted to reflect the REIQ guidelines and public holiday schedules.
If you have any questions about how these rules may affect your property deal, reach out to your real estate agent or solicitor for tailored advice. Let’s make sure your property goals stay on track—whether you’re buying or selling this holiday season!
