What is Included in Standard Contract Conditions?

What is Included in Standard Contract Conditions?

When you’re buying or selling property in Queensland, you’ll come across something called an REIQ contract. It’s the standard contract used for residential property sales across the state, prepared by the Real Estate Institute of Queensland and the Queensland Law Society.

The contract covers all the basics: who’s buying, who’s selling, what price, when settlement occurs, and what conditions must be met along the way. Most of it is pre-written, which means the same rules apply to nearly every transaction. That’s helpful because it keeps things consistent. But it also means you need to understand what you’re agreeing to before you sign.

Here’s a breakdown of what’s actually in the contract and what the key conditions mean for you.

A Quick Summary

• The REIQ contract has two parts: the Reference Schedule (your sale details) and the Standard Terms (the legal rules)
• Key conditions cover finance, building and pest inspections, pool safety, insurance, and settlement
• Since 1 August 2025, sellers must provide disclosure documents before the buyer signs
• Special conditions can be added if the standard terms don’t cover your situation
• It can be helpful to have a conveyancer or solicitor look over the contract before you sign

How the Contract is Laid Out

The REIQ contract is split into two sections. 

1. The Reference Schedule

This is where all the specific details of your sale go: the names of the buyer and seller, the property address, the purchase price, the deposit, the settlement date, and any conditions you’ve agreed to (like needing finance approval or a building inspection).

2. The Standard Terms

These are the legal clauses that explain how everything works. They cover topics such as when you need insurance, what happens if someone misses a deadline, and how settlements are handled. These terms are the same in every REIQ contract, so once you understand them, you’ll know what to expect in future transactions too.

Your conveyancer in Cairns will go through both parts with you and make sure everything’s filled in correctly.

What Conditions are Included in Standard Contracts?

The Finance Condition

Most buyers need a loan to purchase a property, and the finance condition is what protects you if that loan doesn’t come through.

For the clause to work, three things need to be filled in: the amount you’re borrowing, the name of your lender, and the date by which you need approval. If any of those are left blank, the condition won’t apply, and you could be stuck with a contract even if your loan falls over.

You do need to make a genuine effort to get your finances sorted. But if you’ve done everything right and the loan still doesn’t come through in time, you can terminate the contract and get your deposit back.

Building and Pest Inspection Condition

This condition gives you the chance to have a professional inspect the property before you’re locked in. A building inspector inspects the home’s structure, while a pest inspector checks for pests such as termites. Most buyers get a combined report.

If the inspection turns up something serious and you’re not happy with the result, you can terminate the contract. You just need to let the seller know in writing before 5 pm on the inspection date.

There’s a catch, though. You have to be “acting reasonably.” That means you can’t pull out over a squeaky door or a crack in the paint. The condition is there to protect you from major problems, not minor wear and tear. If you’re unsure whether an issue is serious enough, a buyer’s solicitor can help you work out where you stand.

Pool Safety

If the property has a swimming pool, there are additional safety requirements. The seller usually needs to hand over a valid pool safety certificate at settlement. If there isn’t one, the contract will set out what happens next, which might include you getting a certificate at the seller’s expense or having the right to terminate.

Pool issues can delay settlement, so it’s worth checking the status early.

Risk and Insurance

This is one of the clauses that catches buyers off guard is the risk clause. Under the standard REIQ contract, the property is at the buyer’s risk from 5 pm on the first business day after the contract date. That’s not settlement day. It’s usually the day after you sign.

This means if the property is damaged by fire, storm, or another event before settlement, you might still have to complete the purchase. To protect yourself, you should arrange building insurance as soon as you sign the contract. Most lenders will require this as a condition of your loan anyway.

The Cooling-Off Period

Queensland law gives buyers a cooling-off period of five business days after signing a residential contract. During that time, you can change your mind and walk away for any reason. You’ll pay a 0.25% penalty on the purchase price, but you won’t be forced to proceed with the sale.

The cooling-off period doesn’t apply if you buy at auction or waive it. It’s a useful safety net, but it’s no substitute for getting proper advice before you sign. A buyer’s conveyancer can tell you whether it makes sense to rely on it in your situation.

The “Time is of the Essence” Clause

The REIQ contract includes a clause that says “time is of the essence.” That simply means that deadlines are strict. If you miss your finance or inspection date, you could lose your rights under that condition, or, worse, the other party might be able to terminate the contract.

Keep on top of your dates, set reminders, and if something’s going to be late, talk to your conveyancer straight away.

Seller Disclosure Requirements

Since 1 August 2025, Queensland has a new rule that requires sellers to provide certain documents to the buyer before the buyer signs the contract. This is called the seller disclosure regime, and it’s set out in the Property Law Act 2023.

Sellers now need to provide buyers with a Form 2 Seller Disclosure Statement, along with the prescribed certificates. If the documents aren’t provided properly, or if something important is left out, the buyer may have the right to walk away before settlement.

If you’re selling, a seller’s conveyancer can help you get these documents right from the start.

Special Conditions

Sometimes the standard terms don’t cover everything. That’s where special conditions come in.

These are additional clauses added to the contract to address specific situations. For example, you might want to make the purchase conditional on selling your current home first. Or you might want early access to the property to start renovations before settlement. Or there might be something about the property that needs to be fixed before you take over.

Common examples include:

• Making the contract subject to the sale of another property
• Allowing early access for renovations
• Requiring specific repairs before settlement
• Including a due diligence clause for additional searches. 

Special conditions need to be carefully worded to be enforceable. In Queensland, real estate agents aren’t allowed to write them, so you’ll need a trustworthy solicitor in Cairns to draft them for you.

Why It’s Worth Getting the Contract Reviewed

The REIQ contract is well put together, but it’s not designed for individual situations. Sellers can delete clauses, special conditions can shift the risk, and if you don’t know what to look for, you might not realise until it’s too late.

Before you sign anything, it’s worth having a conveyancer or solicitor review it. They can explain what each clause means, point out anything unusual, and make sure the contract actually protects you. It’s a small investment that can save a lot of stress later on.

Disclaimer: This blog is intended for informational purposes only and does not constitute legal advice. For guidance tailored to your specific circumstances, please consult a qualified legal representative.