Sellers Conveyancing Guide: Breach of Contract

In Queensland, once the initial contract negotiations have been successfully completed and the essential terms of the Contract agreed upon, both the Buyer and the Seller formally sign a Contract. One of the Contracts that the parties in Queensland commonly use is the REIQ Sales Contract (Real Estate Institute of Queensland Ltd).

Who prepares the Contract of Sale in Qld?

The type of REIQ sales Contract will vary depending on whether the property is a standalone house and land or belongs to a Community Title Scheme and is usually drafted by the Seller's appointed representative. This representative is typically a professional, such as a conveyancer Solicitor or a real estate agent, who handles the preparation of the contract to ensure all necessary legal and property-specific details are accurately included. Contact River City Conveyancing for a contract review.

According to the Queensland Law Society:
“Conveyancing is the term for transferring ownership of property from a Seller to a Buyer. Solicitors and real estate agents can assist you with your conveyance."

Conveyancing in Queensland is not a simple process and often involves a number of critically timed steps which must be carefully managed to ensure that a party is able to meet their contractual and statutory requirements.

Although you do not need to engage a Solicitor for conveyancing in Queensland most people elect to because they are not familiar with the terms of the contract or conveyancing process and do not wish to run the risk of getting it wrong. As the Queensland Law Society states, “You have the choice of doing the conveyance yourself, but you do so at your own risk.”

If a party to a Contract does not adhere to the terms of the Contract they may breach the Contract and become liable to action from an aggrieved party who may make a claim against them.

Standard Steps to Make a Conveyancing Claim:

1. Negotiation and Mediation
Parties are urged to pursue negotiation and mediation as the first steps before considering legal action. These approaches may result in mutually agreeable solutions, avoiding the expense and time associated with court proceedings.

2. Initiating Legal Proceedings
In the circumstance that negotiations do not result in a resolution, the injured party can opt to take legal action. The process of initiating a legal claim requires filing a 'statement of claim’ that explains the breach in detail and describes the remedies sought.

What is the statute of limitations for a breach of conveyancing house and land contract in Queensland?

In Queensland, the Limitation of Actions Act establishes specific time frames within which legal actions must be commenced. For breach of contract cases, the standard limitation period is typically six years from the date the breach occurred however it is
essential that you check with a solicitor regarding any potential claim.

What are the common Types of Breach of REIQ Contract in Queensland?

There are a few common types of breaches defined by Queensland Law that break the terms of an REIQ Contract.

The first is a serious or material breach whereby the Seller is significantly deprived of the benefits that they were due to receive under the contract.

A minor breach is therefore considered to be a partial breach in that it doesn’t entirely violate the terms of the contract but there remains a lesser failure to satisfy the contractual obligations for which the Seller may seek remedy for.

The third breach is called an Anticipatory breach and involves the offending party declaring an intention to the breach the contract before they are required to perform their contractual duties under the Contract. In this case the Seller may immediately
seek remediation.

Not all breaches are the same and some can have serious consequences for the party at fault.

Why do you need a conveyancer Solicitor to oversee your property conveyance?

Property transactions encompass complex legal procedures that can be difficult to manage independently. An experienced Conveyancing Solicitor, who has expertise in property law and statutory regulations and laws, can expertly oversee the
necessary legal aspects of your purchase, ensuring that everything is handled accurately and in accordance with Queensland’s legal requirements.

Contact the River City Conveyancing team today for individually tailored conveyancing Solicitor services. Phone 07 3013 2300 or email reception@rivercityconveyancing.com.au

*This is general advice only and to obtain specific legal advice you must engage with a legal representative.