QLD extension rights at a glance
| Question | Queensland |
|---|---|
| Who can extend? | Either party — buyer or seller |
| How long? | Up to five business days in total |
| By when must notice be given? | Any time up to 4pm AEST on the settlement date |
| Is a reason needed? | No — it can be exercised for any reason, by either party |
| Longer than five days? | Requires the other party's agreement |
| If you still can't settle | The other party may terminate or enforce the contract, and may claim compensation |
The settlement date is strict. "Settlement date" is a legal term meaning you must perform your obligations strictly by the due date. Subject to any right of extension a party is entitled to exercise, each party must be able to settle by 4pm AEST on the settlement date; otherwise the other party may either terminate or seek to enforce the contract. In both cases there may also be a claim for compensation.
The unilateral 5-business-day extension right (QLD-specific). The Standard Contract terms give both parties a right to extend the settlement date by a period of up to five business days without requiring agreement by the other party. A party wishing to exercise this right may give notice of the extension at any time up to 4pm on the settlement date. Although this extension right was included primarily to protect Buyers against the potentially unfair results of being unable to settle due to financier delays, it is available to both parties and may be exercised for any reason. You should therefore not assume settlement will take place on the nominated settlement date. The right may only be used to extend the settlement date; if you cannot settle for any reason (e.g. financier delay), it is appropriate to exercise the extension to avoid the consequences of failing to settle on time. The right is limited to a total period of five business days — any further extension requires the agreement of the other party.
What counts as a business day. If anything is to be done on a day that is not a business day, it must be done on the next business day. Business days are days other than: (1) any public holiday in the Place for Settlement as stated in the Reference Schedule to the contract for settlement (including if using PEXA) — if there is no locality stated in the Reference Schedule, this may not apply; (2) any day in the period 27 December to 31 December (inclusive); and (3) Saturdays and Sundays. This date calculation does not apply to statutory dates (e.g. the statutory cooling-off period). Because most transactions use electronic conveyancing for settlement, if the settlement date falls on a day on which both the Sydney and Melbourne offices of the Reserve Bank of Australia are closed, the settlement date is taken to be the next business day.