New REIQ Contract Released Alongside Rental Law Reform
On 7 June 2024, alongside the major reform of Queensland’s residential tenancy laws, the Real Estate Institute of Queensland (REIQ) and the Queensland Law Society released the latest version of the standard REIQ Residential Contract. This updated contract, widely used for the sale of residential properties—including houses, units, and investment properties—contains new disclosure obligations that carry significant implications for real estate agents, landlords, property investors, and developers.
These changes represent a shift towards a more transparent and buyer-protective framework, signalling Queensland’s gradual alignment with the seller disclosure regimes already in place in New South Wales and Victoria.
Below are the five key changes introduced in the new REIQ contract that vendors must comply with, especially where a property is subject to an existing or previous tenancy.
1. Disclosure of Tenancy Details and Last Rent Increase
Sellers are now required to disclose all current and previous tenancy agreements, along with the date of the most recent rent increase. This information is crucial for buyers, especially investors, who rely on rental income and tenancy conditions to assess the value and risk of the asset.
2. Warranty on Accuracy of Rental Information
The new contract includes a formal warranty from the seller confirming the accuracy of the rental information disclosed. This means sellers are legally responsible for ensuring the information provided is true, complete, and up to date.
3. Buyer Entitlement to Compensation
If the rental information is found to be inaccurate, buyers have the right to seek compensation from the seller. This heightens the legal risk for vendors and agents who fail to conduct due diligence when preparing the contract.
4. Obligation to Provide Evidence of Last Rent Increase at Settlement
Sellers must also provide written evidence of the most recent rental increase at settlement, such as a rent variation notice or updated lease agreement. Failure to produce such documentation may lead to a breach of the contract.
5. Buyer’s Right to Terminate If Evidence Is Not Provided
Crucially, if the seller fails to provide evidence of the last rent increase by settlement, the buyer has the legal right to terminate the contract and recover any amounts paid under the agreement.
Queensland Is Entering a New Era of Property Law Reform
The revised REIQ contract is widely seen as the first step in Queensland’s transition to a formal seller disclosure regime, bringing it closer in line with the more structured legal requirements already seen in NSW and Victoria. In the near future, sellers in Queensland may be expected to supply a comprehensive legal disclosure pack that includes title searches, building records, environmental notices, and tenancy documentation before the contract is signed.
ENSURE LEGAL – Guiding You Through Legal Change, Contract by Contract
In this evolving legal landscape, a single overlooked disclosure obligation can carry significant financial and legal consequences. At ENSURE LEGAL, we specialise in Queensland property and tenancy law and have deep experience advising landlords, agents, and developers on contract compliance, rental disclosures, and risk mitigation.
If you have questions about the new REIQ contract, rental disclosure obligations, or how these changes affect your transactions, contact ENSURE LEGAL today. We are here to provide clear, actionable legal advice—so that every deal is secure and fully compliant.
