WHAT HAPPENS TO CONTRACTS OVER CHRISTMAS 2024
It’s crazy to say that another year is almost over and the Christmas season will be upon us before we know it. With the approaching Christmas period, it is important to be aware of how the public holidays will affect your contract.
NEW SOUTH WALES AND VICTORIA
In New South Wales and Victoria, the definition of ‘Business Day’ is defined to include a day other than a Saturday or Sunday or a public holiday. Accordingly, in 2024/2025, unless the contract is varied by special condition:
- Wednesday 25, Thursday 26, Saturday 28 and Sunday 29 December 2024, and Wednesday 1 January 2025 are not business days
- Friday 27, Monday 30 and Tuesday 31 December 2024 are business days
Given most banking institutions and law firms/conveyancers are closed over the Christmas to New Year period, it is critical to review any due dates falling within this period prior to signing a contract to ensure you will still be able to meet your contractual obligations.
You may wish to include the following special condition:
‘Notwithstanding anything to the contrary, the parties agree that the definition of ‘business day’ is amended by adding ‘and except the days from 23 December 2024 to 3 January 2025 inclusive. Any notice served during the period 23 December 2024 to 3 January 2025 inclusive, will be deemed served on 6 January 2025. Any notice to complete served prior to 23 December 2024 which nominates a date for completion which is during the period 23 December 2024 to 3 January 2025 inclusive, will be deemed to nominate a date for completion which is 10 January 2025.’
QUEENSLAND
Conditions and settlements
In Queensland, the standard REIQ Contract defines a ‘Business Day’ to mean a day other than a Saturday or Sunday, a public holiday in the place for settlement, and a day in the period 27 to 31 December (inclusive). This means that if you have a condition or settlement falling due between Wednesday 25 December 2024 and Wednesday 1 January 2025, it will automatically move to the first business day after that period, which is Thursday 2 January 2025.
Please note that most REIQ contracts include a clause allowing settlement to be unilaterally extended by either party by up to 5 business days. As such, if you have a settlement falling close to Christmas and this extension is utilised, settlement may roll over early into next year. Please be mindful of this when signing a contract and deciding your moving arrangements.
We also note that, for off-the-plan contracts, many define business days to only include a Saturday or Sunday and public holidays. As such, if titles register close to Christmas, the seller may call for settlement over the Christmas period or early in the new year.
Cooling off period
The cooling off period is a 5-business day period that commences on the day you receive the fully signed contract (or if that day is not a business day, on the next business day).
Unlike condition due dates, where there is a pause during the period 27 December to 31 December, the cooling off period will continue to run on Friday 27, Monday 30 and Tuesday 31 December 2024.
Accordingly, if you sign a Contract between Christmas and New Year, cooling off will still run for the days which are not public holidays over that period. This is particularly important if you have buyer’s remorse and wish to terminate under the cooling off period.
