From 1 January 2022, changes were made to smoke alarm legislation for residential properties being sold within Queensland. The REIQ Contract has been amended to add a new clause 7.8 to impose a contractual obligation on Sellers to comply with the new legislation prior to the settlement date.
What does this mean for Sellers?
Sellers must install compliant smoke alarms as per the new legislation prior to settlement. If compliant smoke alarms are not installed by the settlement date, the Buyer will be entitled to an adjustment of 0.15% of the Purchase Price payable at settlement.
What does this mean for Buyers?
Buyers are advised to check compliance prior to settlement. The REIQ Contract has been amended to add a new clause 8.2 to allow a Buyer an additional right of access to the property to ensure complaint smoke alarms have been installed. A Buyer should take a qualified electrician or smoke alarm expert with them to this inspection. If compliant smoke alarms are not installed, a Buyer will need to claim the adjustment of 0.15% at settlement. This is a Buyers only remedy, meaning the contract may not be terminated or damages claimed following settlement.
Buyers should be aware if they buy a property with non-compliant smoke alarms, they will be responsible for installing the complaint smoke alarms immediately following settlement and will be subject to penalties if they fail to do so.
If you are buying or selling property in Queensland, get in touch with Legali to ensure your contract complies with the updates.
Writer: Monique Jeffrey of Legali
