There have recently been important updates to the standard REIQ contracts for both residential and commercial purchases that specifically relate to deposit payments.

One of these changes recognises the growing use of electronic payment methods and aims to bring clarity and fairness to the process, aligning the contracts with the 21st century.

What are the changes to deposit direct debit and electronic payments in the REIQ contracts?

The new standard REIQ contract now expressly provides for paying the deposit by direct debit. Due to the time it can take for a direct debit to clear into a deposit holder’s bank account, a new clause introduces a change to when a deposit is considered paid when done electronically.

The changes state that if a deposit is paid electronically, it is deemed to be received by the Deposit Holder on the day the Buyer makes the payment as long as they:

1. provide the written evidence of payment (which can be the screenshot of the payment from the banking app or a receipt from the bank); and
2. do not do anything to defer payment.  

What happens if the deposit isn’t received on time?

The recent changes also introduce a small grace period if the Buyer does not pay the deposit by the due date. The Seller can no longer immediately terminate the contract of sale, however, they must now provide notice to the Buyer to complete the payment within the next two business days after the notice that the deposit has not been received is issued.

If the Buyer’s payment is not received into the deposit holder’s account within two business days after the Seller has provided the notice of non-receipt, the Seller may then terminate the contract and forfeit any deposit the buyer has paid to date.

This change adds significant flexibility to deposit due dates, reflecting the realities of the digital era we live in. Processing times for electronic payments can vary, and this clause ensures Buyers are not unfairly penalised for delays beyond their control. At the same time, it provides Sellers with a clear process to recover overdue deposits as it allows buyers more time to get their funds sorted

One of the other changes include deposits are now due on the weekend.

Are deposits now due on weekends? 

Under the updated REIQ contract, deposits are now due on weekends and public holidays if the due date falls on those days. 

In previous versions of the REIQ contract, all condition due dates, including deposits, finance, and settlement, that fell on a weekend or public holiday would automatically revert to the next business day. 

The updated contract changes this rule for deposits only. All other condition due dates still revert to the next business day, but deposit due dates must now be met on the exact date stated in the contract, even if it falls on a weekend or public holiday. 

This change means Buyers must plan ahead to ensure deposits are paid on time. 

When drafting or reviewing your contract, we can assist to ensure that the deposit due date falls on a business day, helping to avoid unnecessary stress and potential breaches of contract. 

Note that provided the buyer makes the electronic funds transfer and otherwise complies with the other requirements under the contract, the deposit is taken to have been received by the deposit holder on that date.

Another change: meaning of ‘pay’ in property contracts. 

Novadeck Pty Ltd v CK & PT Property Holdings Pty Ltd [2025] QCA 170 

In a significant decision for property transactions in Queensland, the Court of Appeal in Novadeck Pty Ltd v CK & PT Property Holdings Pty Ltd [2025] QCA 170 addressed the interpretation of the term “pay” in a property sale contract. 

In this case, the contract stipulated that the Buyer was to pay the balance deposit upon satisfaction of the finance condition. The Buyer instructed their bank to transfer the funds on the due date; however, the deposit holder did not receive the funds until after 5:00 PM that day. The Seller then terminated the contract, asserting that the deposit was not paid on time. 

The court ruled that the term “pay” requires the actual receipt of funds by the deposit holder, not merely the initiation of the transfer. Therefore, the Buyer’s instruction to the bank did not constitute payment under the contract. The court also rejected the notion of an implied term deeming the deposit paid upon initiation of an electronic funds transfer (EFT). Note: such provisions are typically included in later versions of the REIQ contract and were not present in this agreement. 

This decision is important for property contracts, including “off-the-plan” property contracts, and underscores the importance of ensuring deposit payments are received by the deposit holder on the specified due date. Buyers and their legal representatives should be vigilant in confirming that funds have cleared into the correct account to avoid potential breaches of contract and termination by the Seller. 

We always recommend that the payment of the deposit is made at least two days before the due date, in case there are any issues with the Bank. Alternatively, we recommend that if you have conditions in the contract such as finance or building and pest, that the deposit due dates are payable minimum two business days after these conditions are satisfied.

Note that usually off-the-plan contracts do not use the standard REIQ contracts, which means that the funds for a deposit must be clear funds in the deposit holder’s account, not just transferred on that day.

We ensure we always remind you of the deposit date due payments in advance, so you have ample time to ensure your funds are ready to go.

If you have any questions regarding your deposit or any of your property law needs, please contact our team today.