Why Queensland Property Buyers Can No Longer Wait Until Monday to Pay Deposits
A missed deposit deadline, even on a weekend, can place a buyer in default and put the entire transaction at risk.
If you have been using the updated REIQ contract, you may have noticed an important change to how deposit timing is treated. Under the First Edition REIQ contract, the rules around when a deposit is considered “paid” have shifted, and this is catching many buyers and agents off guard.
Key change
If the Reference Schedule states that a deposit is due on a specific day, the buyer must act on that exact day. This applies regardless of whether the due date falls on a weekend or public holiday.
Previously, there was a common understanding that if a deposit fell due on a non-business day, payment could be made on the next business day. That is no longer the case.
Under clause 2.1(3), a deposit is treated as paid on the due date if the buyer:
- initiates an electronic transfer on that day
- provides evidence of the transfer
- does not intentionally delay the payment
This applies even if the funds are received by the deposit holder one or two days later.
In practical terms, weekends and public holidays no longer extend the deadline.
Why this matters
Consider a contract signed on a Friday with the deposit due the following day. If that due date is Saturday, the buyer must transfer the deposit on Saturday and provide proof of payment. Waiting until Monday would place the buyer in default under clause 2.1(2)(a).
This is not a technical detail. It changes how buyers, agents and solicitors must manage deposit timing.
Risk of non-compliance
If the deposit is not paid on time, the seller may issue a notice giving the buyer two business days to remedy the breach. If the deposit has still not been received in the deposit holder’s account by 5:00 pm on the second business day, the buyer will be in default and the seller may terminate the contract.
This is a significant consequence arising from what is often a simple timing oversight.
Practical guidance for buyers
Buyers should review deposit timing carefully before signing a contract.
- Do not assume you can pay on the next business day
- Ensure your banking facilities are ready to transfer funds immediately
- Check daily transfer limits in advance
- Provide written proof of payment as soon as the transfer is made
Where possible, negotiate more practical timing. For example:
- “within two business days of the contract date” for the initial deposit
This provides a buffer to organise funds and reduces the risk of default.
It is also advisable to obtain pre-contract advice from your solicitor. A short review can confirm whether the deposit timing and other key terms are appropriate.
Practical guidance for agents
Agents should pay close attention to how deposit timing is set in the Reference Schedule.
- Avoid setting due dates on weekends or public holidays unless necessary
- Use business day timeframes where possible
- Ensure buyers understand their obligations at the time of signing
Clear and practical timing reduces unnecessary risk and helps transactions proceed smoothly.
The bottom line
This update aligns the REIQ contract with modern electronic payment practices. However, it removes the informal buffer that previously existed for weekends and public holidays.
The due date is now strictly the due date.
If the contract states the deposit is due on a particular day, the buyer must initiate payment on that day and provide evidence of the transfer.
Written by Catherine Hope