Here's an article we wrote back in April 2020 at the onset of the pandemic.

The Coronavirus' ongoing and overall impact goes without saying, but in relation to Queensland's standard REIQ (and other) contracts that don't envisage or deal specifically with the ramifications of a pandemic, or even an epidemic, they are leaving the parties in worrying and uncertain positions in relation to their property transaction.

Can a contract be delayed or put on hold until things have retuned to normal? Can a buyer pull-out of contract because they have lost their job as a result of the pandemic or the Government lockdowns of certain industries means they can no longer afford a loan?

In current REIQ contracts, standard condition clause 6.2(8) deals with a Delay Event that allows suspension of time to settle, but it does not include "Pandemic" in its defined events. It does include "compliance with any lawful direction or order by a Government Agency".

If you have a current contract on foot, it is important you seek legal advice on the specifics of your contact and circumstances before taking any action to delay or otherwise put an end to your contract, or to accept a parties request to suspend, amend or terminate a contract due to the coronavirus.

If either party wrongfully exercises a right under a contract, it can leave them open to action for repudiation or breach of contract which can incur significant costs and penalties.

Other types of contracts may have other clauses that deal with an event such as Coronavirus such as a 'force majeure' clause that brings an end to a contract, and there is the legal doctrine of 'frustration' that may result in a contract being able to be ended.

If a finance clause is still in effect and a party has been impacted financially by COVID-19, then that finance clause may be able to be used to bring an end to a contract.

In new contracts you are about to enter into, it's vitally important that special conditions are included that deal with this event before they are signed by the parties, so talk to us first.

Likewise, the standard finance and building and pest inspection conditions need considering, as there are delays across the board in getting loans approved and contractors out to inspect the property. Extending the usual timeframes for satisfaction of these other standard clauses would be prudent in the circumstances.

Because the COVID-19 pandemic is a unique event that is still evolving and has not yet tested many areas of the law, please make sure you seek legal advice if you are affected before taking any action to suspend or terminate a contract, or before you enter into a new contract.

Well, nearly 12 months on and the observations were accurate.

What we have learned since is that:

• solicitors and estate agents quickly adapted to include pandemic clauses in contracts to deal with lock-downs and delays;
• parties were, for the most part, obliging with the early delays rather than looking to terminate contracts;
• e-Conveyancing came into its own;
• government and lender initiatives helped avoid (or at least delay - it remains to be seen) any major impacts of re-possessions and forced sales;
• time frames for getting anything done with nearly any business blew right out; and
• toilet paper is a commodity.

Today, getting loan approvals and documents finalised still takes a lot longer and is a real issue, so we are adapting to that by recommending longer finance clause and settlement times than the once-usual periods.

You can help your property transaction proceed smoothly by making sure you attend to any requirements, either as a buyer or seller, as soon as possible and without any delays, and get on to your lender or broker early to make sure you understand any particular requirements they may have or any problems they may be experiencing.

Your Settlers' conveyancer will discuss these issues with you to make sure all goes as smoothly as possible.