Changes to REIQ House & Land and CTS Contracts - June 2024
Newsflash: The REIQ House & Land and CTS Contracts have been updated.
Whilst any contracts prepared on previous versions are still binding, it is always recommended to use the most recent updated contract to take advantage of the new terms:
The House & Land Contract is now 19th Edition; and
The CTS Contract is 15th Edition.
The changes to the contracts have been minimal and have been amended to reflect changes to the Residential Tenancies and Rooming Accommodation Act 2008.
That legislation was updated on 6 June to state that rent amounts cannot be increased for a residential property for 12 months, even if there is a new lease in place. For example:
If rent increased on 1 January, 2024, even if that tenant vacates and a new tenant signs a Lease on 1 June, the rent cannot increase again until 1 January, 2025.
The new contracts include an updated rental tenancy section to note when the last increase was undertaken. This is to be included even if there is currently no tenant in the property. For example:
A tenant signed a Lease on 1 January, 2024 and vacated the property on 1 June, 2024. A contract for sale was signed on 5 June, 2024. You still need to disclose to the Buyer when the last increase was done, as they might need this information to be able to be able to rent the property further themselves.
If the client provides incorrect information, the Buyer maybe in a position to claim compensation from the Seller.
The new contract also includes a new requirement that at settlement the seller must then also provide documentation confirming when the last increase was undertaken prior to settlement – this would typically just be a copy of the Lease (which the managing agent will have).
If you have any questions about the new contracts, don’t hesitate to contact our team for advice.