Why "Monday is fine" for deposit payments no longer applies. Under the new REIQ contract, if the date for a deposit being due is Sunday - it's due Sunday.

A missed deposit deadline (even on a weekend) could trigger a default, and risk the whole deal...

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Hi everybody - George Sourris, Empire Legal.

Today's topic: Why QLD property buyers can no longer wait to Monday to pay deposits!

If you've been using the new REIQ contract since its release, you might have noticed a subtle but important shift in how deposit timing works. Under the First Edition REIQ contract, the rules around when a deposit is "paid" have changed, and it's catching people off guard.

In short, if the Reference Schedule says the deposit is due on a certain day, the buyer must pay it on that day. Even if it's a Saturday, a Sunday, or a public holiday, there's no more waiting until the next business day. That's because of how clause 2.1(3) now reads.

What's changed?

In the previous versions of the REIQ contract, there was a general understanding that if a deposit fell due on a weekend or public holiday, it could be paid on the next business day, it would roll over. Well, that assumption no longer holds. The new clause 2.1(3) sets out that if a buyer initiates an electronic transfer of the deposit on the due date, provides evidence of that transfer and doesn't intentionally defer the payment, then the deposit is taken as received on the same day, even if it actually lands in the deposit holder's account a day or two later.

That means that the clock doesn't stop for weekends, bank closures, or public holidays. Scary stuff, right? It's a bit of a change. A lot of people don't even know about this. If the due date is Sunday, the buyer must make the transfer on a Sunday. At a first glance, this might sound like a technicality, but in practice it changes how buyers, agents and conveyancers need to handle deposits.

For example, if a contract is signed on a Friday and the Reference Schedule says deposit due the next day, the buyer can no longer wait until Monday to make the payment. They must transfer it by the Saturday, and provide written proof to the deposit holder that the transfer has occurred. If they don't, they risk being in default under clause 2.1(2)(a) of the contract.

For agents, that means the timing written into the Reference Schedule now matters more than ever. Setting a deposit due date that falls on a weekend might sound harmless, but it could put a buyer in breach before they've even unpacked their banking app.

The risk of getting it wrong.

If the buyer doesn't pay the deposit on time, the seller may issue a notice giving them two business days to fix it. But if the payment still hasn't been received to the deposit holder's account by 5:00 PM on that second business day, the buyer will be in default and the seller may be entitled to terminate.

That's a serious outcome over what might seem like a minor timing or procedural issue. It is easy to imagine the scenario: a buyer plans to pay Monday because the due date fell on a Sunday, not realising that Monday morning is already too late under the new contract wording.

Practical tips for buyers.

If you're a buyer, this is a clause you'll want to keep a close eye on before signing. The default position in most contracts is that the initial deposit is due on the date the buyer signs, which often means the same day the seller signs. That can be risky if the contract is executed late in the day or on a Friday.

You're entitled to negotiate this timing. For example, you could request the deposit be due to business days after the contract date. This gives you a small but important time buffer to move funds, confirm bank limits, and avoid accidental defaults. The same goes for the balance deposit, if applicable, ensuring the timing is realistic, and doesn't fall on a weekend or public holiday. And before you sign, it's always wise to seek pre-contract advice from your solicitor. They can quickly review the Reference Schedule and confirm whether deposit, timing, special conditions and other key terms are in your best interest.

A pre-contract review could save you losing the property, your deposit, and the risk of being sued by the seller.

Practical advice for agents.

This change means everybody involved needs to tighten up how deposit timing is managed. For agents, it's worth reviewing how you fill out the Reference Schedule. Avoid setting a due date that falls on a weekend or a public holiday unless there's a good reason. A simple "within two business days of the contract date" can prevent unnecessary defaults and keep your deal alive.

For buyers, make the deposit as soon as the contract is signed, or at least have internet banking ready to go that same day. If the deposit is due on a Saturday or a Sunday or a public holiday, initiate the transfer that day and provide written proof to the deposit holder ASAP that same day. Also, check your daily transfer limits allow you to send the funds required.

Nothing is worse than the stress of realising you have a daily limit and the banks are closed.

The bottom line.

This change to clause 2.1(3) might seem small, but it's a practical shift that brings REIQ contracts in line with how most transactions now occur - electronically and instantly. But it also means the safety net of the next business day is gone.

The due date is the due date. So, whether it's a Tuesday or a Sunday, if the contract says, deposit due today, the buyer must make sure it's done that day, with proof of payment sent.

At Empire Legal, we're already seeing confusion around this clause. Our advice is simple. Get pre-contract advice, set realistic deposit dates, communicate early with buyers and never assume a weekend buys you extra time.

That's it for this week, guys. I bet you didn't know that one. Tricky little one they haven't really publicised. Protect your deal. Add in the two business day clause and everybody wins.

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See you next week.

Ladies and gentlemen, please keep in mind that all advice is general in nature and does not constitute legal advice. This is authorised by George Sourris, Empire Legal, Gold Coast, Queensland, Australia.

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Ladies and gentlemen, please keep in mind that all advice is general in nature and does not constitute legal advice. This is authorised by George Sourris, Empire Legal, Brisbane, Queensland, Australia.

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