Time is of the Essence: Why Every Deadline in Your QLD Contract is Absolute
Plain English Definition
"Time is of the Essence" is a legal doctrine that makes every date and deadline in a contract strictly binding. In Queensland REIQ contracts, this clause means that failing to meet any contractual deadline — finance approval date, settlement date, or condition notification date — is not a minor inconvenience. It is a breach of contract, and the other party has the right to treat the contract as terminated and claim damages.
The Danger Zone: Buyer's Risk
This is the clause that turns paperwork delays into financial disasters:
- Settlement date — Failing to have your funds ready and settlement not completing on the agreed date puts you immediately in default.
- Finance condition date — If you don't notify the seller about finance approval or termination before the deadline, the clause expires and you may be bound unconditionally.
- Bank delays — Banks frequently cause settlement delays. As a buyer, this is still your obligation. You need a solicitor monitoring the timeline.
- PEXA and electronic settlement — Even a 30-minute delay in an electronic settlement (PEXA) due to technical issues falls under this clause. Sellers can serve a Notice to Complete immediately.
- Notice to Complete — After a breach, the seller can serve a Notice to Complete giving you typically 10 additional business days to settle. If you still fail — full default consequences apply.
Real-Life QLD Scenario
James was purchasing an investment property in Cairns for $480,000. His loan was approved, but his lender's settlement team made an internal error and failed to fund on settlement day. The seller's solicitor served a Notice to Complete that evening. James had 10 business days to resolve the funding issue. The lender took 12 days to rectify the error. James defaulted. The seller terminated and retained his $48,000 deposit.