Hypothetical situation - event happening after pre-settlement and before settlement

Purely hypothetical. But I like these what if scenarios.

What happens if house at pre-settlement inspection was fine, but some damages occurred in the day/s after but before settlement?

Perhaps something like, house burned down or storm knocked over a tree into the house or even something small like a broken window?

Can the buyer refuse to settle? Force the seller to fix the damages? Withhold payment?

If it's an insurance claim, who's insurance would cover it?

 

I always do my pre settlement inspections an hour or two before settlement for clients for this reason. I will at worst case do a drive by at 10-11am and with settlements happening about 12pm, can give a do not settle instruction to the purchasers rep.

its also why you take out insurance from day of contract.

 

You might just refuse to settle depending on the terms of the contract and what is wrong

 

...and if that occurs legal advice on these options would be VERY wise.

My mate bought a farm and the former owner left loads of rubbish behind at last minute. He arranged for retention sufficient to cover the stuff being dumped on his new land...Vendor couldnt be contacted in final few hours so solicitors agreed to this.After settlement he was asked to remove all the stuff within 24 hrs to avoid the retention being an actual charge. He threw his hands in the air and admitted he saw it all as rubbish....So my mate used his retention to pay for tip fees.....was all agreed by both solicitors.

 

Simikar happened to my wife's recent purchase. Just delayed settlement until the rubbish was removed.

 

In Victoria, generally the property must be uninhabitable in order for the purchaser to delay settlement without being penalised or defaulted.

 

Sometimes the mere threat of not settling on time is enough to get the vendor to fix minor issues.