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Insurance and Liability

Discussion in 'Legal Issues' started by eng, 17th Oct, 2015.

  1. eng

    eng Well-Known Member

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    20th Jun, 2015
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    Location:
    Macarthur, NSW
    After the contract was signed for an IP in Brisbane, I was informed that I needed to arrange landlords and home insurance as I was now liable for the property. It's a minor point, but I'm more interested in the logic and reasoning behind this. This seems particularly odd to me as the owner is still living in the property and we're not expecting to settle until the 1-2nd week of November.
    Is this a normal part of the settlement process? Should I have included a condition in the contract for insurance to take effect after the settlement?
     
  2. mja

    mja Well-Known Member

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    Location:
    Sydney
    This is normal for Queensland property purchases.
     
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  3. D.T.

    D.T. Adelaide Property Manager Business Member

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    Adelaide, SA
    Yep , in QLD and SA you're responsible for the property from when contracts are signed rather than from settlement.

    As for condition in the contract - No. The buyer is still responsible for the property.
     
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  4. Scott No Mates

    Scott No Mates Well-Known Member

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    Qld is not normal, it's a different country as they're in a different timezone, the 1960's. ;)
     
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  5. Ed Barton

    Ed Barton Well-Known Member

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    Yes, we're currently 23 hours ahead of Sydney and Melbourne.
     
  6. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    Location:
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    In the event the vendor allows insurance to lapse you may have a contract to acquire a pile of charred timber on a slab on land. Its often prudent to ensure that YOU insure your expected acquisition to avoid reliance upon the vendor. I know I would rather accept title to the land a cheque for the replacement value of the home. (My insurer tells me they will ONLY pay if the legal owner is uninsured. They wont both pay. The policy is intended to cover your LOSS...Wont always be the whole value) They say you have a financial interest in the property and DO accept claims but rules limit the claims.

    30% of properties are uninsured. (Fun fact that always comes up at bush fire season)

    Its like not taking out travel insurance until the day you fly. Between date you book and fly is also a risk. Perhaps bigger