I have two properties under contract in W A and would like to know when the purchaser is required to take out insurance on the property?
In QLD it is on the date that the contract is signed but I am unsure about W A ? Does anyone have any information on this?Regards getahead
Hi Getahead,
Responsibility for insuring the property after the initial contracts have been signed varies from state to state. In New South Wales, Victoria, Western Australia, South Australia and Tasmania the onus is on the seller to insure the property until settlement. In Queensland and the Australian Capital Territory the buyer is responsible for home and contents until settlement. Your solicitor/conveyancer should advise you about this.
Source realestate.com
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Thanks for the reply Derek.
I thought that WA was different from Qld but wasn’t sure.Thanks getahead
While the onus may be on the seller until settlement, our settlement agent has advised us to take it out prior anyway as we have an “interest” in the property. There’s a previous thread on this too, do a search under insurance and see what comes up.
Once you have had an offer accepted – whether it be an exchange of contracts or some other mechanism whereby your sale has gone unconditional, you now have a legal interest in that property.
Protect yourself (minimise another risk) by taking out the insurance. A cover note is all you need.
Cheers,
Aceyducey
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