All Topics / Help Needed! / No builders insurance??

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  • Profile photo of grumpsalotgrumpsalot
    Member
    @grumpsalot
    Join Date: 2010
    Post Count: 3
    September 27, 2010 - 3:58 am

    Hi again… Thanks for your advice with my last post, hoping you can once again help me out.

    I have signed the contract on the new proprty (in SA) and settlement is due on 8th October. Today, my conveyancer called to advice that the builders insurance (warranty insurance) has still not come through and will possibly take another 1-2 months. It is a brand new property built by a licensed builder (son of the owners).

    I have been given the option of delaying settlement until this comes through or keeping the settlement as is but having some money withheld by the conveyancer until the insurance comes through to ensure it happens.

    I am not sure on the implications of each option and was wondering if anyone can provide some assistance.

    Thanks in advance.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    September 27, 2010 - 5:34 am

    This is why it is a good idea to use a solicitor rather than a conveyancer – so you can get legal advice as well.

    Are you talking about a contract for the sale of land or a home/land package type deal. If just land you can settle and then find another builder. Without the builder having insurance you probably won't be able to get finance for the construction part – if you need it.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of grumpsalotgrumpsalot
    Member
    @grumpsalot
    Join Date: 2010
    Post Count: 3
    September 27, 2010 - 6:18 am

    The house has already been completely built – so house/land sale. The contract of sale has been signed, with the contract stating that the insurance information as "not yet supplied".

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    September 27, 2010 - 6:46 am

    I would suggest you speak to your lawyer. Its probably not a good idea to exchange without them having insurance. If you have already exchanged, was the insurance a condition of the contract? You may be locked in anyway.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

Viewing 4 posts - 1 through 4 (of 4 total)

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