Insuring Before Property Settlement

Avoid settling on a damaged property.

It's a common question when purchasing a property. Should you take out insurance on the property before settlement?

Well, there are sound legal reasons for this, so keep watching as in this video John Gallagher from Argon Law in Queensland will explain more.

Always ensure you seek professional advice for your specific circumstances, the above is intended to be general in nature.

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In short, I can confirm that as soon as you sign a contract to purchase a property you do have a legal risk worth insuring against, regardless of what the contract says.

The risk is that the property is damaged between the time you sign the contract and the time for settlement.

The seller isn’t necessarily obliged to repair that damage or to insure for it.

And even if the seller had such an obligation, should you trust them to do it?

The Qld Property Law Act does entitle a buyer to terminate a contract if a dwelling is destroyed or damaged before settlement so as to be “unfit for occupation”, but in less extreme circumstances, or where the damage is not to a dwelling, you could face the prospect of having to settle on the purchase of a damaged property.

Even if you did have the right to terminate due to the damage, if you have the benefit of insurance, the property may remain a good investment for you and you could still chose to proceed.

If you have any queries about insuring your property before settlement or any other aspect of property law then please contact us on 07 5443 9988 or [email protected].

Argon Law is a Sunshine Coast law firm based in Maroochydore. We are commercial lawyers and property lawyers and are eager to assist you in any way we can.