Insurance risk

In Queensland, if you enter a standard contract of sale for the purchase of a house, a unit or vacant land (‘Contract of Sale’), which in respect of houses and land, the ‘REIQ Contract for Houses and Residential Land (14th Ed)’ is most commonly used, and in respect of units, the ‘REIQ Contract for Residential Lots in a Community Titles Scheme (10th Ed)’ is currently most popular, according to clause 8.1 of the ‘Terms of Contract’ (which are the standard terms and conditions of the Contract of Sale, usually found towards the back of the document) the property is at the Buyer’s risk from 5:00pm on the first Business Day after the Contract Date.

This is an important factor to be mindful of when purchasing a Property because the Buyer is unlikely to take possession of the Property until Settlement Date (which may not take place 2-4 weeks, if not more, after the Contract Date). During this period, the Buyer has to carry the risk of any damage being suffered by the Property, despite the fact that the Seller must use the Property reasonably until Settlement Date.

The Contract Date and Settlement Date are recorded in the Reference Schedule of the Contract of Sale, save that the Settlement Date may be varied by the consent of parties if necessary. Generally, it is wise to make enquiries about the cost and availability of insurance cover for the Property, contents and public liability (or any other insurance cover that your insurance broker or home insurance company may advise) prior to entering the Contract of Sale, as insurance cover can be expensive.

If you do not arrange for appropriate insurance cover at the right time, and the Property is damaged between the Contract Date and Settlement, you may have to wear the cost any damage and still settle in accordance with the Contract of Sale.

This commentary is of a general nature only, containing nothing more than some general information for the reader. It is not intended to be legal advice, nor cannot it be relied upon as legal advice. To this end, please read our Website Terms including the disclaimer contained therein carefully. Laws, rules and principles may be subject to sudden and unexpected changes and you should always consult a lawyer about your specific circumstances.

Your Trusted Lawyers

For a lawyer in Brisbane that you can trust to represent your best interest, contact the team at ADVIILAW. We are proud to be a team of specialist senior lawyers with years of experience in commercial, property and litigation in Australia. Rely on our team for the best advice and legal represntation in Brisbane

Contact Our Team

Book Appointment


CONTACT OUR TEAM Book Appointment
Based on 100 reviews
powered by Google
Celia McQueen
Celia McQueen
10:38 17 May 21
Alice helped us with the purchase of our first home, and we greatly appreciated her attention to detail and clear... communication throughout the process. We would gladly work with her again or recommend her to others. Thanks Alice!read more
Natalie Dugec
Natalie Dugec
10:55 12 Apr 21
I am extremely grateful for the help I received from ADVIILAW. I required their services for a defamation case and... their services exceeded my expectations. At any time I needed them they were always available to help promptly and did so with a high level of professionalism. Zoran Gelic is great to work with. He explained every step in detail so that I could clearly comprehend and make informed decisions to support my case. This assisted with the positive outcome. If you need a lawyer. I highly recommend ADVIILAWread more
Michael Zarafa
Michael Zarafa
21:56 01 Apr 21
I highly recommend Zoran Gelic as a defamation lawyer. He has a proactive approach and explains everything in detail. I... ended up with a positive outcome and the experience I had with him was fantastic. Keep up the great work more
Rodney McEwan
Rodney McEwan
08:26 31 Mar 21
I can highly recommend Zoran Gelic from Adviilaw who attended to a defamation matter on our behalf. Zoran was extremely... knowledgeable, helpful and professional in resolving this matter. I can highly recommend Zoran Gelic to anyone in need of a lawyer, specifically in relation to defamation law more
Rin Kim
Rin Kim
06:41 01 Mar 21
Excellent services. I highly recommend AdviiLaw for any commercial legal help.
Carly McClintock
Carly McClintock
10:24 21 Dec 20
Alice was very professional, efficient and knowledgeable with her work, while helping us understand the process in... buying our first home. I highly recommend AdviiLaw for all your conveyancing more
Bill Vo
Bill Vo
22:03 01 Dec 20
Thank you Alice for your dedication and attention to detail towards our first home loan! Alice came highly recommended... by our broker and from day 1 Alice was very professional and courteous.Alice literally went above and beyond throughout the entire process to ensure the outcome would be in our best interest.I highly recommend to contact AdviiLaw, not just for conveyancing but for other solicitor services too!Thank you again Alice!read more
More reviews