Dont take the risk
Tuesday, April 21, 2015
Terry Bethke of Munro Thompson, Lawyers Mooloolaba shares his expertise and knowledge to answer another legal question.
This week we ponder:
“Prior to settlement of a Contract for the purchase of a house, a storm destroyed the shutters on the veranda and balcony sails. The seller has refused to fix the damage and says it is my responsibility. Do I have to pay to fix the damage?”
Standard Contracts state that the property is at the buyer’s risk one business day after signing the Contract.
This means that you accept the risks of ownership of the property even though you are not yet the owner. Legally you have an equitable interest under the Contract.
Therefore, unless the property is so destroyed or damaged as to be unfit for occupation, fixing the shutters and sails is your responsibility.
As the buyer under a Contract, you are able to obtain insurance cover for the property to protect yourself against these types of events and damage to the home.
Obtaining insurance cover immediately after signing the Contract is the key and will protect you for these risks.
*Appeared in Sunshine Coast Daily Newspaper