I am receiving conflicting advice. Can anyone confirm if ownership takes place from the signing of the contract and all conditions being met or settlement???
Thanks Joanne
Hi Prado,
settlement is the answer!
That was quick and easy!!
Cheers, and happy investing,
Nathan.[
][][]Hi Joanne,
I am receiving conflicting advice. Can anyone confirm if ownership takes place from the signing of the contract and all conditions being met or settlement???Ownership takes place when title is transferred into your name.
Until then you only have an equitable interest.
Now… since I’m in a good mood and it’s Friday I’ll go a little further.
In Vic., the vendor is thought to have an obligation to keep the property insured until settlement occurs, HOWEVER…
If the property was to be partially destroyed without insurance then the purchaser might still have to settle. That’s why it’s wise to insure the property from the date of the contract rather than the date of settlement.
If the property was totally destroyed then the contract would probably be voidable.
Has this helped?
Bye,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Yes, settlement is when the title has been transferred into your name and ownership takes place.
However as Steve pointed out, the purchaser has a legal obligation to insure the property from the date of contract, not settlement date. This is also the case in QLD.
Capital gains is worked out from contract date of purchase and sale, not settlement date.
Thanks everyone for the feedback.
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