Call me stupid, but why is it that Queensland appears to be the only state where you are required to insure a property immediately after signing a contract?
I am legally qualified, (although conveyancing was not my favourite subject, as I worked in Court system), but could never understand why you have to insure something that you do not yet own. Victoria has a better system in that insurance is not required until settlement. And Victoria apparently agrees with me….you cannot insure something that is not yours. It is up to owner to maintain insurance until settlement.
I have researched this issue myself, and also with Solicitors from other states, as well as Queensland
and nobody can come with a proper reason for it.
Is this just another "Queensland thing?"hi i am not sure about this, however i am just in the process of refinancing loans and bankwest has asked for the insurance papers to reflect that they are the source of finance for the property. I haven't even changed the loans over yet and was surprised to see this as a prerequisite for the finance. Although I am more than happy to have this information on the policy I would have thought that this should or could be doen once the loans are actually transferred.
cheers
Sonya
It is because under common law once you have exchanged contracts the risk on the property passes to the Purchaser. In states where this doesn't happen it is because legislation ahs changed when risk passes
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