Insurance and risk

This guidance note provides expert legal insights into the complexities of insurance and risk in property transactions across Australian jurisdictions. Practitioners must understand the critical nuances affecting risk transfer, vendor obligations, and purchaser protections to navigate these issues effectively. Key topics covered include:

Topics Covered

• Contract for the sale and purchase of land 2022 edition (NSW)
• Vic — Contract of sale of land (Aug 2019)
• Real Estate Institute of Queensland (REIQ) — Contract for houses and residential land — 16th Edition
• WA — Contract for sale of land or strata title by offer and acceptance (2022 edition)
• TAS — Standard Form Contract for Sale of Real Estate in Tasmania — The Particulars of Sale (2023 edition)
• NT — Law Society of the Northern Territory — Contract of sale — 2006 Edition (REINT)

Essential Insights

• Understand how risk transfer timing differs across states, impacting vendor insurance obligations and purchaser protections.
• Recognise vendor delivery requirements, including vacant possession and condition standards, and their legal boundaries.
• Consider statutory rights allowing purchasers to rescind contracts or claim compensation following substantial property damage.
• Navigate the interplay between standard contracts, common law, and statutory provisions affecting risk and insurance.
• Explore the limits of vendor warranties and how contractual variations can alter risk and insurance responsibilities.