Protecting your home before settlement
EVERYONE knows that insurance can safeguard you against unforeseen events.
This is especially true for buyers who have yet to settle on their new home or investment property.
While settlement date may be weeks away, buyers need to have their soon-to-be new property insured in the lead up to settlement.
Real Estate Institute of Queensland (REIQ) managing director Dan Molloy said a property is at the buyer’s risk from 5pm on the first business day after the contract date.
“As is stated in section 8.1 of the REIQ’s residential house and unit sale contracts – which are approved by the Queensland Law Society – buyers need to be aware that insurance should be organised for their new property,” Mr Molloy said.
“The property is legally the buyer’s responsibility from 5pm on the first business day after the contract date so it is vitally important that appropriate insurance is organised prior to this time.” Most insurers provide this type of insurance for home buyers which can be organised very easily over the phone.
“From the myriad of steps in the buying process, buyers’ insurance is one of the most impor- tant as it provides protection prior to settlement. It also provides peace of mind so buyers can concentrate on, and look forward to, shifting into their new home,” Mr Molloy said.
When buying, selling, renting or investing in residential and commercial real estate, look for the REIQ accredited agency logo showing the current year as a sign of an agency dedicated to the highest standards of business practice.