Responsibility for property
Learn more about who has responsibility for a property that’s under contract.
For sellers
In some states, the property is at the buyer’s risk from 5:00pm on the first business day after the contract date. Despite this, Montane Legal strongly recommends you maintain your insurance policy until we have confirmed that settlement is successful. There are circumstances where the risk returns to you without notice (even after the contract is unconditional). So it’s important to maintain your insurance to avoid potential significant loss to you.
You must take reasonable care of the property until settlement. If the property becomes “unfit for occupation” as a dwelling before settlement, then the buyer may be able to withdraw from the contract.
Despite the above, if the property is damaged in certain other ways between the Contract Date and settlement (for example, due to fire or vandalism) then you will likely be able to require the buyer to settle in accordance with the contract irrespective of the damage (unless the buyer has another right of termination it can exercise, such as a residence being so destroyed or damaged as to be unfit for occupation).
For buyers
In some states, the property is at the buyer’s risk from 5:00pm on the first business day after the contract date. Montane Legal strongly recommends you take out appropriate insurance immediately after you sign the contract.
Learn more
- Learn more about about property titles.
- Find out about property searches.
- Learn how Montane Conveyance makes your property transfer smooth and stress-free.
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