In Queensland, the requirement for purchasers to take out insurance within 24 hours of signing a real estate contract — even if it’s still conditional — is about managing risk and protecting the buyer’s interest. Under the standard Real Estate Institute of Queensland (REIQ) contract, the risk of the property typically passes to the buyer from 5 pm the next business day after signing. This means that if something happens to the property before settlement, the buyer bears the risk.
For example, if the vendor no longer has building insurance — maybe they’ve already moved out — and a storm causes major damage after the contract is signed, the vendor isn’t obligated to cover the costs. Without insurance, the buyer could face expensive repairs for a home they haven’t even settled on and might still be legally required to complete the purchase.
Taking out insurance early safeguards the buyer from this kind of financial risk. Even if the sale falls through due to unmet conditions, the cost of short-term coverage is minor compared to the potential loss if something goes wrong.
This makes early insurance coverage a vital step in any Queensland property purchase — protecting the buyer’s investment from the moment risk transfers.
We at Gardian Insurance are here to help. You can call us at 07-4957-7424 or email us at enquiries@gardian.com.au.
