Queensland Consolidated Acts

PROPERTY LAW ACT 1974 - SECT 63

63 Application of insurance money on completion of a sale or exchange

(1) Where after the date of any contract for sale or exchange of property, money becomes payable under any policy of insurance maintained by the vendor in respect of any damage to or destruction of property included in the contract, the money shall, on completion of the contract, be held or receivable by the vendor on behalf of, and, on completion of the sale or exchange or so soon afterwards as the same shall be received by the vendor, paid—

(a) to any person entitled to the money because of an encumbrance over or in respect of the land; and

(b) as to any balance remaining, to the purchaser.

(2) For the purpose of this section, cover provided by such a policy maintained by the vendor extends until the date of completion, and money does not cease to become payable to the vendor merely because the risk has passed to the purchaser.

(3) This section shall apply only to contracts made after the commencement of this Act, and shall have effect subject to—

(a) any stipulation to the contrary contained in the contract; or

(b) the payment by the purchaser of the proportionate part of the premium from the date of the contract.

(4) This section shall apply to a sale or exchange by an order of court, as if—

(a) for references to the ‘vendor’ there were substituted references to the ‘person bound by the order’; and

(b) for the reference to the completion of the contract there were substituted a reference to the payment of the purchase or equality money (if any) into court; and

(c) for reference to the date of the contract there were substituted a reference to the time when the contract became binding.