20/02/2026
🚨 Vendors: You Are Responsible Until Settlement
Many Vendors make a costly mistake — cancelling insurance once the contract is signed.
Under standard Victorian contracts, the Vendor carries the risk of loss or damage to the property until settlement.
Here are real examples we see:
🔹 Air-conditioning stolen
External compressor units removed overnight. Refrigerant lines cut. Electrical wiring damaged.
🔹 Copper pipes stolen
Walls opened up. Water lines ripped out. Flooding damage left behind.
🔹 Windows smashed
Vacant properties targeted. Broken glass, internal water damage, security risk.
🔹 Outdoor fixtures removed
Garden taps, hot water systems, pool equipment taken.
If this happens before settlement —
👉 The Vendor must repair or claim on insurance.
👉 The property must be delivered in the same condition as the day of sale (allowing for fair wear and tear).
If the damage is substantial, the Purchaser may:
• Claim compensation
• Delay settlement
• In serious cases, rescind the contract
⚠️ Do not cancel your building insurance early.
⚠️ Purchasers — always conduct a final inspection.
Property risk does not transfer until settlement.
If you are dealing with settlement issues or property damage disputes, please obtain legal advice.
📞 Eve Legal
03 9000 5610
[email protected]
