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Passing of risk between vendor and purchaser of land    

 

This reference is part of the Community Law Reform Program

Reference received: 20 June 1983

​Report

​Report 40: Passing of Risk Between Vendor and Purchaser of Land [PDF, 227Kb], March 1984

Tabled in parliament: 8 May 1984

Legislative action: Conveyancing (Passing of Risk) AmendmetAct 1986 ​

Judicial citation: Stephenson v State Bank of NSW Ltd (1996) 39 NSWLR 101, 103, 105, 108 and 112; Baker v Jessup (1998) 9 BPR 16,653; Urban House v Purnell Bros [2007] NSWSC 1248 [3]; Gorgas v Hwang [2010] NSWSC 1121 [30]

Terms of reference

To inquire into and report on:

(i) The law and practice relating to insurance or compensation in respect of damage to or destruction of improvements and other property on land the subject of a contract for sale, and as part of such inquiry to consider the following:

  • how the risk of such damage or destruction should be borne as between vendor and purchaser
  • whether the benefit of an insurance policy held by the vendor should ensure for the purchaser

(ii) the manner in which the proceeds of any insurance policy held by the vendor or the purchaser, or any compensation received by either party, should be applied.

(iii) Any incidental matter.