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VIC Building Variation - Release and Authority Form from Insurer

Discussion in 'Insurance Law Forum' started by Rose Smithers, 3 February 2015.

  1. Rose Smithers

    Rose Smithers Member

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    Have received a Release and Authority form after being awarded a payment from court. The form has a clause that states that if property is sold within 6 years that the purchaser must be advised in writing. The property was sold prior to receiving form and the owner was advised that the property was under insurance claim and that they could not settle until claim was settled. How do we go about adjusting or attaching a notification so that we can sign this release form? Will a statutory declaration cover this? We have had very poor performance from our legal representative and need to sort this out
     
  2. Tracy B

    Tracy B Well-Known Member

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    Hi Rose,

    A little background information into the dispute will be helpful.
    • What is the Release and Authority form for?
    • What is your relationship in this dispute? Are you the builder?
    • Is the Release and Authority for settling the insurance claim on the property? If not, do you have any control over the settling of this claim or must you wait for the owner to deal with this? By "owner" you mean the vendor rather than the purchaser?
    • Under the Release and Authority form, what must you notify the purchaser about within 6 years of court order?
    Are you asking how you can give notification to the purchaser so that you comply with the Release and Authority form?
     
  3. Rose Smithers

    Rose Smithers Member

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    Thank you for reply.
    Release and Authority form was sent by Insurance company to be signed by us for them to release payment
    We are the original owner who sold to new owner
    The release is for settling claim on property
    It states we must give notice to the purchaser in writing that property is bought as is with no further claim on insurer
    The form arrived after the sale but it was stated in the sale contract that the property was to be sold with no claim on us or the insurance company.
    Can we sign the release as is and attach a copy of the contract noting the clause or do we have to go through the whole thing again to have the form changed.?
     
  4. Tracy B

    Tracy B Well-Known Member

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    Hi Rose,

    A copy of the purchase agreement with the term that the property is sold as is and the new purchaser is not able to claim against the insurer in relation to the same matter should be sufficient. To be safe, best to write a formal letter addressed to the purchaser advising them of this (i.e. the claim has been settled and the defect is reflected in the purchase price and therefore, the purchaser waives any right to claim in relation to any existing defects in the property against the vendor or [the insurance company]), if you can, have the purchaser sign acknowledgement, however, even if unsigned, a copy of this letter to the insurance company should suffice.

    If you are still unsure, to cover all bases, you can give the insurance company a call and ask whether this would be sufficient.
     
  5. Rose Smithers

    Rose Smithers Member

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