The absence of a certificate of insurance under s92 of the Home Building Act 1989 (NSW) does not constitute a defect in the vendor's title to residential property, and a purchaser cannot terminate a contract for sale on that basis. The obligation to insure falls on the original builder, not on subsequent vendors. A vendor who has not obtained insurance from a predecessor in title is not obliged by statute, contract or fiduciary obligation to procure it for the purchaser's benefit. Conveyancers should note that requisitions seeking insurance certificates under the Home Building Act may be adequately answered by disclosing that no certificate exists.
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