Transfer of Property Act Section 49 — Transferee’s right under policy

CHAPTER I PRELIMINARY

General

Summary

If you buy immovable property for payment, and that property is covered by a fire insurance policy on the date of the transfer, then you as the buyer have a right to that insurance money if a fire damages the property. Unless the sale agreement says otherwise, you can demand that the seller use the money they actually receive from the insurance company to repair or rebuild the property, to the extent needed.

Official Text

Where immoveable property is transferred for consideration, and such property or any part thereof is at the date of the transfer insured against loss or damage by fire, the transferee, in case of such loss or damage, may, in the absence of a contract to the contrary, require any money which the transferor actually receives under the policy, or so much thereof as may be necessary, to be applied in reinstating the property.