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Section 49 of the Transfer of Property Act, 1882 addresses reinstatement of immovable property…

Section 49 applies to property insured against loss or damage by fire at the date of a transfer for consideration. Absent a contrary contract, the transferee may require the…

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Section 49 of the Transfer of Property Act, 1882 addresses reinstatement of immovable property transferred for consideration. Against which risk must the property have been insured at the date of transfer for the section to apply?

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Answer and explanation

Correct answer A

Section 49 applies to property insured against loss or damage by fire at the date of a transfer for consideration.

Absent a contrary contract, the transferee may require the transferor to apply the necessary amount of any policy proceeds actually received to reinstating the property.

Option feedback

Option A

Section 49 specifically addresses cover against loss or damage by fire.

Option B

Section 49 does not name encroachment as the insured risk.

Option C

Section 49 specifies fire cover. A policy covering flood damage alone does not satisfy that condition.

Option D

Section 49 does not name theft as the insured risk.

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