Insurance.

Discussion in 'Property Investment - Other' started by rico2011, 24th Jun, 2015.

  1. rico2011

    rico2011 Member

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    Have signed a contract with a 90 days settlement that the elderly sellers wanted. I know I should have the place insured from the contract date but I will be paying 90 days insurance... If the property is a total loss within the 90 days from say fire can I terminate the contract anyway?

    I saw on here where a buyer wanted to terminate a contract based on him losing his job and not being able to get finance, does a house burnt to the ground entitle me to terminate?
     
  2. Perp

    Perp Member

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    No, you can't rescind on the basis of an insurable event. If the owner damages the property in a non-insurable manner - e.g. removes fixtures, puts holes in the wall - then you could raise these at pre-settlement inspection.

    But if the property is damaged due to an insurable event, you are still obliged to complete, and should have insurance to cover it.

    What I usually do is insert a special condition, transferring the risk back to the vendors until settlement, otherwise both parties have to pay insurance for this period.
     
  3. TMNT

    TMNT Member

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    didnt know that
    but I guess thats logical, buyer pays for insurance in case the house burns down, AND owner pays for insurance in case it burns down and still can settle

    seems a bit silly for double insurance
     
  4. Propertunity

    Propertunity Real Estate Buyers Agent

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    Not for the insurance companies :(