Insurance.

[rico2011]

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?

 

[Perp]

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?

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.

 

[TMNT]

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.

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

 

[Propertunity]

....seems a bit silly for double insurance

Not for the insurance companies