buyer gets insurance before settlement... - Posted by SanDC

Real Estate Investing
1

Posted by Randy (SD) on October 22, 2003 at 11:55:27:

Before you criticize your buyer for ?Preparing to close? on the property, you might ask the new agent if it is a binder intended to go into effect the day of closing. This is a good move on the part of a buyer know he has insurance and is able to close rather than waiting and possibly not being able to get insurance? don?t punish them for good planning.

Also you ask ?can you use this to back out?? No, not necessarily ? do you want to back out?

2

buyer gets insurance before settlement… - Posted by SanDC

Posted by SanDC on October 22, 2003 at 11:47:16:

We haven’t even gone to settlement yet,
but I saw a home-insurance agent come by today.

The house now has double-coverage, mine and his.
Is this legal?

Can I use this as excuse to back out of contract
if I decided I don’t want to sell?

3

Re: buyer gets insurance before settlement… - Posted by dimpil

Posted by dimpil on October 22, 2003 at 13:36:02:

You order insurance before settlement and it is paid at closing. So the anget was more than likly taken measurements and such. They do that.

His will go into effect the day before closing or day of closing.

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Re: buyer gets insurance before settlement… - Posted by Kristine-CA

Posted by Kristine-CA on October 22, 2003 at 12:22:48:

My goodness. What’s all the excitement about? How do you know the house has double coverage? Just because the agent drove by? It is normal for buyers to contact their agents and to shop for insurance as soon as they have a contract. Everything needs to be in place the day of closing. It’s not something you do after closing. My contracts state that when I’m the seller I’m to have access for insurance inspection purposes. And I have the same clause for my buyers.

Is there something else going on here? Why do you want an excuse to back out of the contract?

Sincerely, Kristine