Re: Insurance question - Posted by JPiper
Posted by JPiper on May 09, 2000 at 09:06:48:
“Got the title company to do the whole thing. Buyer was suppose to get insurance and show proof.”
So why was the deal closed if the Buyer did not have an effective insurance policy in place? Was this requirement in your contract? Did the title company ignore a condition of closing? Did you ignore this condition? Requiring an insurance policy on the date of closing is ROUTINE. Why wasn’t this condition followed.
Either way, I wouldn’t want my collateral sitting there with a bad roof. Nor would I want the Buyer overlooking his own responsibility. Depending on the other details I would wonder about the title company’s responsibility as well.
I would use the funds to repair the roof…but require payment by the Buyer. If they couldn’t afford the full amount…I’d create another note with a shorter payoff to cover the roof. Try to get some additional collateral for this note.
Remember though, this deal should not have been closed without a policy in effect. Yes…they Buyer “should” have done it. BUT, this deal should not have been closed without it. The Buyer is not the only person who screwed up here. Something to think about.