Posted by Bill K. - FL on February 05, 2000 at 10:07:47:
It seems to me with regard to loss claims that the owner is entitled to the claim proceeds but then would be liable to repair the house to allow for the tenancy. If the owner does not,and the house is not liveable or put back in it’s previous condition, then any option money, paid by and rent credits due to, the optionee would have to be refunded by the owner. The same would follow between any agreement with a sub-optionor and sub-optionee. Anyone who has been in this position please respond.
I am talking to a few people about doing a L/O with their properties, and I was wondering what should I do with the insurance. I want to get named on the homeowners policy, don’t I??? So how can I do this with tiggering the DOS clause? Won’t the lender be notified when their is a change in the insurance?
Posted by Jim IL on February 04, 2000 at 19:56:22:
Tim,
Just have the seller list you as additional insured on the policy.
Your L/O agreement should spell that out.
Then, have your T/B’ers get “Renters” insurance for there personal property. (that should be in your lease to them as a requirement.)
And, forget about the D.O.S clause.
The seller is still on the policy, so there will be nothing for the lender to notice.
You may also consider having the contract spell out what happens to the funds IF there is a claim as well as getting a power of attorney from the sellers to allow you to use the funds if you need to.
And, also put in your L/O agreement with the seller that IF there is a claim, you have the option to walk away.
Hope that helps,
Jim IL
P.S. Disclaimer…this is merely what I do, not legal advice or anything. I am but a simple man, not an attorney. Õ¿Õ