Posted by Rob FL on January 25, 2000 at 15:53:26:
The name on the insurance should be the same name as on the last deed of record.
Just because a property is in a flood zone doesn’t mean it is at risk of flooding. Judge each property independently. If you are planning on re-selling this property in the near future, this may be more of a hassle than it is worth.
Land Trust & insurance - Posted by Markr
Posted by Markr on January 24, 2000 at 19:11:06:
I just obtained 100% benificial interest in a property. It is located in a flood zone and the seller is not carring flood insurance.I would like to get it but am not sure if I should get it in my name or the trust or the sellers name. Can anyone Help? Thanks Markr
Re: Land Trust & insurance - Posted by Bill Gatten
Posted by Bill Gatten on January 26, 2000 at 14:19:59:
This is one of the many reasons the PACTrust is set up like it is (i.e., the land trust always being in the seller’s[borrower’s] name). By leaving the seller in and taking a forfeiture of its interest (e.g., 10-20%) at the trust’s termination), insurance can comfortably remain in the sellers name to cover “HIS” trust. You, as a beneficiary with the Power of Direction (control) and full use and poessesion (and tax benefits), are then fully covered…without hassles in trying to get an insurance company to insure a trust in which the borrower on the loan has no connection or control. When you are a 100% beneficiary interest holder, and when the seller has given away all control and direction, having done so can cause a real squirrel fight when it comes to insurability issues (hazard and title insurance). Leaving the other party on has myriad other benefits as well (re. the due on sale clause issue, protection from creditor and tax liens, BKS, marital dispute, ect., re. “non-partionability of personalty”).
Bill Gatten
Bill