Hi everyone, just a quick one – when selling a property on an installment contract do you normally keep building insurance or make it a requirement for your buyer to get there own?
Cheers,
Jason
Keep your own policy up for your own protection. What if the house were to burn down and it wasn't insured?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Terry, that was my thinking but wasn't sure if that was the 'norm', wondered if maybe people were requiring current certificate of insurance etc like a bank would on your own mortgage. Feels like it would be easier just to keep your own.
I am with Terry we would never leave insuring the property to the wrappee and always insure the property ourselves and then debit the loan account with the premium.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
We do the same as Terry and Richard with the added cover of having the words, 'this property is being sold with and Instalment Contract' included in the policy, i.e. the fact that the property is being sold with an Instalment Contract has been accepted by the insurance company, i.e. Vero.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Yes as above , always insure it yourself and pay the premium yourself. You can always have it as part of your contract to them that they pay for this property outgoing by reimbursing you if you wish but at least you know it's always covered.
cheers Sheree
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