When a property is sold under vendor terms the client takes over all outgoings including insurance. Should the client stop paying them the property is reposessed or similar.
How does one ensure that the client insures the property for building & contents damage, if they are responsible for the outgoings. Without a guarentee the building is insured the potential exposure is too great.
Thanks
It is very simple you include a clause in your installment contract stating that you will insure the building and debit the purchasers loan account with the premium amount.
In the event that the purhcaser pays an amount into the account to the value of the buildings insurance premium then no interest will be charged.
That way you are always covered.
Cheers Richard
Ph: 07 3720 1888
[email protected]
http://www.yourstatefinance.comSpecialising in US & IP finance.
Richard Taylor | Australia's leading private lender
Thanks Richard,
I am guessing that this is a standard situation and this is the normal solution.
As the wrappee is not a tenant then I would expect a standard building policy to apply and then the wrappee would take out their own contents cover to insure their goods if they so wished…
Once again thanks
A standard Landlord policy is OK, but there are now special products for wrapping. Australian Unity have one, but we have switched to CGU’s because it’s cheaper and gives better cover (esp for the wrapees)
Lance
.
Fair Go Homes
http://fairgohomes.com.auRapt with Wrapping!
1300 666 247
[email protected]Thanks Lance and very interesting…
I was looking at the CGU site and couldn’t find any reference to wrap deal insurance. Is it under landlord or similar or am I totally in the wrong place ?
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