All Topics / Creative Investing / Instalment contracts and insurances

Viewing 6 posts - 1 through 6 (of 6 total)
  • Profile photo of Into_propertyInto_property
    Participant
    @into_property
    Join Date: 2012
    Post Count: 11

    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

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    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 Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Into_propertyInto_property
    Participant
    @into_property
    Join Date: 2012
    Post Count: 11

    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.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    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

    Profile photo of Paul DobsonPaul Dobson
    Participant
    @pauldobson
    Join Date: 2003
    Post Count: 1,196

    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 Me

    An alternative way to finance your home.

    Profile photo of shereebeckershereebecker
    Member
    @shereebecker
    Join Date: 2004
    Post Count: 31

    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 

Viewing 6 posts - 1 through 6 (of 6 total)

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