If you sell a house on land contract, who pays the home insurance?
Home Insurance
Question by awsomenurse: If you sell a house on land contract, who pays the home insurance?
Do I still have to carry the insurance on the home since the loan will still be under my name???
We have no contract yet on it as I am in the first stages of deciding to land contract house to my renters.
Best answer:
Answer by chatsplas@sbcglobal.net
READ the contract
it’s usually spelled out clearly
Add your own answer in the comments!
Tags: can i have a homeowners policy if i purchase land contract, Home Insurance, home owners insurance for land contract, Land Contract, land contract and homeowners insurance, land contract homeowners, land contract homeowners insurance, land contract house insurance, land contract on home that is paid for, land contract renters insurance, land contract: if i pay the homeowners insurance am i covered?, Mortgages, on land contract who pays the insurance, paying homeowners insurance on a land contract, Sell, who pays for insurance on a land contract, Who Pays Home Insurance, who pays homeowners insurance on a land contract?, who pays insurance in a land contract, who pays insurance land contract, who pays insurance on a land contract, who pays the insurance on a land contract, who pays who in a land contract, who pays your home insurance with loan modification?, who provides the home owner insurance in a land contract deal, whose name is the insurance in on a land contract
You will have to carry the homeowners insurance if you are paying a loan on it. Your renters will have to purchase renters insurance.
Who gets pounded if the house/dwelling gets damaged? he/she pays the insurance.
or
The person who is still paying the loan.
You should not have to carry insurance because the person purchasing the land contract has to have insurance with your lender on their policy as mortgagee in case of loss.
In most states it is the person whose name is on the deed or title that is the legal owner of the property and has the legal insurable interest in the property. Until your name is off the documents that indicate ownership, you would be the person who is ultimately responsible for keeping up the insurance payments. As long as you have some ownership in the property you need to keep up the insurance to protect yourself from a loss.