First time she has
encountered this and was not sure if it was going to make the sale
questionable.
OK if I was in the situation
1st thing I would do is contact the seller and advise them
of the situation. Have them contact police and file a report then
contact their insurance company to report the break in and request
they send an adjuster to the property.
In this case the seller
canceled his homeowners insurance when they moved out! Please never
cancel coverage on a property you own till the property has closed!
This is just one of many scenarios that could happen to a home while
it is under contract and having coverage on the property for
incidents such as this case or in the case of one of my clients where
there was a severe water leak from water heater that resulted in
$50,000 damage.
In all these scenarios there
is one golden rule. Inform and disclose all issues to all parties as
soon as possible. In Texas there is a clause dealing with property
condition at time of sale. In the case of the break in the seller has
the right to repair the damage to the same or better condition that
it was in at the time the contract was effective.
There are all kinds of
things that can happen to people and property during a sales
contract. 1st thing all the parties involved in the
transaction have to remember is that most issues can be resolved as
long as everyone is involved in the facts and have access to any
information about the incident.
So 2 important lessons
A) Never cancel insurance on
a property till the property closes. Talk to your insurance company explain facts. If you move out prior to sale you may be able to adjust the coverage on the home to cover structure but may not need the personal property coverage anymore. Take an experts advice!
B) disclose, disclose,
disclose – honesty and a clear representation of the facts are the
best remedy for all issues that may arise during a sales contract.
Regards,
Bob Kenney, Realtor®
Mobile/Text: 512-922-4922
No comments:
Post a Comment