SUB 2 - Who Pays Taxes & HO Insurance?
Let's say that I buy a property SUB 2 and sell it on a L/O or FSBO to an end buyer, who's name are the taxes & HO Insurance in? Does my new buyer get his own HO ins?
Kinda confused here. THANKS
-Paul
Is it escrowed? That is one of thye first questions I ask about the payment (PITI). If so just convert ito a no owner occupied/ land lord policy. Put you or your land trust or company as primary insured with the original owner as additional insured. If you get a hassel out of an agent just add you as additional insured.
Your t/b gets there own renters policy to cover there own goods.
Best to you
Sire[ Edited by sire on Date 03/12/2004 ]
Sire is right! However, I will have them sign a power of attorney that will allow me to make changes to the existing policy in the sellers name and the investor as an additional insure. This will allow you not to complicate things for new underwriting will involve a new policy and depending on the property it might not be insurable with new carrier.
If FSBO and owner financed the end buyer shall get their own insurance with the owner as additional insured.
Hope it helps
CA
[addsig]
Sire & CA,
Thanks for the info. This really helped