Selling real property

[all4me2]

What is the name of your state? North Carolina

My mom and dad are selling land with mh and other buildings (garage, sheds)"by pwner". Shouldn't there be something in the agreement they have with the buyers to have homeowners insurance on the property should there be any damage done.

 

[HomeGuru]

What is the name of your state? North Carolina

My mom and dad are selling land with mh and other buildings (garage, sheds)"by pwner". Shouldn't there be something in the agreement they have with the buyers to have homeowners insurance on the property should there be any damage done.

**A: what is mh?

 

[all4me2]

Mobile Home

 

[Some Random Guy]

Why

There are usually requirements that the SELLER have insurance on the property up until the date of closing. Likewise the mortgage lender for the BUYER may require them to have insurance starting the day of closing.

Is there a reason that you think that the seller should require the buyer to purchase insurance? Is this a lease to own or is seller holding the mortgage for the new buyer?

 

[all4me2]

They (my parents) are selling it with a down payment and monthly payments for 5 years.

 

[Some Random Guy]

As I stated earlier "Likewise the mortgage lender for the BUYER may require them to have insurance starting the day of closing."

Since your parents are in effect the mortgage holder, they should require that the buyers get insurance before closing.

And because you are giving other people free reign over a valuable family asset for 5 years, I would suggest consulting a real estate attorney to make sure your purchase agreement and mortgage have all of the necessary clauses to protect your family when things start to go wrong.

 

[HomeGuru]

They (my parents) are selling it with a down payment and monthly payments for 5 years.

**A: then that is called an installment contract, contract for deed, agreement for deed, agreement of sale, land sales contract, owner financing.......
You are corect, insurance is a requirement among a whole list of other requirements. And if they are smart, they will hire an attorney to draft the contracts

 

[all4me2]

Thanks for your reply SRG.

 

[all4me2]

Thank you too, HomeGuru.

 

[HomeGuru]

Thank you too, HomeGuru.

**A: no problem. Just amek sure that they hire an attorney. Otherwise you may be posting here again under different circumstances.