INSURANCE:
All buildings on the property and all other things being purchased shall be and remain until completion at the risk of Seller.
Pending completion, Seller shall hold all insurance policies, if any, and the proceeds thereof in trust for the parties as their interests may appear and
in the event of substantial damage, Buyer may either
- terminate this Agreement and have all monies paid returned without interest or deduction, or
2) else take the proceeds of any insurance and complete the purchase.
No insurance shall be transferred on completion.
If Seller is taking back a Charge/ Mortgage, or Buyer is assuming a Charge/Mortgage, Buyer shall supply Seller with reasonable evidence of adequate insurance to protect Seller’s or other mortgagee’s interest on completion.
Comment
So, the Seller doesn’t even have to have any insurance whatsoever! If you are acting for a Buyer then it may be wise to get them to insure the property right from the date of purchase. They have an insurable interest in the property.
Brian Madigan LL.B., Broker