jim, Both Buyer and Seller in Jackson, MS

who have to pay for home insurance..the seller or purchaser if the purchaser is making monthly payment for a house

Asked by jim, Jackson, MS Thu Dec 19, 2013

purchaser agrees to pay for property tax and home insurance but has not paid.seller want to find out what to do if purchaser doesnt pay property tax and home insurance(seller paid for both already)..purchaser been making on time monthly payments on house for more than a year..not sure if its on deed that purchaser has to pay for both

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5
Mack McCoy’s answer
The person who cares most has to pay.

Regardless of your agreement - if there is no insurance in place, and something happens, it's a bad thing. If the property tax isn't paid and the county forecloses, it's a bad thing.

If you think the other guy should pay, and they haven't, you better pay, because if something bad happens, it will happen to you.

All the best,.
0 votes Thank Flag Link Fri Dec 20, 2013
A property owner should NEVER allow a tenant to control such crucial elements as home insurance or taxes. Failure to pay these can create extreme problems for an owner.
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This principle is so fundamental. so basic that either you are dealing with a novice investor type or you do not fully understand the situation.
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The answer to your question is contained in the lease/purchase agreement.
If the agreement does not state buyer is required to purchase home insurance AND buyer is required to pay property taxes....that is your answer. An owner who delegates this to an buyer/tenant is not receiving good advise.
2 votes Thank Flag Link Thu Dec 19, 2013
Typically the details of what needs to be paid is on the mortgage and note, not the deed. If the mortgage is a standard one, foreclosure can be initiated for breaking the terms. You should see an attorney to review it and explain what your options are. if you are the seller, go to the lawyer you hired to write the mortgage to begin with.
2 votes Thank Flag Link Thu Dec 19, 2013
Jim, There is information that we dont have here. Are you the buyer, or seller? What type of sale was this? It sounds more like a lease purchase/rent to own deal or possibly an owner financed deal than a normal bank financed mortgage.
If so, there should be a contract that everyone Is going by. This should be spelled out in it. You should probably find a good real estate attorney to advise you on the matter.

Best of luck,

Aaron Sims
Web Reference: http://aaronsims.kw.com
1 vote Thank Flag Link Thu Dec 19, 2013
Thankyou all for the info..i was helping out a relative that was the seller and the buyer was also a relative..went to lawyer and got everything taken care of..the purchaser agreed to pay home insurance and property tax but did not pay..the lawyer that did the contract for deed ended up telling the purchaser that she has to pay for the property tax and insurance tax...after purchaser realize this..she decides to pay off the rest of the balance for the house,property tax for last year,and home insurance for this year.the problem was that the purchaser did not want insurance on the house but the seller purchased insurance just in case if something happened to the house it will be covered and seller would not lose investment..Another question i have is ..if the seller's name is on the property tax for this yr. and the lawyer said the buyer has to make that payment before end of this year..what happens if the buyer end up not paying for it..does it go back or get charged to the seller ??
Flag Thu Dec 19, 2013
Thankyou all for the info..i was helping out a relative that was the seller and the buyer was also a relative..went to lawyer and got everything taken care of..the purchaser agreed to pay home insurance and property tax but did not pay..the lawyer that did the contract for deed ended up telling the purchaser that she has to pay for the property tax and insurance tax...after purchaser realize this..she decides to pay off the rest of the balance for the house,property tax for last year,and home insurance for this year.the problem was that the purchaser did not want insurance on the house but the seller purchased insurance just in case if something happened to the house it will be covered and seller would not lose investment..Another question i have is ..if the seller's name is on the property tax for this yr. and the lawyer said the buyer has to make that payment before end of this year..what happens if the buyer end up not paying for it..does it go back or get charged to the seller ??
Flag Thu Dec 19, 2013
Thankyou all for the info..i was helping out a relative that was the seller and the buyer was also a relative..went to lawyer and got everything taken care of..the purchaser agreed to pay home insurance and property tax but did not pay..the lawyer that did the contract for deed ended up telling the purchaser that she has to pay for the property tax and insurance tax...after purchaser realize this..she decides to pay off the rest of the balance for the house,property tax for last year,and home insurance for this year.the problem was that the purchaser did not want insurance on the house but the seller purchased insurance just in case if something happened to the house it will be covered and seller would not lose investment..Another question i have is ..if the seller's name is on the property tax for this yr. and the lawyer said the buyer has to make that payment before end of this year..what happens if the buyer end up not paying for it..does it go back or get charged to the seller ??
Flag Thu Dec 19, 2013
Thankyou all for the info..i was helping out a relative that was the seller and the buyer was also a relative..went to lawyer and got everything taken care of..the purchaser agreed to pay home insurance and property tax but did not pay..the lawyer that did the contract for deed ended up telling the purchaser that she has to pay for the property tax and insurance tax...after purchaser realize this..she decides to pay off the rest of the balance for the house,property tax for last year,and home insurance for this year.the problem was that the purchaser did not want insurance on the house but the seller purchased insurance just in case if something happened to the house it will be covered and seller would not lose investment..Another question i have is ..if the seller's name is on the property tax for this yr. and the lawyer said the buyer has to make that payment before end of this year..what happens if the buyer end up not paying for it..does it go back or get charged to the seller ?? seller has already signed the warranty deed to buyer..(again)seller is concern that the property tax sheet is under his name and lawyer has given it to the buyer to pay before end of this yr.
0 votes Thank Flag Link Thu Dec 19, 2013
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