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Ash
Ash, Solicitor
Category: Property Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I sold a property in January whereby we have exchanged contracts. The

Resolved Question:

I sold a property in January whereby we have exchanged contracts.
The buyer paid £20 000 and the balance of £60 000 to be paid in January 2016.
My question is who is responsible for the buildings insurance after exchange of contracts ?
Submitted: 2 years ago.
Category: Property Law
Expert:  Ash replied 2 years ago.
Alex Watts :

Hello my name is ***** ***** I will help you with this.

Alex Watts :

As the buyer you should have buildings insurance in place.

Alex Watts :

As contracts have been exchanged this means you are compelled to complete and therefore the risk passes to you.

Alex Watts :

Therefore you should get buildings insurance as you are compelled to complete

Alex Watts :

Can I clarify anything for you about this today please?

Customer:

In am ( or my company ) is the seller property sold to my ex partner and she is been difficult .

Alex Watts :

Ok - well whoever buys the property takes on the risk.

Alex Watts :

If its a few hundred £ you may just want to pay it to keep the peace

Customer:

What if she does not pay ?

Customer:

She has further said " if I cancel the insurance ( I still have the insurance running as she promised in January she would pay instalments but has failed to pay a penny) and a claim arises she will sue me for any losses arisen

Alex Watts :

You have a choice, either to take the risk or pay it.

Alex Watts :

You could of course sue her for the cost of the insurance?

Customer:

I have already paid it

Alex Watts :

Ok, you could sue for the cost of half of it.

Customer:

Half ?

Alex Watts :

Sorry you sold it to your ex - you could sue her for all of it.

Customer:

We are absolutely 100% correct on the legal position on this ?

Alex Watts :

Yes. When contracts are exchanged the risk passes to the buyer

Customer:

Thank you that helps a lot

Customer:

I will now leave you positive feed back.

Customer:

Thank you

Alex Watts :

Thank you, ***** ***** could ask you to rate my answer before you go today please, the button should be at the bottom of the screen

Alex Watts :

If you need more help please click reply

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