Legal Question in Insurance Law in California

My client owns a motel and is selling it to another party who is running the motel. The person that is buying and running the motel did not provide insurance on the building so the owner asked me to write coverage on the building to protect his intereest as owner. My client asked me to collect the premium from the person that is buying the motel. I billed this person and he said he would pay the premium but has not done so. The insurance cancelled for non payment and now there is an amount owed to the insurance company. My client tell s me he can not pay the amount owed, because if he does he then must foreclose on the property and I should collect from the new owner. I have tried to collect but he is ignoring my requests. I know there is such a thing as Mechanic's Lien but I do not think that would apply in this case. Is there another way to lien the property until the premium is paid?


Asked on 8/14/09, 1:05 pm

1 Answer from Attorneys
Steven Murray Steven W. Murray, APC

You are evading the obvious answer: your client is stiffing you. Foreclosure is not required for a seller to obtain money from a buyer, nor from a landlord to get money from a tenant.

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Answered on 8/14/09, 1:40 pm


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