Legal Question in Real Estate Law in Florida
Insurance Liability
I sold a mobile home by Contract for deed to a freind of mine. At the time I gave him choice of two options a higher payment and I would assume taxes and insurance or a lower payment and he would assume taxes and insurance. He informed me in March he had obtained insurance at which time I dropped my homeowners, I have asked him for a copy of policy and though he said he get it to me, so far hasn,t. He made 3 morgage payments and then quit and I, know in the process of foreclosing on him. The problem now is I was informed a freind of his hurt her leg by falling in a hole in the floor that has been there for several months( though this is the first I was told of it) and she intends to sue me for her injury,s. This is an older mobile home that he accepted in an as is condition, there was another minor problem with the pump which he informed me about but accepted as his responsibilty. I need to know where I stand on th insurance issue. Is it his responibility till I retake possesion of the place, or am I responsible since he did agree to accept the lower payment and be resposible for taxes and insurance.
1 Answer from Attorneys
Liability 4 injury in trailer sold to FREIND; titled my name.
FACTS: Sold mobile home by Contract for deed to
FRIEND; gave choice of two options: higher payment
and I pay ins. OR lower payment FRIEND pays ins.
FRIEND informed had obtained ins. at which time I
dropped my homeowners ins. Made 3 mtg. pymts. and
then quit; in the process of foreclosing found out
that guest hurt leg by falling in a hole in the
floor that has been there for several months
(this is the first I was told of it); guest intends
to sue for injuries.
Q. Is Buyer responsible till I foreclose since
buyer agreed to accept lower payment and be resp.
for insurance? Am I responsible?
A. A contract for deed in Fla. is treated just
like a deed out and mortgage back; that is why you
are having to foreclose. You hold Equitable Title
for FRIEND who owns the beneficial interest. Your
atty. can handle this by filing papers when you
get sued. You may get named but hopefully not
tagged in any suit.
It should go without saying: don't have business
dealings with friends unless an atty. is involved.
You can lose friends and get hurt. But if you ever
do this again with a friend, then don't take any
action until you see it in black and white. It is
cheaper in the long run to use an atty. as you are
about to find out.
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