RISK of Loss (equitable Conversion) Flashcards
majority rule (eng)
risk of loss by destruction of the property falls not the VENDEE as long as the vendor is
- willing & - able to perform
Minority Rule (Mass)
the destruction of the property constitutes a failure of consideration and therefore, the vendor absorbs the damage
majority view follow
eqiutable conversion
Maj view + equitable conversion + Risk of loss cases
modification of eq. conversion
where the vendor is Not able to perform his obligations at the time of the loss, states modify effect of equitable conversion.
-the earliest the risk of loss can transfer to the vendee is on the closing date set in the contract
**must be 1) ready 2)wiling & 3) able to close
date set for closing=day u have risk
Casaulty insurance can be ______ or _______?
all risk or named risk
all risk
covers everything that is not expressly excluded
named risk
only covers specified problems
what must the insured have before an ins co. will pay??
an Insurable Interest.
insurable interest?
sufficient ownership in the property so that the casualty causes an economic loss to the insured.
whoever has the ___ __ ___ has an insurable interest
risk of loss
Vendee had to get insurance, is he credited that?
most jurisd- req. to apply it to the purchase price if the vendee was REQUIRED to purchase a policy in the contract
Vendor purchased the policy, is he credited that?
vendor keep the proceeds without crediting the purchaser
Does a party without the risk of loss have an INTEREST in the property?
no- not for casualty insurance, only pay if the insured had an interest in the property
risk of loss
who’s assuming loss in between Signing…..&…..CLOSING??
so when signing binders
most purchasers of RE need to have insurance! (catches many by surprise)
