RISK of Loss (equitable Conversion) Flashcards Preview

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Flashcards in RISK of Loss (equitable Conversion) Deck (15):
1

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

2

Minority Rule (Mass)

the destruction of the property constitutes a failure of consideration and therefore, the vendor absorbs the damage

3

majority view follow

eqiutable conversion

4

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

5

Casaulty insurance can be ______ or _______?

all risk or named risk

6

all risk

covers everything that is not expressly excluded

7

named risk

only covers specified problems

8

what must the insured have before an ins co. will pay??

an Insurable Interest.

9

insurable interest?

sufficient ownership in the property so that the casualty causes an economic loss to the insured.

10

whoever has the ___ __ ___ has an insurable interest

risk of loss

11

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

12

Vendor purchased the policy, is he credited that?

vendor keep the proceeds without crediting the purchaser

13

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

14

risk of loss

who's assuming loss in between Signing.....&.....CLOSING??

15

so when signing binders

most purchasers of RE need to have insurance! (catches many by surprise)