14 June 2011 by

Insurable Interests

Following on from my previous blog regarding the risk in the property passing to the buyer on exchange, the question arose (thanks to one inquisitive reader) whether when the risk in the property passes to the buyer on exchange, does the buyer then have an insurable interest in the property from exchange and therefore have the ability to be able to insure the property?

It should at this point be noted that having an insurable interest in a property and also obtaining the risk in a property are two separate points.

Firstly we should look at who has an insurable interest in a property. To have an insurable interest in a property you must have a proprietary right to the property. The buyer obtains a proprietary right to the property on exchange. This is due to the fact that from exchange the seller holds the property on trust for the buyer pending completion. The seller remains in occupation of the property and is therefore still the legal owner of the property and the buyer becomes the beneficial owner of the property.

Moving on to the risk element. As mentioned in my previous blog the risk to damage and destruction of the property now passes to the buyer on exchange and as a result of this the buyer will be forced to complete the purchase if the property is damaged between exchange and completion. However due to the fact the buyer will have the benefit of having an insurable interest in the property from exchange they have the option to claim on their insurance to rectify the damage even before they have gained physical ownership and legal occupation of the property.

9 June 2011 by

Who’s the Daddy

The use of DNA paternity testing in Children Act Proceedings has become very common in cases where there is some doubt or suggestion that the father is not the child’s biological parent.

13 June 2011 by

Executors vs Administrators

A person who administers an estate is known either as an executor or administrator. An executor is appointed in a Will; if there is no Will then an administrator must be appointed by the Court.

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