L/O's on Fire! - Posted by A.T.

Posted by WilliamGA on July 01, 2000 at 20:19:31:


When you are in a sandwich L/O deal, you should make sure that the owner adds you to the insurance as an additional insured.

It is customary for the owner to maintain a landlord’s insurance policy on any property that he is leasing but if it makes you feel better, you may want to just remind him of that.

As for your T/Bs, you should suggest to them that they obtain renter’s insurance to cover their personal belongings. This way, everyone is covered in case of loss.

Good Luck!


L/O’s on Fire! - Posted by A.T.

Posted by A.T. on July 01, 2000 at 20:07:10:


What if I am doing a sandwich l/o, where I am the mid-lessor, and my tenant burns the house down? (Accidentally of course). Is the person from whom I am sub-leasing (the original owner) required to maintain any type of insurance? Am I required to obtain insurance? What if he let his insurance lapse under the pretense that all responsibity for the house is now in my hands since I told him I am “solving his problem”.

Just seems like an awfully precarious position to be in. “Controlling” a property that I neither own nor live in. All criticism and comments welcome.

Re: L/O’s on Fire! - Posted by The Donald

Posted by The Donald on July 02, 2000 at 08:51:17:

Make sure your Options state that the other party is responsible for maintaining insurance, and that in the event of any damage, you may either take the proceeds and continue the transaction, or cancel the deal and receive your money (including any consideration) back.

If your Option (or memorandum/notice thereof) is recorded, then your Assets are covered.