car crashes through house after exchanging contracs

Plum1

I am selling my late fathers house, we exchanged contracts at 2.57 pm, but not completed then at 4pm a car went through the front of the house demolishing the windows and porch, the house is insured for building cover only, can you tell me where I stand. Is the house still mine?

J_i_m

That's more than unlucky.

In all seriousness and I'm sure someone will correct me if I'm wrong but I think you answered the question yourself.

You said it was not completed, then persuambly (if it still isn't completed) then the house is still yours.

I imagine your solicitors may be better qualified to offer a more realistic view though.

Werdnal

Plum1 wrote: »

I am selling my late fathers house, we exchanged contracts at 2.57 pm, but not completed then at 4pm a car went through the front of the house demolishing the windows and porch, the house is insured for building cover only, can you tell me where I stand. Is the house still mine?

OMG what bad luck!

I think you need to get your and your buyers solicitors on this one. If you have not completed, the buildings insurance will still be valid, but I would assume, your buyers will be reluctant to continue under the circumstances!

However, I suspect your buildings insurance may be reluctant to cover it at it was the driver's fault. Was the driver insured? Could you instigate a claim on them?

Ulfar

You would need to claim on your insurance and they will claim against the drivers insurance. It is your responsibility to put the property back into order as you have not completed and it is your property still.

The buyer is entitled to complete with the property in the same condition as when you exchanged contracts.

Catherine_Johnson_2

Plum1 wrote: »

I am selling my late fathers house, we exchanged contracts at 2.57 pm, but not completed then at 4pm a car went through the front of the house demolishing the windows and porch, the house is insured for building cover only, can you tell me where I stand. Is the house still mine?

It seems somewhat strange that your first thought would be to post a question on the Money Saving Expert website rather than asking your solicitor who is conducting the sale.

pinkteapot

I would have thought that ultimately the car insurance would pay under the third party liability (though it may be that the buildings insurance pays out then reclaims from them).

Try posting this on the Insurance board too.

One problem you may encounter is that most mortgage companies require a buyer to have buildings insurance in place from exchange. From exchange, the buyer has to buy the property regardless of what disaster happens in the meantime, so they need the insurance.

If the property is currently covered by both you and the buyer, you may get into a situation where both insurance companies try and say the other is liable. Just something to look out for.

Werdnal

Catherine_Johnson wrote: »

It seems somewhat strange that your first thought would be to post a question on the Money Saving Expert website rather than asking your solicitor who is conducting the sale.

Struck me a little strange aswell, almost too "trollish" to be true, but as the note says, we must be nice to newbies!

OP, this accident would very likely be newsworthy - is there a local paper, local news station running the story it, just so we can have a nose?

Plum1

Thanks for your replies,Yes the car driver is insured and it is in the hands of the solicitors. I am at home waiting to hear from them, and just posted this message while I am waiting. Thanks again for your thoughts

ivavoucher

I always thought it was the purchasers responsibility to have insurance from the moment contracts are exchanged.

hazyjo

ivavoucher wrote: »

I always thought it was the purchasers responsibility to have insurance from the moment contracts are exchanged.

Was also wondering about this. Seller and buyer should both be covered.

When's completion set for?

Jx

Plum1

Completion was going to be the following day, but just heard it will be after it is repaired, probably at the end of the month now, and after a structural surveyor gives the the thumbs up. Who knows:)