Storm damage between exchange and completion

ey143

We exchanged contracts on a house last Fri and are due to complete tomorrow, Wed. A large weeping willow tree in the garden now topples over yesterday during the storm but vendor has said little at this stage (will probably find out more tomorrow but strange he has only said one line in an email at 5pm).

Unlikely the tree will have hit the house as its too far down the garden but worst case it could, depending on which way it fell, have badly damaged the summer house or the neighbouring fence, neighbouring shed etc.

This will be a question for my lawyer I know, but can anyone confirm if vendor is still liable after exchange but before completion? I have my own insurance in place from exchange but the vendor chose not to renew his insurance in July despite our lawyers insisting that it was renewed when the information came to light 3 weeks ago.

Thx.

whitewing

I believe it will be the vendor's responsibility before completion.

chirpchirp

Strangely enough this happened to me when I was the seller. On exchange you should have been advised to take buildings insurance as at that point it becomes your responsibility.

My solicitor had advised me to take insurance on my new house and my buyer hadn't been advised luckily not too much damage was done and the tree had gone through the garage.

Sorry to be the bearer of bad news but alot will depend on the calibre of the vendors solicitor and your solicitor.

moneyistooshorttomention

I certainly understood its the case that the buyer has to insure their house-to-be as from date of Exchange on it and did so myself.

Not everyone knows this. In fact, when I rang my insurance company and told them to do this I got a "dumb cluck" at the end of the phone saying that I couldn't (ie because the vendor had got it insured up till Completion and there couldn't be two parties insuring it at once). So, I rung off to get rid of "dumb cluck" and rang back later and got someone else and didn't mention vendor would be insuring it too (just in case....) and got my insurance on it arranged okay.

Don't know just which insurer would be responsible in the event that both parties have duly got the house concerned insured in between Exchange and Completion...but I never had to find out myself in the event which one of them would be paying up in the event of a claim or whether they would have split the bill 50/50.

ey143

Strictly speaking, exchange of contracts is just the agreement to complete on a certain date. A buyer is not the legal owner until completion so surely one would expect to take responsibility from this point.

The vendors are very reasonable people so I have every faith in them but I guess it all depends on the extent of the damage and cost. Hopefully no more than fence, but lets see. I will update later with the result.

Goldiegirl

I've always understood it to be that the buyer arranges property insurance from the date of exchange, so the implication is, is that it's the buyers responsibility in this type of situation

eddddy

According to the Law Society's Standard Conditions of Sale (5th Edition), the Buyer should be insuring between exchange and completion:

5. RISK, INSURANCE AND OCCUPATION PENDING COMPLETION
5.1.1 The property is at the risk of the buyer from the date of the contract
5.1.2 The seller is under no obligation to the buyer to insure the property unless:
(a) the contract provides that a policy effected by or for the seller and insuring the property or any part of it against liability for loss or damage is to continue in force, or
(b) the property or any part of it is let on terms under which the seller (whether as landlord or as tenant) is obliged to insure against loss or damage.

But many lawyers say it is sensible for the seller to continue insuring as well - just in case the buyer's insurance is inadequate. It could save a lot of hassle.

seriousDFW

moneyistooshorttomention wrote: »

I certainly understood its the case that the buyer has to insure their house-to-be as from date of Exchange on it and did so myself.

Not everyone knows this. In fact, when I rang my insurance company and told them to do this I got a "dumb cluck" at the end of the phone saying that I couldn't (ie because the vendor had got it insured up till Completion and there couldn't be two parties insuring it at once). So, I rung off to get rid of "dumb cluck" and rang back later and got someone else and didn't mention vendor would be insuring it too (just in case....) and got my insurance on it arranged okay.

Don't know just which insurer would be responsible in the event that both parties have duly got the house concerned insured in between Exchange and Completion...but I never had to find out myself in the event which one of them would be paying up in the event of a claim or whether they would have split the bill 50/50.

Apologies if this is a commonly-used term, but what is a "dumb cluck"?

chris_m

seriousDFW wrote: »

Apologies if this is a commonly-used term, but what is a "dumb cluck"?

It's where the person using the term thinks the person of whom they are speaking is stupider then them.

ey143

Yup, my lawyer has confirmed the same ie buyer is responsible for the house from exchange hence why insurance is required (which I have).

My Vendor has indicated no damage has been done, tree fallen on lawn, so no big issues apart from whose going to tidy it up - by the looks of it me

Anyone know if weeping willow trees can be used as firewood?!

Thx.

lavalamp

ey143 wrote: »

Anyone know if weeping willow trees can be used as firewood?!

Thx.

I don't know, but I have read that weeping willows can cause problems as their roots seek out water (which may be your pipes), so if it's fairly close to the house, you may be better off with it down....