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OREF 054 – Language Change

OREF 054 – Language Change

3
1 year agoopen2

From personal and professional experience, I would advocate a change in the Occupancy After Closing Addendum language, specifically, line 86.

Allowing the sellers to rent back is a common occurrence but I am also aware that securing a renter’s policy is often not done or completed after signing but before COE. Unfortunately, once docs are signed, funding cannot be stopped for this reason.

I would suggest language be changed from “At or before Closing…” to “Three (3) business days before closing…”

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  1. Great idea Peter! I’ll bring this to the Forms Committee for further consideration. Thank you.

  2. On the Agreement to Occupy After Closing form, we are finding that most insurance companies will only offer liability coverage up to $500,000 and the default is $1,000,000. I know the default used to be $500,000. This has caused an issue on several of our transactions this year.