Real Estate Investor · Ft. Lauderdale, FL · Member since 2012 · 135 posts · 4 votes
I am in the process of closing on a property and was setting up the insurance with my agent. The policy requires a 4-pt inspection on the property and I have found that the electrical box needs to be upgraded.
My question is can I or should I make this repair prior to the closing so my policy can start on the closing date or should I wait to close? Also, to make it more interesting there is a tenant in place already.
Let me know if there is a common way to approach this scenario. Thanks!
If Everything else is set, title insurance, etc. , I wouldn't have any concern about doing it. Might be easier than adjusting price and having seller do it.
I would have the insurance company setup the inspection as soon as possible. They might not even find the defect and you could wait until after closing. If they do find it, they can probably provide some insight on the situation. I would think the worst case scenario would be they would require a follow up inspection.
Also, if they do find it and you do not have time to get it repaired before closing, perhaps they can provide a different (more expensive policy) just to get the property closed and it can be adjusted after closing and the repairs are made.