Apartment insurance question

[Joel Owens]

Okay did a wrap with a seller.

Added as a additional beneficiary on the policy.

Policy comes up in March.Insurance company was fine putting me as an additional insured but then the owner of the company calls the seller a few months after closing and said his employee never should have told her that.

She doesn't have any written communication or a recorded call from the employee saying it was okay just the phone call before the closing happened.

Now the owner of the insurance company says he wants to see the seller back on title before he will renew the policy.I mentioned I could add her as additional insured and she said the lender would be required to have her as primary.

She is freaking out about the insurance issue and thinks the lender will call the loan.

She wants a quit claim back to her and an agreement form her attorney that I manage it but still own it and I can buy her out at a later date.

I told her I would not agree to this.We have completed substantial improvements to the property and have gotten out the bad element.

What I have come up with I believe will shed light on her true intentions.

I am thinking of creating a Joint Venture partnership or something similar where she is given 5% non-controlling interest in the property.

This would add her back on title and then the insurance should not be an issue to renew.I am checking with an attorney on this now.

Want to get thoughts on this issue.