As Bill mentioned... have the tenant get a renters policy and request to be named as an additional insured with a 10 day notice of cancellation so you are notified if coverage lapses.

This way you will be notified if their coverage lapses.

Since hazard insurances lapses every year a lender must continually get updated declaration pages to ensure coverage.

A person's life isn't worth my momentary inconvenience and my insurance would cover major damages.

Kelly I looked at recruiting agent for my firm years ago.At one point I did an active campaign and had about 45 agents at my firm at one time.I have found most agents feel entitled or won't follow the steps you tell them to be successful.They will skip some steps because they are lazy and want to "get rich quick" like the rest of the population which is why so many fail.If I add an agent say on a 70/30 split then I have to take time from my own deals where I make 100 percent to make 30 with them.The training and getting over their mindset takes so much more time than me doing my own deals.This is why I have only 7 agents right now.I got rid of the rest.Many companies try the 100 percent model but you get either new agents having no experience,part-time agents who are rusty,child support demands,irs tax liens,license lapses for education and or non-payment of dues etc.It is a huge headache to keep up with for a low return.If you go the other route you can train new agents for a fat split before they leave the business or train a select few agents that you want to feed leads to on your team.I just focus now on my own investment purchases and my own commercial listings.

If property insurance lapses Lenders can do what's called "forced place insurance" on your mortgage.Generally the lenders buy the Cadillac plan that covers everything and escrows the payment into the total mortgage payment due.It is much cheaper for the borrower to have their own insurance then for the lender to force place it.He could always accelerate and foreclose depending on how costly and time consuming that is for that state.I would think foreclosing and accelerating the note would be the same motivation as when a tenant tells you a few more days and you will get the money and you file eviction and the money magically appears.It seems if he sends the foreclosure and default notice the buyer will know they are serious.

Also, a great questions to ask is how often do the pipe breaks in the HOA and do they ever experience long lapses of no hot water.

In a "lease option", there is an option to purchase - that option can either be exercised or allowed to lapse; as a result, there is no obligation to make the purchase.

Sale of the property, waste, property tax default, lapse of insurance, fraud upon application...lots of info in the note and loan docs.

Is this something I'm worrying about because I'm a realtor, and if I let my license lapse, that would no longer be an issue?