Please repeat after me: insurance does not protect you from liability...it only pays the litigation costs and damages once you've already been found liable/negligent and have a judgment in your personal name (if you didn't change title on that rental property and a cause of action).

I checked the county website and a negligable amount of taxes is owed.

My client was on the ball today, so here’s the recap (sanitized to protect confidentiality):- lender said transfer would absolutely trigger the clause (not a surprise to me), and that they wouldn’t allow it (surprising to me that it was such a hard line)- client’s contact at another lender said he sees this often, where folks risk the acceleration under the due on sale clause, a d transfer anyways, and the bank doesn’t find out- this other contact said they just make people transfer back before allowing them to refi - outcome is an hour of lawyer time to draft deed to transfer and LLC written action to accept the property, plus deed tax (negligible if your attorney does it right in Mm), and recording fee ($46 I think?)

Is this fraud or just negligence?

Strict liability simply means you do not have to prove negligence.

Under the circumstances, I'd say if the bought a new car after they applied for a loan you may have recourse as they would be more aware of having to qualify and were negligent or intentionally blew the deal as they changed their minds.

No-one's forcing you to spend it ahead of needing that "little room", and interest rates are still negligible really.Wouldn't you like the flexibility, if:- an unexpected opportunity to be the FIRST off the block - to snap up your NEXT no-brainer "B"?

They're pretty similar or the differences are negligible compared to other considerations.Your specific location matters much more.

However, insurance is limited because it only protects you from one type of liability: accidents/negligence.

As a rental, you want to spend the least as possible while remaining responsible (not negligent in repairing items that should be fixed or replaced, especially those that could have a potential for injury)When you liquidate, then do teh major rehab to get top dollar from an end buyer.