I wonder if at the moment of the closing date a buyer must have a valid insurance on a house for the sell to close in Ontario Canada? Any associated laws?
There is no requirement for insurance for a home to close UNLESS it is financed and the lender requires the insurance to advance the funds that are being borrowed. And ALL Lenders want insurance on the property with themselves named as one of the beneficiaries of the insurance if the house were to be damaged.
And the closing day is the Buyer's day and if the buyer needs insurance then that is the day they will need to have it for.
Originally posted by @Roy Cleeves :
There is no requirement for insurance for a home to close UNLESS it is financed and the lender requires the insurance to advance the funds that are being borrowed...
On the closing day the lender is getting paid by the Buyer, meaning the lender runs no risk and I don't see logic in requiring insurance. The Buyer will then be responsible for arranging insurance with the Buyer's own lender. Hmm.. Looks like there is no simple answer to this. I suppose contacting a particular lender will be best. Thanks for your thoughts.