AssureClose - Insuring the real estate transaction against the accidental death of a buyer
Every year, millions of Americans buy a home,likely the largest single investment or purchasethey will ever make. !!While most of these transactions are completedwithout complication, sometimes tragedy strikesleading not only to heartbreak, but to headache.!AssureClose completes a real estate transaction ifa buyer dies accidentally, helping all partiesinvolved. !
When a buyer dies while under contract and ! the transaction is not completed,! EVERYBODY LOSES — the buyer,! seller, Realtor and brokerage. "POTENTIAL PROBLEMS"• Individuals who are unmarried but living together may not have the same rights as those in a marital relationship. Their ability to complete a transaction, access funds, etc., may be compromised."• A surviving spouse may have a limited ability to pay for the property without the deceased spouse’s support."• A builder’s outstanding debt to a lender may be compromised due to the untimely loss of a buyer.""
THE UNEXPECTED HAPPENS: A CASE STUDY"In 2009, an unmarried couple contracted to build a custom home inCharleston, S.C. On the day of closing, at 9 a.m., the Realtor received acall from the hospital. The male party to the contract had been involvedin a head-on collision with a logging truck and did not make it. Theclosing was at 2 p.m. that same day.""In addition to consoling the client, the Realtor was now faced withremedying the pending transaction. Attorneys were contacted, and thegrieving partner had to deal with a sticky legal situation."" Gerlind Sievert"In this case, even though the home was custom built with a red masterbathtub and a smoking room, the builder released the surviving partnerfrom the contract – but only after the attorneys involvement.""To this day, the Realtor is constantly reminded of what the deceasedparty to the contract kept saying – Nothing is going to happen to me. "
EVERYBODY LOSES: "A CASE STUDY CONTINUED"BUYER "The remaining unmarried partner to the contract had planned and prepared to move into her new home. Now, she had to talk to attorneys on a daily basis, return special appliances and furniture purchased speciﬁcally for the new home, ﬁnd a new place to live in because she could not afford the home she was living in by herself, and ﬁnd a new job—all while taking care of a teenager and grieving the loss of her partner."SELLER "The seller lost the sale and was forced to remove the custom features, including a tub and ﬂooring, in order to resell the home. They also had to remarket the home."BROKER/AGENT "The agent lost her commission after working with the couple for several years to ﬁnd a home. Countless hours of labor were all for naught. Furthermore, the agent s real estate company lost its percentage of the closing as contracted through the agent. ""GOVERNMENT "Because real estate transactions are taxed by state and local governments, when a home buyer passes away before the transaction is complete, both entities suffer lost tax revenue."
How It Works – Seller Beneﬁts!"• The seller purchases coverage on the life/lives of other buyer(s) in the amount of the purchase price ($50,000 minimum; $700,000 maximum).!When a covered accidental death occurs, the insurance company steps in and completes the acquisition of the property.""How It Works – Buyer Beneﬁts""After the insurance company completes the acquisition, the buyer’s heirs/representativeshave two options to avoid a potentially very messy situation:""1) "They can elect not to purchase the property from the insurance company and be promptly refunded any deposits already made under the original purchase contract, or""2) "They are given a 120-day window during which they can continue with the purchase of the property at a 10 percent discount to the previously agreed purchase price. This provides a buyer more time for grieving, getting ﬁnances in order, and enables them to make a sound decision—without pressure from a seller to close."
Buyer Bonus"• If the buyer elects to pay a small assignment fee ($75) upfront, the insurance company will assign the deed of the property over to the buyer’s heirs/ representatives at no additional cost."• Any money deposits made by the buyer will be refunded in full in the event of a covered accidental death. "• Plus, nothing is paid out of pocket – it’s all paid at closing."
The odds of hitting the Powerball jackpot? 1 in 175,223,510 (Source: http://www.powerball.com/powerball/pb_prizes.asp) "#$%&! ()*+! #),! -%.! /0)/10! 2-(10! )%! +#0! 1)304.! 0504.! .046! 7),! 8)%9$:04! #),! -%.! ;01+)49! 40! 2-(1$%2! ,$+#! ! 1)9+! )4! :01.0:! 8)--$99$)%! ,#0%! +#0.!40/4090%+!!901104!$<!+#0!(*.04!/9909!,.=!>),! -%.!9011049!,)*1:!//408$+0!+#0!0?+4!840!!;01+)4! +))&! +)! /4)+08+! +#0-! 2$%9+! 8)9+1.! :01.9! $<! +420:.! 9+4$&09=!. Which odds do you want to take?THE SCARY REALITY""Accidental death happens more often than you think.For a person born in 1999, the lifetime odds of dyingfrom an injury are 1 in 24."• 1 in 77 from transport accidents"• 1 in 69 from non-transport accidental injuries (falls,ﬁre, drowning, forces of nature, etc.)"• 1 in 211 from assault""(Source: National Safety Council estimates based on data fromNational Center for Health Statistics and U.S. Census Bureau.)!"
Insurance That Matters"Without blinking, Realtors pay more than $80 every year to insure againsterrors and omissions on the real estate contract. Why wouldn’t you cover eachreal estate transaction against the possibility of tragedy during your transactionand the loss or delay of your commission? ""AssureClose coverage provides a brand new solution to a vexing problem thathappens more often than you may think. ""How can you avoid the havoc?!
EVERYBODY WINS" BUYER "Buyers are given an opportunity to walk away from an agreement to purchase. If they elect to proceed, they get the property at a discount. Additionally, for a small fee, a buyer can rest assured that the property being purchased will be owned without debt by the surviving spouse, family or estate."SELLER "Sellers are assured that the property will be sold. It eliminates the chance that a closing will not occur due to lack of funds or ability to obtain a mortgage. "BROKER/AGENT "Brokers and agents have signiﬁcant overhead in the listing and selling of a property. By assuring a sale, the commissions that are to be earned from a sale are protected. ""
Some Speciﬁcs" Coverage is for accidental death only." Premiums are collected at the time of closing. No Buyer must be an individual or couple – no companies monies are due up front. Coverage does not go into or entities." effect until all parties agree to the deal. The closing agent Face amount is equal to the purchase price of ! will remit the premiums immediately ! the property being purchased ($50,000 minimum; after closing. " $700,000 maximum)." Coverage is sold in four time periods of coverage:" If a valid claim is made due to the untimely death of an 1. Up to 30 days" insured, the proceeds of the policy will be paid to an 2. Up to 45 days" independent ﬁduciary. This ﬁduciary will be named in 3. Up to 60 days" the separate agreement or addendum, for the sole 4. Up to 90 days" purpose of completing the pending real estate Note: Coverage periods longer than 90 days or amounts transaction." larger than $700,000. (@-)*%+9!()50!ABCCDCCC!,$11! The surviving spouse, family and/or heir(s) can 40E*$40!20D!)88*/F)%!%:!"4501!G1%9!$%<)4-F)%6! complete the transaction and take ownership of the H)4!504.!1420!-)*%+9D!)504!AI6J!-$11$)%D!9)-0!-0:$81! property with the proceeds of the insurance policy in *%:04,4$F%2!$9!40E*$40:6K! hand. If the surviving spouse, family and/or heir(s) do not want the property they can complete the transaction and relist the property for sale. "
Policy FAQ’s" How do you buy the policy? !" By registering on our website. By registering, the agent will be able to generate customized quotes, download appropriate addenda and upload completed documents. Agents can register with AssureClose at www.AssureClose.com. All premiums and fees are paid at closing. " ! What is the general price of the policy?! Based upon the average sales price of a home in America of $200,000, with an average 45 day closing period, the cost of a policy is $38." " Please visit our FAQ page at our website towww.AssureClose.com! view more FAQ’s. "
Why wait? "• We assure real estate transactions close in case of loss of a buyer during the settlement process, helping everyone to avoid potentially lengthy litigation, loss of a sale and costly delays.#"• Contact us today to learn more or visit our website to view our FAQs, get a quote, or read our blog.#"" AssureClose.com! Daryl Trawick-President, Trawick International"! "251.338.1618! Toll free:"855.714.9995!