What recourse does the beneficiary of a deed of trust have if the trustor fails to maintain fire insurance?
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What recourse does the beneficiary of a deed of trust have if the trustor fails to maintain fire insurance?
Asked on January 12, 2012 under Real Estate Law, California
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Typically where there is a written trust deed signed by the trustor, he or she on the back of the document agrees to maintain a policy of insurance in place on the security for the loan and if not, the failure could be deemed a breach of the trust deed making the loan due and payable after notice is given and payment not made in a certain period of time.
In most circumstances like what you have written the beneficiary pays the insurance premiums for the security and surcharges the trustor for the fees. I suggest that the recourse that you are writing about would be stated in the trust deed (usually back of it) that you are writing about.
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