It is prudent for property owners to maintain property insurance to protect against slip and fall injury claims. Coverage is especially important in cities like Philadelphia where each property owner is responsible to maintain their own sidewalk. If an allegedly injured person files a lawsuit, the City of Philadelphia is only secondarily responsible. This means that the property owner must pay the judgment. If the city contributes to the judgment, the property owner must reimburse the city for any amount paid.
Uninsured situations most often occur with estate properties, unoccupied properties, and buy and hold investments. For example, when a homeowner dies, the heirs may allow coverage to lapse. Investors who purchased properties without an occupant may also neglect to obtain coverage for various reasons.
An undefended injury claim can be catastrophic to the property owner or estate heir. Below are some of the major problems an injury case can present:
Most buyers of real estate finance their purchase through a mortgage. When a buyer mortgages a property, the lender will record the mortgage note with the local recording office. The recorded note provides notice to the world that the property is encumbered by a mortgage.
When the loan is paid off, the lender will give the borrower a document called a mortgage satisfaction. A satisfaction is the borrower’s proof that the property is released from the mortgage. The borrower can then sell the property free and clear of the mortgage.
Real estate investors often purchase properties that are occupied at the time of purchase. It some cases the investor purchased the property for the rental income and desires rent-paying tenants to remain. But some investors may wish to have the property vacated due to non-paying occupants or to renovate the property. Investors who choose to vacate a property must select the right legal process. Selecting the wrong process wastes time and money and delays the ultimate plans for the property’s use.
Removing an occupant is accomplished through either an “eviction” or an “ejectment” case. Which type of case is the right one? The answer depends on the legal status of the occupant.