Expert: Dick Dennis - 10/30/2010

Question
I recently sold a rental home contract for deed. The gal purchasing the house got her own homeowners insurance and I dropped the insurance that i originally had. My question is, if someone was hurt at the house and wanted to sue, can they sue me, as well as her insurance, since I am actually the 'owner', or am I exempt from a law suit.
  I was told this was a lawyer question but Allexperts didnt have that category.

Answer
Yes, you're right, Steve. It is a lawyer question. But I can answer the best I can after 41 years in this business: Anybody can sue anybody. The judge or the plaintiff's attorney would decide if the suit is valid.

Anyway, the way you presented your question is a big question in the first place, Steve. You said, you sold a rental home contract for deed. That tells me you sold the house's sale paperwork for that rental home. In that case, no insurance is even necessary for paperwork.

(The following paragraph was added when I realized you may have meant that you sold the property WITH a contract for deed, in which case you are still technically the owner of record). Yes, you would also be liable since the property technically belongs to you and both of you may be liable. Unless she signed a document that releases you from all liability. But a good attorney would not let that pass by.

But if you are referring to the property purchased, the owner at the the time of the event that would cause the suit would probably be the person to sue. It is possible to be sued for something in/on the house and not even own the house because at the time of ownership the owner at that time was negligent and may have been responsible, like for example, if he added something onto the house without a permit. The new owner could sue the old owner in that case. As long as he had insurance at that time the insurance company would probably cover him. But if you anticipate a legal problem with the sale of that house, Steve, I strongly recommend consulting with a real estate attorney.

I wish you well.

Dick Dennis
dixiedee13@aol.com