The CLUE Report in Real Estate What You Need to Know
The CLUE report in real estate provides potential buyers with the insurance history of a property. Life seems to have more complications every year and this can be the same in a real estate transaction. In the first place, a Comprehensive Loss Underwriting Exchange (CLUE) report includes dates of any claims and any involving insurance companies. Also, it tells you the type of policies that were in effect and whether the loss has a relation to a catastrophe such as a hurricane. Of course, it will cite the location of loss, as well as amount of payment and cause of the loss.
Time Periods and Who Can Order the Report?
As a matter of fact, CLUE reports go back five years into the history of a property. By the way, it is standard industry practice to purge losses over five years old. So, who can order the CLUE report? Only the owner of a property or the insurer can request a CLUE report. For instance, if you are the buyer only the seller can request the report.
What is the Importance in a Real Estate Transaction?
A CLUE report can provide loss information that may make a buyer think twice about purchasing a certain home. With this in mind, if the loss was due to water damage, mold becomes a concern and the buyer may pass on the deal. If there is discovery of mold and remediation was done a mold remediation certificate should be given as proof. After all, it is important to realize that the seller is not required to give the loss history or the seller property disclosure.
Is There an Advantage to Sellers Providing the Report?
Providing the CLUE report is one more way to give the potential buyers the peace of mind and confidence to move forward with a purchase of a home. Especially, if the report shows a clean bill of insurance health.
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