Reinstatement | Propertylogy

Reinstatement

By on November 29, 2019

Reinstatement is a term used in real estate to refer to the restoring of a property back to a prior or original state.

This is sometime necessary when a house has been sold and the new owner demands the the seller reinstates the property back to it’s empty state.

This is because the new owner refuses to spend money on demolishing existing fixtures and feels that the seller is responsible in reinstating the house.

With empty premises renovation can commence more easily. And even moving in would be less of of a problem

Property reinstatement can also often occur when commercial tenants vacate the rented space.

As such tenants often customize the premises to suit their operations, they are required to restore the premises back to it’s prior state when giving up the lease.

However, sometimes leaving things as they are without reinstatement can be advantageous.

For example, if the place was used as a restaurant, leaving the equipment and setup in tact might be desirable for a new tenant who wants to setup a restaurant as well.

Reinstatement can also be a term used to describe reverting the status of a contract back to normal.

For example, mortgages that have been overdue might be in delinquency. And payment for the amount owed reinstate the home loan back to the way it was before delinquency. The same can be said of insurance policies.


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