What happens if the property is damaged or destroyed after I sign the purchase contract but before closing?
Typically, the purchase contract requires that the property be in substantially the same or better condition at closing as on the date you contracted to buy it (normal wear and tear excepted). If the property is damaged or destroyed by fire or other casualty prior to closing, the risk of loss is on the seller. The buyer has the option to wait for the seller to repair or reconstruct the property or to terminate the contract and recover any earnest money deposit.
Related Questions
- What happens if an improved property that I purchase is damaged between the date of the auction and the time that I close on the property?
- What happens if I decide to not continue with the purchase after making the offer or signing a Reservation contract?
- What happens if the property is damaged or destroyed after I sign the purchase contract but before closing?
