Upon flood, storm, wind, hurricane, fire, earthquake, or other whole/partial damage to the Property, the buyer or the seller have a window where either can timely/properly terminate the deal.

If neither the buyer nor the seller timely/properly terminate the deal within the window, then the seller is obligated to repair the damage or provide an adequate amount of cash or insurance proceeds.

Obviously and per the SCR300/310 agreement, if the buyer or the buyer’s inspectors caused the damage, then that is a different situation and the buyer and or the buyer’s inspectors may be liable to the seller for damages.

15. FIRE OR CASUALTY OR INJURY: In case the Property is damaged wholly or partially by fire or other casualty prior to Closing, Parties will have the right for 5 Business Days after Notice of damage to Deliver Notice of Termination to other Party. If Party does not Deliver Notice of Termination, the Parties proceed according to the Contract and Seller is to be responsible to (1) repair all damage, (2) remit to Buyer an amount for repairs, or (3) assign to Buyer the right to all proceeds of insurance and remit any deductible amount applicable to such casualty. If Buyer or Inspections caused the damage, Buyer is responsible for indemnifying Seller for damages. Brokers and Parties should ensure that they are protected by appropriate risk management strategies such as insurance.

Posted by : Byron King on 9/18/18 (This information is only accurate as of 9/18/18. You must contact SCR for updates and changes to this information after 9/18/18 as laws and regulations may change over time. SCR 803-772-5206 or email info at screaltors.org)