Understanding What Happen if Your New Home Get Damage During The Home Buying Process?

Image by Diana for firsthomehouston.com

'Did you know that a fire or other casualty after the effective date of the contract does not release you, the buyers or the sellers from the contract just because. Let's say you’re in the process of purchasing your home. While under contract, fire destroy part or most of the home. The sellers will have until closing to bring the property back to its previous condition.

However, if the sellers fails to do so, due to factors beyond their control, you, the buyer, have three options. You can (a) terminate the contract and your earnest money will be refunded back to you.

(b)You can grant the seller up to 15 additional days to restore the home, and the closing date will be extended as necessary.

(c) You can accept the property in it’s damage condition providing the seller assign the insurance proceeds over to you, if that is permitted by the seller's insurance carrier. In addition, you the buyers, will receive credit from the sellers at the closing for the deductible amount under the seller's insurance policy as well.

This is not something anyone want to experience, however, life does happen and when it unfold, knowing exactly what to do will help to eliminate a whole lot of stress and worry, while taking the steps necessary to resolve the issue in a placid manner. Just a bit of FYI.

If it matters to you, it matters to us. We are always looking out for your best interest. As always, thank you so much for stopping by. We are here to help. Until next time...Diana