Am I financially responsible for damage to a home that I’m selling?
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Am I financially responsible for damage to a home that I’m selling?
I have been under contract with a particular buyer for 2 months now. I have provided them with 3 extensions for closing date thus far. Their lender still had not approved their financing as of the latest closing date which was yesterday Thursday. New Link Destination
day Friday I finally received the closing docs to sign. I am in another state so the docs would have to be overnighted. My agent has also sent me another extension for closing as written up by the buyer’s agent. The buyer’s won’t take official posession until Monday now and a hurricane is due to make landfall near the house today Friday. Are there any
protections provided to me in case of hurricane damages while the closing docs are in transit? The docs from both buyer and seller will be signed and witnessed by notaries today. However we are not technically under contract anymore unless I sign yet another extension which seems like it may make
more of a legal mess for me regarding insurance should i have to make claims due to hurricane damage as the buyer’s repeated delays seem to have left me holding the bag while they sit by and wait to see if the hurricane damages the property.
Asked on August 25, 2017 under Real Estate Law, Texas
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
You have agreed to extentions when you could have refused to do so and treated the contract as breached by their violation in not closing; since you agreed to the extensions, you cannot now complain about them, but are held to the consequence of them.
That consequence is, until the moment of closing, you are the owner of the home. That means that *you* are responsible for all damage to the home prior to closing. If there is any hurricane-related damage, you will have to fix it or provide the buyer some mutually agreeable credit or compensation. If you don't, the buyer could either walk away from the sale or sue you for the cost of the repairs.
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