What to do if damage occurs to a property during the escrow period?
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What to do if damage occurs to a property during the escrow period?
We purchased a home through a short sale and we paid cash. We had our inspection done approx. 10 days prior to the close of escrow. The inspection report is clean with a few very minor issues. When escrow closed we went to the house several hours later for the first time since the inspection and to our surprise, the house was flooded. Since it was a cash deal, a home insurance policy was not required to close, therefore we were waiting for the deal to close before we established a policy. It is very clear that the house had flooded during the escrow period since it was already beginning to dry up and the flooring was warped in a lot of areas by the time we got there. What can we do now?
Asked on January 15, 2013 under Real Estate Law, Nevada
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
Based upon what you have written abou I would immediately instruct escrow via a written document to not close escrow due to physical damage of the unit. Keep a copy of the transmission for future use and need. Thereafter, consult with a real estate attorney to discuss your options as to demanding repairs to your satisfaction before closing or cancelling escrow altogether.
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