Who Is Responsible for Storm Damages When a Home Is Under Contract?

Who Is Responsible for Storm Damages
the Buyer or the Seller?

When a home is under contract, and a St. Louis storm blows through causing damage, who is responsible for storm damages and making things right? This is an unsettling question for the Buyer who just got an accepted contract on the now damaged future home, and the Seller whose home just happened to be in the wrong place at the wrong time.

What Does the Contract Say?

The Residential Sale Contract is what is used by Realtors in our area. It spells out who is responsible in damage situations.

Paragraph 14 titled LOSS states the following:
“Risk of loss to the improvements of the property shall be borne by the Seller until title is transferred.

If any improvements covered by this contract are damaged or destroyed, Seller shall immediately notify Buyer or selling broker in writing of the damage or destruction, the amount of insurance proceeds payable, if any, and whether Seller intends to restore the property prior to closing, to its condition at the time of the contract.”

If the damages happen just a few days before the closing both parties will need to negotiate how the matter will be handled within the guidelines of the contract and advise from their Realtor.

The Solution? – Pray for a mild spring for both Buyers and Sellers sake!

Weirdness and Unusual Happenings in Real Estate

One thing we have learned after many years in working with Buyers is this; No Two Real Estate Transactions Are Ever the Same

Buying a home is not like buying a new spring wardrobe at Kohl’s. People are involved, people can behave oddly at times (with the exception of our readers of course) and stuff just happens.
It helps to have someone on your side at that time who has experienced the unusual. We have been Exclusive Buyer Agents for more than a decade only working with Buyers, and we have seen a lot, so you might want to chat with us before your begin your home buying journey. Before wrapping up this post I’d like to share with you a little slice of life …

Fences and Neighbors

Last year I received an email about a post we shared about the importance of a survey:

Mr. Richert, I am a professor here in Norfolk, VA and was searching for an example to show my students the importance of a boundary survey and I happen to find yours. I very much appreciate the story and believe it is worth sharing to students.

The original post he’s referring to is based on a true story that happened with one of our Buyers who encountered a “fence problem”.

Savvy St. Louis Buyers Learn the Value of a Survey