Damage to House Under Contract? NOW, What?

A cold snap causes frozen pipes and water damage to a home under contract to be sold. NOW, WHAT??


Buyers, rest assured, you will have options. You could terminate and receive an earnest money refund. But let’s explore options for moving ahead. Terms of the contract say the seller is to restore the home. Be sure to exercise your right to have the property inspected after restoration by a licensed third party prior to closing.  You can accept the damaged property with an assignment of seller’s insurance proceeds, if allowed by the insurance carrier and receive credit from the seller at closing in the amount of the deductible. Ultimately, you could accept the damaged property at a reduced mutually agreeable price.


Sellers: You will have options. Most important, is to perform under the terms of the contract in an attempt to restore the property to its previous condition by the closing date or as soon as reasonably possible. File an insurance claim where applicable and see if your insurance company will assign proceeds to the buyer. The deductible becomes a credit at closing. Ultimately, it is possible to sell “As Is” at a reduced price if the buyer is open to such a negotiation.


In any case, it cannot be overstated the VALUE of an experienced real estate agent.  Trust Mauz Group, eXp Realty to elevate your experience across the network of professionals required in real estate transactions by applying our expertise and repeat business to represent you.