A buyer has a signed Contract to Buy/Sell Real Estate to purchase a property for $200,000. Prior to close, $25,000 worth of damage occured. May he/she terminate the agreement?

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26 February, 18:53

A buyer has a signed Contract to Buy/Sell Real Estate to purchase a property for $200,000. Prior to close, $25,000 worth of damage occured. May he/she terminate the agreement?

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Johanna Martin · Answer 1

Yes, When the damage exceeds 10 percent of the agreed upon purchase price

Explanation:

Whenever a property gets damaged but not demolished, almost always the issue of continuing with the agreement comes down to cost. Usually, the contract says that the sides agree to proceed with the transaction if the loss is less than 5 per cent of the agreed amount.

It is the seller's duty to repair the damage, since they retain ownership until the keys are handed over to the buyer.

The Colorado Association of Realtors states a purchaser is sometimes obligated by the agreement to buy a property if the damage does not surpass 10 percent of the selling price as long as the seller fulfills repair work by the end date.