What to do if Fire Damage the Home You Are in the Process of Buying
Hello and welcome to Houston first time home buyers edition. You and your Realtor searched and found the prefect home for you and your family. Your Realtor submit your offer and it was accepted. The contract is signed, earnest money and option fee was delivered to the title company. A week later, the seller’s Realtor, call your Realtor about a fire that caused severe damage to the home you are in the process of buying. What now?
Did you know that a fire or other casualty, after the effective date of a contract does not release you, the buyers or the sellers from the contract just because? Let's say you are in the process of purchasing your first home and fire destroy part or most of the home. The sellers will have until closing to bring the property back to its previous condition.
However, if the sellers fails to do so, due to factors beyond their control, you the buyers, have three options. You can (a) terminate the contract and your earnest money will be refunded back to you (b) you can grant the seller up to 15 additional days to restore the home and the closing date will be extended as necessary or (c) accept the property in its damage condition providing the seller assign the insurance proceeds over to you, if that is permitted by the seller's insurance carrier. In addition, you the buyers, will receive credit from the sellers at the closing for the deductible amount under the seller's insurance policy as well.
This is not something anyone want to experience, however, life does happen and when it unfold, knowing exactly what to do will help to eliminate stress and worry while taking the steps necessary to resolve the issue in a placid manner.
As always, thank you so much for stopping by. Remember, if you are thinking of purchasing your first home, please give us a call or Email us. We are here to help. We have been helping Houston first time home buyers since 2011 and we can help you. I hope you have an amazing day. Until next time...Diana
