What Happen if The Home You Are Buying Gets Damage During The Home Buying Process?

Design by Diana Walton- Houston First Time Home Buyer Specialist

Hello and welcome to Houston First Time Home Buyers Edition, formally First Home Houston (FHH), where we provide useful information to help Houston first time home buyers make the most informed decision when it comes to buying, decorating, and maintaining their first home.

Did you know that a fire or other casualty after the effective date of the contract does not release you, the buyers or the sellers from the contract just because. Let's say you’re in the process of purchasing your first home. While under contract, 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 buyer, 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.

(c) You can accept the property in it’s 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 unfolds, knowing exactly what to do will help to eliminate a whole lot of 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 contact 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