Contracts
A buyer in Alaska submits an offer that the seller accepts. Before closing, a natural disaster destroys the property. Under most Alaska purchase agreements, this is:
AThe buyer's risk; the contract must be honored
BThe seller's risk; the contract may be voidable by the buyer✓ Correct
CA situation covered by the seller's homeowner's insurance only
DGrounds for the broker to retain the earnest money
Explanation
Most Alaska purchase agreements follow the Uniform Vendor and Purchaser Risk Act concept: if a material part of the property is destroyed before closing through no fault of either party, the buyer may void the contract and recover earnest money.
Related Alaska Contracts Questions
- An Alaska seller receives two offers simultaneously. The seller's BEST course of action is to:
- Under the Alaska Uniform Vendor and Purchaser Risk Act, if a property is substantially destroyed after the contract is signed but before closing, and neither party is at fault, who bears the loss?
- In Alaska, time is of the essence in a purchase agreement means:
- What is the legal effect when a buyer and seller sign a purchase agreement?
- An addendum to a real estate contract:
- An Alaska purchase agreement contains a 'liquidated damages' clause with the earnest money set at $25,000 on a $500,000 purchase. If a court were to review this clause, the court would likely find it enforceable if:
- Which of the following best describes a 'voidable' contract in Alaska?
- An Alaska purchase agreement includes an 'as-is' clause. This provision means:
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