Under Alaska law, which party in a residential real estate transaction bears the risk of loss if the property is damaged before closing but after the purchase agreement is signed?
Why The party who possesses the property at the time of damage Is Correct
Answer D: The party who possesses the property at the time of damage
Exam Tip: Contracts
Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.
Key Contracts Terms in This Question
People Also Study
Related Alaska Questions
- 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?Contracts
- Under the Alaska Uniform Vendor and Purchaser Risk Act, if a property is materially damaged after the purchase agreement is signed but before closing, the risk of loss falls on:Contracts
- An Alaska purchase agreement states that the buyer's offer will expire at 5:00 PM on Friday. The seller signs the acceptance at 4:45 PM on Friday but it is not emailed to the buyer until 5:30 PM. The contract is most likely:Contracts
- In Alaska, a purchase agreement is modified by both parties through a signed addendum. This addendum:Contracts
- In Alaska, an 'indemnification agreement' in a real estate closing typically requires one party to:Escrow & Title
- The Alaska real estate licensing exam consists of how many questions, and what is the allotted time?Alaska License Law
- In Alaska, the closing disclosure (CD) must be provided to the borrower at least how many business days before closing?Escrow & Title
- A mechanic's lien in Alaska must be filed within how many days of the last date of work or material delivery?Escrow & Title
Key Terms to Know
A legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Math Concepts
Study This Topic
Practice More Alaska Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Alaska Quiz →