Contracts

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?

AThe buyer, because the contract is already signed
BThe seller, because they still hold title✓ Correct
CThe loss is split 50/50 between buyer and seller
DThe title insurance company

Explanation

Under the Uniform Vendor and Purchaser Risk Act, which Alaska follows, the seller bears the risk of loss if the property is substantially destroyed before title or possession passes to the buyer. The buyer may rescind the contract and recover their deposit.

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