Contracts

A real estate contract becomes void if:

AThe buyer gets cold feet
BThe subject matter is destroyed (e.g., the house burns down) before closing✓ Correct
CThe listing agent changes firms
DThe buyer's lender denies the loan

Explanation

Destruction of the property before closing can void the contract or allow the buyer to rescind under the doctrine of impossibility. Most purchase contracts address this in the risk of loss clause.

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