Contracts

A real estate contract becomes void if:

AOne party has second thoughts after signing
BThe subject matter of the contract (the property) is destroyed before closing✓ Correct
COne party fails to complete due diligence
DThe listing expires before closing

Explanation

If the subject matter of the contract is destroyed before closing (for example, the house burns down), the contract may become void due to impossibility of performance — the specific property contracted for no longer exists as agreed. The parties would be returned to their pre-contract positions.

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