Contracts

Indiana purchase agreements typically provide that if the property is destroyed before closing:

AThe buyer must still close
BThe contract is voidable by either party and earnest money is returned to the buyer✓ Correct
CThe seller must rebuild at their expense
DThe buyer assumes all insurance proceeds

Explanation

Most Indiana purchase contracts include a casualty loss provision: if the property is materially damaged before closing, the buyer may terminate the contract and receive a refund of earnest money.

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