Contracts

In Louisiana, who typically bears the risk of loss if a property is destroyed between contract signing and closing?

AAlways the seller because they have title
BDepends on the contract terms — Louisiana law may allocate risk to the buyer (equitable conversion) but contracts often specify risk allocation or require the seller to maintain insurance✓ Correct
CAlways the buyer because they have equitable interest
DThe real estate broker who listed the property

Explanation

Risk of loss allocation in Louisiana depends on the contract terms. While civil law doctrines may place risk on the buyer (as equitable owner), Louisiana purchase agreements typically specify that risk remains with the seller until closing and the seller must maintain insurance.

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