Escrow & Title
A NH property under contract is damaged by fire before closing. The standard NH purchase and sale agreement addresses this by:
AAutomatically canceling the contract with all deposits returned
BIncluding risk of loss provisions that typically assign risk to the seller until closing and give the buyer options if significant damage occurs✓ Correct
CRequiring the buyer to close regardless of the damage
DTransferring the loss to the buyer's insurance immediately upon signing
Explanation
Most NH purchase and sale agreements include risk of loss provisions addressing what happens if the property is damaged before closing. Typically, the seller bears the risk of loss until closing.
People Also Study
Related New Hampshire Questions
- A NH purchase and sale agreement specifies that the closing will occur 'on or before June 30.' If the buyer is ready but the seller cannot close until July 5 due to a title issue, the buyer may:Contracts
- New Hampshire uses a 'Purchase and Sale Agreement' as the primary real estate contract. For it to be valid, consideration must be:Contracts
- What is the purpose of an 'earnest money' deposit in a New Hampshire purchase and sale agreement?Contracts
- In a NH condominium purchase, buyers must receive which document before signing the purchase and sale agreement or upon receipt:Escrow & Title
- Under a NH purchase and sale agreement, the seller warrants that at closing the property will be delivered:Contracts
- A listing agreement calls for a 6% commission on a $490,000 sale. The listing and selling brokers split the commission 50/50. How much does the listing broker receive?Real Estate Math
- A NH buyer who closes a home purchase on October 15 will receive a credit on the closing statement for prepaid interest from October 15 to October 31. This is called:Finance
- A NH seller needs to net $340,000. They owe $185,000 on their mortgage and expect $6,000 in closing costs plus a 5% commission. What is the minimum sale price?Real Estate Math
Key Terms to Know
Title Insurance
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Closing CostsFees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
Math Concepts
State-Specific Concepts
DRE Regulation
Study This Topic
Practice More New Hampshire Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Hampshire Quiz →