Contracts
A Texas home under contract is damaged by a storm before closing. Under the TREC contract's property condition provisions, who bears the risk of loss?
AAlways the buyer since they signed the contract
BThe seller retains risk of loss until closing and delivery of possession; casualty loss provisions in the contract address the remedies✓ Correct
CAlways the listing agent's brokerage
DThe title company's insurance
Explanation
Under TREC contracts, if the property is damaged before closing, the seller generally bears the risk of loss. The contract provides that if damage is repaired to the buyer's satisfaction, the closing proceeds; if not, the buyer may terminate and recover the earnest money.
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