Contracts

Vermont's 'risk of loss' provision in a purchase contract addresses what happens if:

AThe buyer loses their job
BThe property is damaged or destroyed between contract signing and closing✓ Correct
CThe market value drops before closing
DThe seller loses their mortgage

Explanation

Risk of loss provisions specify who bears the risk if the property is damaged or destroyed between contract execution and closing — typically the seller retains risk until the deed is delivered and title passes to the buyer.

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