Question

According to the Uniform Vendor and Risk Act, during the period between the signing of a purchase contract and the date of the closing or possession by the buyer, the risk of any loss to the property is borne by the:

a) buyer.
b) agent.
c) seller.
d) buyer and seller equally.

Answer 1

The seller typically bears the risk of any loss to the property until the closing has occurred or possession has been transferred to the buyer, as per the usual guidelines aligned with the Uniform Vendor and Risk Act.

Step-by-step explanation:

According to the Uniform Vendor and Risk Act, the period between the signing of a purchase contract and the date of closing or possession by the buyer is critical in determining who bears the risk of loss. The common practice, as indicated by guidelines similar to those in the Act, suggests that the seller usually bears the risk of any loss to the property until either the closing has occurred or the possession of the property has been transferred to the buyer. This is because the seller typically maintains ownership and control over the property during this interim period. Contracts might also contain specific clauses addressing risk of loss, such as provisions for warranties or service contracts, which can give buyers an option to have certain matters addressed in the event of problems arising before or after taking possession.