What the Hail!

I mean really, what the hail? For real estate transactions in NC, per the contract, we have  a timeline to follow. First, the signed contract, followed by a negotiated due diligence period, followed by closing. So, inspection, and repairs or concessions, if any, have been negotiated? This is usually a very short time frame of a few weeks if that. What are the chances that something will majorly affect the condition of the home in that short time frame? Chances are slim, but it just happened, thanks to an “act of God”, this time known as a major hail storm.

Paragraph 11 of the NC contract:
Condition of Property at Settlement: if the Property is not in substantially the same of better condition at Closing as on the date of this offer, reasonable wear and tear expected, Buyer may terminate this Contract by written notice delivered to Seller and the Due Diligence Fee and Earnest Money Deposit shall be refunded to Buyer. If the Property is not in such condition and Buyer does NOT elect to terminate this Contract, Buyer shall be entitled to receive, in addition to the Property. the proceeds of any insurance claim filed by Seller on account of any damage or destruction to the Property.

Disclosure of material facts was The major topic of the 2022-2023 NC continuing ed course. If the seller or agent knows that the property isn’t in the same condition, they have a contractual obligation to disclose that to the buyer. But what of the seller or agent doesn’t know? What if they have moved and are not aware? I don’t have a good answer, except to hope that doesn’t happen and have an experienced team on your side who is willing to jump in and is skilled in crisis management.

Clients always ask when they can be sure that the sale will go through. My answer is always the same – when the deed has been recorded, and not until then.