Alabama Real Estate Practice Exam

What happens if the property is damaged before closing?

1. The contract is automatically void

2. It's not addressed in sales contracts

3. Specific terms are negotiated

4. The buyer must repair it

The correct answer is: Specific terms are negotiated

If the property is damaged before closing, the buyer and seller can negotiate specific terms to address the damage. This may include agreeing on who will cover the repair costs, adjusting the sale price, or potentially even renegotiating the terms of the entire sale. Option A is incorrect because the contract will not automatically become void, as the parties involved have the option to renegotiate. Option B is incorrect because most standard sales contracts do include provisions for property damage before closing. Option D is incorrect because it is not necessarily the buyer's sole responsibility to repair the damage, as this can be negotiated between both parties. Therefore, Option C is the most accurate and complete answer as it covers the potential outcomes if the property is damaged before closing.