If you’re getting ready to sell your home in Southern California you know that it’s going to go through escrow and you may be wondering what happens if damages happen to the home while it’s in escrow.
All Parties Must Act Quickly
Although damages to a home are very rare while it’s in escrow the reality is that this can and does happen occasionally but when damages do occur all parties who are involved with the home need to respond quickly and take steps to move forward
Both the buyer and seller must check the contract to verify how they should move forward but if the damage to the home is no more than five percent, or less than five percent of the total contract value, then both the buyer and seller will most likely agree to move forward with the Real Estate transaction with the agreement that the seller will fix the damage to the home before it closes.
If the damage to the home is over five percent of the contract value in most cases buyers will have the opportunity to break the Real Estate contract and walk away from the transaction without losing any of their the money they put down as a deposit.
The Owner Must Take Action
Ultimately if you’re the owner of the home and damages occur while the home is in escrow it’s your responsibility to make sure that when the buyer officially closes and becomes the owner of the home it will be in the same condition as when they first put an offer down on it.
This information comes from our 12 years-worth of experience working in the Southern California Real Estate market.
Search for SoCal Homes for Sale
For more answers to who is responsible for repairing damages to a home while it’s in escrow, or to view Southern California homes for sale, contact Fred Sed Realty today by calling us at (800) 322-4643.
