Home was left to three siblings. Sibling #1 wants to purchase the house for $50,000 (appraised value $183,000). $40,000 goes to #2 and $10,000 to #3. At this point the #1 has drawn up a Contract of Purchase stating that #2 and #3 will sell to #1 plus husband. In a section it states: RISK OF LOSS. All risk of loss or damage to the Property by fire, windstorm, casualty, or other cause, or taking by eminent domain is assumed by Sellers until Settlement. In the event of substantial loss or damage to the Property before Settlement, Purchases shall have the option of either (1) terminating this Contract and recovering the Deposit, or (2) affirming this Contract, with appropriate arrangements being made by the Sellers to repair the damage, in a manner acceptable to Purchasers, or Sellers shall assign to Purchasers all of Sellers' right under any applicable policy or policies of insurance and any condemnation awards and pay over to Purchasers any sums received as a result of such loss or damage.I feel uneasy accepting responsibility of loss as a seller. Shouldn't this contract be between The Estate and #1? After sale of home, shouldn't the Estate then disperse funds to siblings #2 and #3. So, if damage should occur before the sale of the home, the burden would fall on the estate?
Thank you for your question. Be sure to go ahead and bookmark www.nateanswers.com for future questions.You are correct. The contract should be between the estate and the buyer. There is no reason for it to be between the other heirs and the Heir who wants to purchase the house. Keep in mind, this is a fairly standard provision in any sales contract. However, that still doesn't change the fact it should be between the estate and the Sibling #1, as opposed to between Sibling #1 and other two heirs.Please remember to only rate my answer when you are 100% satisfied. IF you feel the need to rate "Poor Service" or "Bad Service", please stop and reply to me via the REPLY TO EXPERT button with the issue you have. I am not paid unless I get a rating of 3 to 5 Stars/Smiley Faces. If I have helped you with your question, please give me an appropriate rating so that I get credit for helping you. Thank you, Nate
Over 8 years of legal estate experience.
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