What If The Palo Alto Home Is Destroyed Before I Close Escrow?

What If The Palo Alto House is Destroyed Before I Close Escrow 

I was writing an offer with a client yesterday and for once, this buyer was pleasantly surprised by a provision of the California Real Estate Purchase contract.  We were discussing contingencies and deposits and what happens if.....

I explained that she would put a deposit in escrow and then start her inspection process. If something came up during the 10 day contingency period that she was not comfortable with, or that the seller refused to fix or give her a credit for, then she could drop out and get her deposit back. However, if she removed her contingency and then did not go through with the sale her deposit would be at risk. 

My client's daughter then said, " So if the house is destroyed by an earthquake, and you do not want to by it you could lose your deposit."  They were so happy to hear that no, that was not the case. There is another provision in the contract which says if the house is substantially damaged then the buyer can elect to cancel the contract or take the insurance proceeds and rebuild themselves. 

This fact made my buyers happy as it really eliminated a big risk for them.  Basically even after the contingencies are removed, if the house is substantially damaged by an earthquake, fire, flood, etc., the buyer can cancel and not loose their deposit.

Unfortunately when you buy or sell a home in Palo Alto things can happen that are out of everyone control. Homes burn down, get flooded, and even occasionally get damaged by earthquakes. If this happens during that short period of an escrow, especially the part of the escrow when the contingencies have been removed, there is a remedy that relieves the buyer of the responsibility of purchasing that home.

I wonder if any homes on the east coast were in escrow and damaged by the quake last summer?

If you have any questions about buying or selling a home in Santa clara or San Mateo county please feel free to contact me.

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

D.R.E.  01191194

Marcy Moyer Keller Williams Realty Palo Alto, Ca. Specialist in Short Sales and Trust and Probate Sales

Palo Alto Home Buyers, Don't Let the Rain Stop You From Looking at Homes

Everyone likes to to look for homes when it is sunny.  Open houses during the spring and summer in Palo Alto are always crowded.  Some people think open houses are a Palo Alto recreational activity, much like soccer games, or concerts i the park.  Well, if you are just curious about the market or like looking at other people's homes, then house shopping only in good weather is a great way to be entertained.

However, if you are serious about buying a home, shopping in the rain is one of the best things you can do for your due diligence.  In addition to the obvious benefit of seeing if there are any leaks through the roof, you can also find more subtle, but just as damaging leaks through windows or sliding glass doors.  You can see how the gutters are performing,  You can see if water ponds anywhere on the property, or if water is draining onto the property from a neighbor's yard.  You can also see how much light there is in the house when the sun is not shining.

I am not saying that you should never buy a home if it is not raining, but I am saying do not let rain stop you from looking.  You can learn a lot about a house and the information is valuable!

Marcy Moyer

Keller Williams Realty

www.marcymoyer.com

marcy@marcymoyer.com

650-619-9285

www.marcymoyer.com

Marcy Moyer Keller Williams Realty Palo Alto, Ca. Specialist in Trust and Probate Sales