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risk of loss

   Also found in: Legal, Wikipedia 0.01 sec.
risk of loss

Responsibility for damage to improvements,typically after signing a contract for sale and before closing takes place.States that have adopted the Uniform Vendor and Purchaser Risk Act place the risk of loss on the seller. As a result, if the property is damaged before closing, the buyer may cancel the contract,recover all sums paid,and not have any liability,provided the buyer has not taken possession.Contracts may,of course,vary the terms of the uniform law,and not all states have adopted it.



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