We are going to make a bid on a new house. Finances are tight and we barely qualify for a mortgage. Luckily we just made it. We will not have much savings once we are through with the purchase so we will not be able to do much work on the house any time soon. 

However, we are worried about something my niece told us. She is a first year law student and she said that once we enter into a real estate sales contract, if anything happens to the property - like the house burning down or it getting blown apart by a hurricane - we would be responsible for the damage. Is that true? If so, we cannot afford to take that chance. As we said, finances are tight right now. 

Is there anything you can suggest that would help with this? Can we stipulate or something in the sales contract that we will not be responsible for any damage? Can we do that?

 

2. Please draft some risk of loss language that will meet the needs of the client's request.
4. Briefly explain why your drafted language would shift the burden under the doctrine of equitable conversion, ensuring that you have provided a complete IRAC of the issue.

Answer rating: 100% (QA)

As a legal assistant I understand your concern and would be happy to help you draft language that shifts the burden of risk to the seller in the event ... View the full answer