From the course: Real Estate Contracts

Protecting against property tax charges and risk of loss or damage

From the course: Real Estate Contracts

Protecting against property tax charges and risk of loss or damage

- [Instructor] Section 13 deals with adjustments and prorations. Any adjustment that will be made at closing is covered in this section. In many states, these adjustments will include property taxes, water and sewer charges, estimated oil adjustments, and other similar adjustments or costs that will be prorated based on the closing date. Keep in mind that these may vary in your state, so check your local requirements to find out what is customary in your area. Section 15, risk of loss or damage. This section of the contract protects your interest in the event of damage to the property while you have it under contract. It also gives or grants you the option to exercise your right to purchase the property in the event of a fire or other significant damage and receive the insurance proceeds that are paid out for the damage claim.

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