This notice is to inform you that the property located at _______________________________ is located in an area that recently experienced a natural disaster. Therefore, the property may have experienced damage due to the natural disaster. For this reason, we would like to advise you of the following suggested actions.

The below list is not intended to be an exhaustive checklist of due diligence; but it is intended to notify you of the disaster, your contractual rights, and some basic steps to take to perform due diligence on the property. 
  1. If you suspect your property has been damaged, contact your insurance carrier as soon as possible to determine what amount of the loss will be covered.
  2. Review the provisions in your purchase contract regarding casualty loss with a lawyer.  In many instances of casualty loss out of Seller's control, the Buyer will be in the driver's seat to determine next steps.  For instance, Section 14 of the standard TREC One to Four Residential Contract ("Section 14"), gives the Buyer three basic options: (i) terminate the contract with a full refund of earnest money; (ii) extend the closing date for up to 15 days; or (iii) accept the property in its damaged condition and receive the insurance proceeds from the Seller's policy plus a credit on the purchase price for any excess, if permitted by the Seller's policy.  If your contract has a similar provision, you might consider timely conveying your insurance company's process and determination to the Buyer.
  3. Consider allowing the buyer to delay closing until the property can be re-inspected, even if this delay will extend closing beyond the 15 days permitted in contractual provisions like Section 14. 
Please contact me with any questions or concerns.


eXp Realty, LLC.