Who is responsible for damage or destruction that occurs to a property after the purchase contract is signed but before escrow closes?

The seller is responsible for any damage or destruction that occurs to the property after the purchase contract is signed and before escrow closes due to the principle of "risk of loss." Generally, in real estate transactions, the seller retains the risk of loss until the property is officially transferred to the buyer, which typically occurs at the close of escrow. This means that if the property suffers damage during this period—for example, from fire or natural disaster—the seller would need to address that damage or potentially provide remedies to the buyer, as the seller is still the legal owner of the property until the transaction is finalized.

This principle reinforces the importance of due diligence and clear communication in real estate transactions. Buyers should consider obtaining insurance during this period or ensure that their contract includes clauses that protect them should the property be damaged before closing.