Who carries the risk of loss or damage to a property prior to closing, according to KREC regulations?

The seller carries the risk of loss or damage to a property prior to closing according to KREC regulations. This principle is based on the concept that until the transfer of ownership is finalized through closing, the seller maintains control and responsibility over the property. This means if any damage or loss occurs before the transaction is officially completed, it is the seller who is held accountable for rectifying the situation.

This regulation helps to protect the buyer, ensuring they receive the property in the condition agreed upon in the sales contract at the time of closing. The buyer is not liable for any issues that arise in this period, as they do not yet hold ownership rights to the property. Therefore, the seller's responsibility assures buyers that they will not incur unexpected expenses or receive a diminished asset upon acquisition.