Death Before Property Completion
Last updated on January 23rd, 2023
What happens when a party to a contract for sale of property dies before completion?
If a party to a contract for the sale of property dies before completion, it can create complications and uncertainty. In Death Before Property Completion situation, it is important to understand the legal implications and to take appropriate action in order to protect your interests.
When a party to a contract for the sale of property dies, the contract is not automatically terminated. Instead, the contract is treated as if the deceased party had never been a party to the contract. This means that the contract remains in place and the remaining parties are still bound by its terms.
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If the deceased party was the seller, the contract will typically be transferred to the deceased party's estate. The estate will then be responsible for completing the sale, and the buyer will be required to continue making payments and fulfilling their obligations under the contract.
If the deceased party was the buyer, the contract may be terminated by the seller. In this case, the seller can retain any deposit paid by the buyer and may be entitled to seek damages for any losses they have incurred as a result of the buyer's death.
If the contract is terminated by the seller, the buyer's estate may be entitled to seek a refund of any deposit paid. However, the buyer's estate may also be liable for any damages incurred by the seller as a result of the buyer's death.
In conclusion, if a party to a contract for the sale of property dies before completion, the contract is not automatically terminated. Instead, the contract is treated as if the deceased party had never been a party to the contract. It is important to understand the legal implications of the deceased party's death and to take appropriate action in order to protect yourself.
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