Common use of Condemnation and Risk of Loss Clause in Contracts

Condemnation and Risk of Loss. The risk of condemnation of all or any portion of the Property or loss or damage to the Property by fire or other casualty shall be borne by Seller until recordation of the Deed. In the event of (i) the threatened or actual commencement of eminent domain proceedings or actual condemnation or taking of all or any part of the Property, or (ii) damage to the Property by fire or other casualty, act of God or any other event on or prior to the Closing Date, which would cost in excess of One Hundred Fifty Thousand Dollars ($150,000) to repair, Purchaser, at its sole option exercisable within thirty (30) days following receipt of written notice of the event giving rise to the exercise of such option, shall have the right to terminate this Agreement, in which event the Deposit shall be returned to Purchaser, and neither party shall have any further obligations or liabilities to the other, subject to the obligations of the Purchaser under Section 4.1 herein. Purchaser understands and agrees that if it does not exercise its termination option in the event of condemnation or casualty as described above, the terms and conditions of the documents governing the Existing Indebtedness will control the use of any insurance proceeds and the settlement of any insurance claims related thereto, and that Purchaser will have no rights with respect to such proceeds or claims. In the event of casualty, the repair of which would cost less than One Hundred Fifty Thousand Dollars ($150,000), Seller shall assign all insurance proceeds to Purchaser at Closing and Purchaser shall receive a credit at Closing for the amount of any deductible under Seller’s insurance. The provisions of this Article 10 shall expressly survive Closing and delivery of the Deed for the Property.

Condemnation and Risk of Loss. The risk of condemnation of all or any portion of the Property or loss or damage to the Property by fire or other casualty shall be borne by the Seller until recordation of the DeedClosing. In the event of (ia) the threatened or actual commencement of eminent domain proceedings or actual condemnation or taking of all or any part of the Property, or (iib) damage to the Property by fire or other casualty, act of God or any other event on or prior to the Closing Date, which would cost in excess of One Four Hundred Fifty Thousand Dollars ($150,000400,000.00) to repairrepair or cause a material loss in the income generated by such Property, Purchaser, at its sole option exercisable within thirty (30) days following receipt of written notice of the event giving rise to the exercise of such option, shall have the right to terminate this Agreement, in which event the Deposit shall be returned to Purchaser, and neither party shall have any further obligations or liabilities to the other, subject to the obligations of the Purchaser under Section 4.1 5 above. In the event of a casualty which does not fall within (b) above, then the Closing shall occur as provided herein. Purchaser understands and agrees that if it does not exercise its termination option in the event of condemnation or casualty as described in (a) or (b) above, or if Purchaser is required to proceed to Closing pursuant to the immediately preceding sentence, the terms and conditions of the documents governing the Existing Indebtedness will control the use of any insurance proceeds and the settlement of any insurance claims related theretothereto with respect to the Property, and that Purchaser will have no rights with respect to such proceeds or claims. In Notwithstanding the event of casualtyforegoing, the repair of which would cost less than One Hundred Fifty Thousand Dollars ($150,000)in such an event, Seller shall assign all of its rights to applicable insurance proceeds or condemnation proceeds, as applicable, to Purchaser at Closing and Purchaser the Purchase Price shall receive a credit at Closing for be reduced by the amount of any deductible under Seller’s insurancesuch insurance policy. The provisions of this Article 10 Section 11 shall expressly survive Closing and delivery of the Deed for the Property.