Common use of Condemnation, Damage or Destruction Clause in Contracts

Condemnation, Damage or Destruction. Until the Closing, the risk of loss or damage to the Property by fire or other casualty or its taking or damage by condemnation shall be retained by Seller. If any Material Loss, as hereafter defined, occurs prior to the Closing, then Purchaser shall have the option of (i) terminating this Agreement, in which event this Agreement shall be terminated with neither party having any rights against the other, or (ii) accepting the Property and being assigned the right to collect any insurance or condemnation proceeds. If, prior to the Closing, all or any material part of the Property shall be condemned by governmental or other lawful authority (as determined by Purchaser in its reasonable discretion), Purchaser shall have the option of (a) completing the purchase and being assigned the right to collect any insurance or condemnation proceeds, or (b) terminating this Agreement, in which event this Agreement shall be terminated with neither party having any rights against the other. In the event of any immaterial casualty or condemnation (not qualifying as a Material Loss) regarding any portion of the Property, Purchaser shall be obligated to purchase the Property for the Purchase Price and be assigned the right to collect any insurance or condemnation proceeds. The term “Material Loss” shall mean any loss or damage to the Property in an amount which equals or exceeds One Hundred Thousand and 00/100 Dollars ($100,000.00) (as determined by Purchaser in its reasonable discretion).