Common use of Damage or Destruction Prior to Closing Clause in Contracts

Damage or Destruction Prior to Closing. The Seller shall bear the risk of all loss or damage to the Property from all causes through the time of recordation of the Deed (defined in Section 10.1.1). In the event any of the Improvements or the Land should be damaged or destroyed as a result of fire or other casualty or any other cause whatsoever which occurs prior to the Closing Date, the Seller shall promptly give the Purchaser written notice of such destruction or damage. The Purchaser shall have the option of either (a) affirming this Agreement, in which event Seller will pay to the Purchaser any insurance proceeds payable to the Seller therefor or assign to Purchaser all of Seller’s rights under any policy or policies of insurance on the Property, as applicable, and proceed to Closing hereunder; or (b) terminate this Agreement and receive the Deposit, in which event both Seller and Purchaser shall be released from all further obligations and liabilities under this Agreement, except as otherwise expressly set forth in this Agreement.