What to do if damage occurs to a property during the escrow period?

We purchased a home through a short sale and we paid cash. We had our inspection done approx. 10 days prior to the close of escrow. The inspection report is clean with a few very minor issues. When escrow closed we went to the house several hours later for the first time since the inspection and to our surprise, the house was flooded. Since it was a cash deal, a home insurance policy was not required to close, therefore we were waiting for the deal to close before we established a policy. It is very clear that the house had flooded during the escrow period since it was already beginning to dry up and the flooring was warped in a lot of areas by the time we got there. What can we do now?

Asked on January 15, 2013 under Real Estate Law, Nevada


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Based upon what you have written abou I would immediately instruct escrow via a written document to not close escrow due to physical damage of the unit. Keep a copy of the transmission for future use and need. Thereafter, consult with a real estate attorney to discuss your options as to demanding repairs to your satisfaction before closing or cancelling escrow altogether.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.