Definitions for "Risk of Loss"
Keywords:  vendee, quo, silent, himself, damage
The allocation of loss between seller and purchaser due to damage or destruction of property during the interim period between the time of signing of a valid real estate sales contract and the closing date. Risk of loss can be specified by contractual agreement. Where the contract is silent, the Uniform Vendor and Purchaser Risk Act or the common law must be referred to.
Risk of loss is what an insurance company agrees to when it covers an individual or their property against damage or loss.
Responsibility for damages caused to improvements. The risk of loss passes to the vendee when either title or possession passes, and he should protect himself by see parties to their original positions; a return to the status quo.