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In the event of loss of damage of the property due to fire, windstorm, or other disaster, the buyer has the option to terminate the agreement and receive a return of the earnest money or to collect the insurance settlement on the property.
The contract of purchase states that the buyer agrees to accept the property at settlement in its condition at the time of contract acceptance, ordinary wear and tear excepted, but with the repairs and improvements that the parties had agreed upon. The seller signs that all appliances, heating and cooling systems, plumbing and electrical will all be in working order at the time of settlement.
The seller agrees to convey the property in "broom clean" condition and to exercise reasonable and ordinary care in the maintenance and upkeep of the property between the ratified contract date and settlement.
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