Uniform Vendor and Purchaser Risk Act

The Uniform Vendor and Purchaser Risk Act governs which party to a contract for the sale of real property bears the loss when the property is damaged or destroyed after the contract is signed but before the sale closes. It replaces the older equitable-conversion rule by tying the risk to possession and legal title: while the seller retains both, the seller bears the loss and the buyer may recover any money already paid, but once the buyer takes possession or title, the loss falls on the buyer, who remains obligated to pay the purchase price. Because it is a uniform act, it also directs that its provisions be construed consistently with those of other states that have adopted it.

Editorial summary generated from the text of this act. It is not part of the statute — read the sections below for the operative language.