Deal falls through due to events just prior to closing- what next

[Santhi Mani]

Let us say inspection went through well but two days before the closing there is a roof damage due to heavy rains and corresponding leak inside the living room.

Question:

01. If seller unable to fix the new repairs prior to the agreed closing date, could buyer walkout of the deal?

02. If seller accepts to fix the deal but buyer has additional cost due to extending the lender rate lock etc, could buyer ask the seller to pay it additionally?

In case of #01 above, are there any commission due to the listing agent or buyer agent even when the deal falls through?  If so, who pays it?

In case of #01, buyer could legally getback the earnest money deposit?

Any  other costs the buyer or seller need to be aware of?

[Brian Pulaski]

Your contract should explain all of this. Typical would be the seller owes the house in the exact shape it was when the offer was made. If an event happens and the house is damaged, the seller would be responsible for repairing or the buyer can back out. This is a very basic explanation and again your contract should spell this out.

The buyer would get their EMD back, and no realtors would get commission as the deal fell apart not different than any other reason a deal can fall apart.

With all that said, CA may have different rules/laws.