Calgary’s sudden hailstorms can create unexpected problems for both buyers and sellers in real estate. When hail damage occurs between the sale of a property and its official transfer, it can complicate the closing process. As a Realtor® with Grand Realty Calgary, I’m here to provide guidance on handling these challenges.
Understanding the Buyer’s Position
When you buy a property, you expect it to be in the same condition at closing as it was when you made the offer. However, if a hailstorm damages the property—especially the roof or siding—before the closing date, it can raise concerns.
Buyers often expect that any damage will be repaired before they take possession. But, due to high volumes of insurance claims and repair requests after a storm, this isn’t always possible. Insurance companies may be overwhelmed, leading to delays in processing claims and repairs.
The Seller’s Obligations
Sellers are responsible for maintaining the property’s condition as it was when the contract was signed. This means addressing any damage that occurs before closing. However, insurance claims can be tricky, particularly when it comes to deductibles and depreciation.
Insurance usually covers only part of the repair costs because of depreciation. For example, if a roof is nearing the end of its 25-year lifespan, the insurance might only cover a portion of the replacement cost, leaving the seller to cover the rest. This raises the question: should the seller absorb the depreciation costs, or should the buyer be ready for extra expenses?
Balancing the Interests
Effective communication and negotiation are key to resolving these issues. Both parties should discuss the situation early and agree on how to handle the damage. Real estate and legal professionals can help facilitate these discussions and ensure that both sides understand their responsibilities and options.
Sellers should file insurance claims and start repairs as soon as possible. However, be prepared for potential delays, as extensive damage can lead to longer repair times. Buyers should be aware of these potential delays and work with their agents to reach a fair solution.
Seeking Professional Advice
Handling hail damage claims before possession involves navigating complex issues. Each situation is unique, and finding the right solution requires understanding legal obligations and insurance policies. It’s essential to consult with knowledgeable real estate and legal professionals.
If you’re facing hail damage issues or have other real estate questions, feel free to reach out. At Grand Realty Calgary, we’re here to support you through every step of your real estate journey. Contact me, Malvinder Tiwana, for expert advice and assistance.
