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CAUSES OF LOSS, INSURANCE; DAMAGE TO INCLUSIONS AND SERVICES; CONDEMNATION; <br />AND WALK-THROUGH. Except as otherwise provided in this Contract, the Property, Inclusions or both will be <br />delivered in the condition existing as of the date of this Contract, ordinary wear and tear excepted. <br />19.1. Causes of Loss, Insurance. In the event the Property or Inclusions are damaged by fire, other <br />perils or causes of loss prior to Closing in an amount of not more than ten percent of the total Purchase Price <br />(Property Damage), and if the repair of the damage will be paid by insurance (other than the deductible to be <br />paid by Seller), then Seller, upon receipt of the insurance proceeds, will use Seller's reasonable efforts to repair <br />the Property before Closing Date. Buyer has the Right to Terminate under § 25.1, on or before Closing Date if <br />the Property is not repaired before Closing Date or if the damage exceeds such sum. Should Buyer elect to <br />carry out this Contract despite such Property Damage, Buyer is entitled to a credit at Closing for all insurance <br />proceeds that were received by Seller (but not the Association, if any) resulting from damage to the Property and <br />Inclusions, plus the amount of any deductible provided for in the insurance policy. This credit may not exceed the <br />Purchase Price. In the event Seller has not received the insurance proceeds prior to Closing, the parties may <br />agree to extend the Closing Date to have the Property repaired prior to Closing or, at the option of Buyer, (1) <br />Seller must assign to Buyer the right to the proceeds at Closing, if acceptable to Seller's insurance company and <br />Buyer's lender; or (2) the parties may enter into a written agreement prepared by the parties or their attorney <br />requiring the Seller to escrow at Closing from Seller's sale proceeds the amount Seller has received and will <br />receive due to such damage, not exceeding the total Purchase Price, plus the amount of any deductible that <br />applies to the insurance claim. <br />19.2. Damage, Inclusions and Services. Should any Inclusion or service (including utilities and <br />communication services), system, component or fixture of the Property (collectively Service) (e.g., heating or <br />plumbing), fail or be damaged between the date of this Contract and Closing or possession, whichever is earlier, <br />then Seller is liable for the repair or replacement of such Inclusion or Service with a unit of similar size, age and <br />quality, or an equivalent credit, but only to the extent that the maintenance or replacement of such Inclusion or <br />Service is not the responsibility of the Association, if any, Tess any insurance proceeds received by Buyer <br />covering such repair or replacement. If the failed or damaged Inclusion or Service is not repaired or replaced on <br />or before Closing or possession, whichever is earlier, Buyer has the Right to Terminate under § 25.1, on or <br />before Closing Date, or, at the option of Buyer, Buyer is entitled to a credit at Closing for the repair or <br />replacement of such Inclusion or Service. Such credit must not exceed the Purchase Price. if Buyer receives <br />such a credit, Seller's right for any claim against the Association, if any, will survive Closing. Seller and Buyer are <br />aware of the existence of pre -owned home warranty programs that may be purchased and may cover the repair <br />or replacement of such Inclusions. <br />19.3. Condemnation. In the event Seller receives actual notice prior to Closing that a pending <br />condemnation action may result in a taking of all or part of the Property or Inclusions, Seller must promptly notify <br />Buyer, in writing, of such condemnation action. Buyer has the Right to Terminate under § 25.1, on or before <br />Closing Date, based on such condemnation action, in Buyer's sole subjective discretion. Should Buyer elect to <br />consummate this Contract despite such diminution of value to the Property and Inclusions, Buyer is entitled to a <br />credit at Closing for all condemnation proceeds awarded to Seller for the diminution in the value of the Property <br />or Inclusions but such credit will not include relocation benefits or expenses, or exceed the Purchase Price. <br />19.4. Walk -Through and Verification of Condition. Buyer, upon reasonable notice, has the right to <br />walk through the Property prior to Closing to verify that the physical condition of the Property and Inclusions <br />complies with this Contract. <br />19.5. Risk of Loss - Growing Crops. The risk of loss for damage to growing crops by fire or other <br />casualty will be borne by the party entitled to the growing crops as provided in § 2.8 and such party is entitled to <br />such insurance proceeds or benefits for the growing crops. <br />20. RECOMMENDATION OF LEGAL AND TAX COUNSEL. By signing this Contract, Buyer and Seller <br />acknowledge that the respective broker has advised that this Contract has important legal consequences and has <br />recommended the examination of title and consultation with legal and tax or other counsel before signing this <br />Contract. <br />21. TIME OF ESSENCE, DEFAULT AND REMEDIES. Time is of the essence for all dates and deadlines in <br />this Contract. This means that all dates and deadlines are strict and absolute. If any payment due, including <br />Earnest Money, is not paid, honored or tendered when due, or if any obligation is not performed timely as <br />provided in this Contract or waived, the non -defaulting party has the following remedies: <br />21.1. If Buyer is in Default: <br />® 21.1.1. Specific Performance. Seller may elect to cancel this Contract and all Earnest Money <br />14of19 6/10/20162:16PM <br />