Who bears the risk of loss or damage to property before legal title is transferred?

The seller typically bears the risk of loss or damage to the property before legal title is transferred. This principle arises from the idea that the seller maintains ownership and control over the property until the closing process is complete, which includes the transfer of legal title to the buyer. Until that point, any incidents such as damage due to fire, floods, or other unforeseen events would fall upon the seller.

This responsibility is part of the seller's obligations, ensuring that the property is in the same condition as it was when the contract was executed. Buyers expect to receive their new property free of defects, which means sellers must manage any risks associated with the property until the transaction is finalized. Once the title is legally transferred, the risk shifts to the buyer, who assumes the responsibility for any subsequent damage.