What is the consequence of damage or destruction of a property under contract prior to closing?

When a property under contract is damaged or destroyed before the closing, the consequence can indeed lead to the termination of the contract. This stems from the principle of "impossibility of performance," where the fundamental purpose of the contract—to transfer a specific property—has been compromised due to the loss or damage.

In Texas, standard residential contracts often include provisions addressing how to handle such situations. If significant damage occurs, the buyer typically has the right to terminate the contract without penalty. This ensures that the buyer is not obligated to go through with the purchase of a property that no longer meets their expectations or is compromised in its condition.

Other options relate to legal actions that may not directly reflect the primary outcome of property damage under a contract. For instance, lawsuits against the seller or broker may arise in different contexts but are not the immediate or typical results of property damage prior to closing. Similarly, the idea that it would never cause a delay in closing does not align with the general legal understanding of how property contracts are affected by unforeseen damage. Thus, the correct understanding is that damage to the property can lead to an option for termination by the buyer under the contract terms.