§ 39-39. Risk of loss. - North Carolina Statutes

§39‑39.  Risk of loss.

Any contract hereafter made inthis State for the purchase and sale of realty shall be interpreted asincluding an agreement that the parties shall have the following rights andduties, unless the contract expressly provides otherwise:

(1)        If, when neither thelegal title nor the possession of the subject matter of the contract has beentransferred, all or a material part thereof is destroyed without fault of thepurchaser, the vendor cannot enforce the contract, and the purchaser isentitled to recover any portion of the price that he has paid;

(2)        If, when either thelegal title or the possession of the subject matter of the contract has beentransferred, all or any part thereof is destroyed without fault of the vendor,the purchaser is not thereby relieved from a duty to pay the price, nor is heentitled to recover any portion thereof that he has paid. (1959,c. 514.)