What is the primary condition under which a purchaser assumes risk in a property transaction?

The assumption of risk in a property transaction primarily occurs at the closing date as per the purchase contract. This is a crucial moment in the transaction where ownership of the property is legally transferred from the seller to the buyer.

At closing, the buyer typically takes on all the risks associated with the property, including any potential issues that may arise after the transfer. Prior to closing, while the buyer may be evaluating the property and negotiating terms, they do not have legal ownership, and thus, the risks are not fully assumed until the transaction is finalized. This legal transfer at closing means the buyer becomes responsible for the property, including any physical condition of the property, liabilities, or unforeseen circumstances.

The other options allude to moments in the transaction process that do not reflect the formal assumption of risk. Negotiations are preliminary discussions and do not imply ownership or risk acceptance. Inspecting the property before purchase certainly informs the buyer about its condition but does not equate to assuming risk until the closing occurs. Therefore, the closing date represents the critical point where the buyer officially takes on the risks associated with the property.