Where do the minority of states place the risk of loss?

The correct focus of risk of loss typically falls on the seller in the minority of states because these jurisdictions adhere to the "title theory" of property transfer. In this model, the seller retains the risk until the buyer legally takes possession of the property, or until the title officially transfers. This is based on the concept that the seller should be responsible for the property's condition until it is fully transferred to the buyer.

Moreover, this places an implied obligation on the seller to maintain the property in a certain condition until the sale is completed. Thus, if any damage occurs before the transfer of title, the seller would bear the loss. This principle aims to protect the buyer's interests, particularly in ensuring that the property is in the agreed-upon state when it changes ownership.

In contrast, other interpretations of risk transfer found in the majority of states might assign the risk to the buyer after the signing of the contract or upon closing. This indicates that understanding the specific laws of the state in question is vital for both buyers and sellers in a real estate transaction.