Risk of Loss Clauses: Contract for Real Property are clauses that define who is responsible for the risk of loss of a piece of real property during a sales transaction. Risk of loss clauses determine the time when the risk of loss passes from the seller to the buyer and the responsibilities of each party in the event of certain losses, such as damage or destruction, to the real property. There are two main types of Risk of Loss Clauses: Contract for Real Property: the "Title Passes" clause and the "Delivery Passes" clause. The Title Passes' clause states that the risk of loss passes from the seller to the buyer when title is transferred to the buyer, typically at the closing. The Delivery Passes clause states that the risk of loss passes from the seller to the buyer when the real property is delivered to the buyer, which is typically prior to the closing.