"if, after Effective Date, but before closing, Property is damaged by fire or other casualty ("Casualty Loss") and cost of restoration (which shall include cost of pruning or removing damaged trees) does not exceed 1.5% of Purchase Price, cost of restoration shall be an obligation of Seller and Closing shall proceed pursuant to terms of this Contract.  . . . If cost of restoration exceeds 1.5% of Purchase Price, Buyer shall elect to either take Property "as is" together with the 1.5%, or receive a refund of the Deposit thereby releasing Buyer and Seller from all further obligations under this Contract.  Seller's sole obligation with respect to tree damage by casualty or other natural occurrence shall be cost of pruning or removal."

 

A common example of Casualty Loss (i.e., hurricane wind or water loss) to a residential property is water damage due to roof leak or other water intrusion.  Upon assessment of the damages, if the cost of restoration does not exceed 1.5% of the Purchase Price, then the cost of restoration shall be bourne by the Seller.

 

However, if the Property is damaged by casualty and the cost of restoration exceeds 1.5% of the purchase price, Buyer shall elect to either take the Property "as is" and be entitled to a credit from the Seller equal to 1.5% of the purchase price, or, receive a refund of the Deposit thereby releasing Buyer and Seller from all further obligations under the Contract.

 

So, as a Buyer obligated under a pending Contract, if the roof of the Property was blown off by a hurricane prior to closing, the Buyer could still close (and be entitled to a 1.5% closing credit from Seller), or, Buyer could cancel the deal and get the earnest money deposit back and be fully released from the transaction. 

These types of disputes can be lengthy and costly if not resolved early.  For any type of real estate contract dispute, it is imperative that you consult a real estate attorney for advice to determine your rights and obligations under the contract.