The National Association of Realtors (NAR) is providing helpful information and guidance on their website www.nar.realtor. They point out that Purchase Agreements may already have existing safeguards that cover some types of delays, but that an additional addendum for coronavirus-related events is recommended at this time.
A more specific addendum addressing potential coronavirus-related delays is a good idea. Many brokerages and REALTOR® associations have recently released such an addendum for their agents and members to use in extending the close of escrow date if necessary. These addenda address concerns such as: a lack of inspectors or appraisers; a party’s inability to travel to sign documents; a party being subject to a mandatory quarantine; and closings of or delays in related government and business services such as closing of lenders and title/escrow companies.
An addendum could also address the buyer’s loss of income due to COVID-19 related circumstances, and what happens to the earnest money deposit should the parties ultimately agree to cancel the agreement.
Copyright © 2020 Sandy Gadow. This column may not be resold, reprinted, resyndicated or redistributed without the written permission from Escrow Publishing Company.