Coronavirus contingency clause added to Bay Area condo deal

The seller is stuck in Wuhan, China, where the virus broke out

TRD NATIONAL /
Feb.February 27, 2020 02:06 PM
Red Oak Realty has coined a new contingency clause related to coronavirus after the seller got stuck in Wuhan, China. (Credit: iStock)

Red Oak Realty has coined a new contingency clause related to coronavirus after the seller got stuck in Wuhan, China. (Credit: iStock)

At least one condominium contract in the Bay Area has a contingency clause related to coronavirus.

The seller travelled to Wuhan, China for Chinese New Year celebrations after their condo went into contract on Jan. 25, and has yet to return to the U.S. due to the fast-growing spread of the virus and a local lockdown, Inman reported.

As a result, local brokerage Red Oak Realty, which is representing the buyer, advocated for the addition of a clause that requires a seller to pay the costs for a home inspection and appraisal in the event that that the seller isn’t able to travel home in time for the closing and Red Oak’s client decides to move on.

The seller also agreed to pay for the extension of the buyer’s 30-day mortgage rate lock.

Gabriela Neagu, the Red Oak agent working with the buyer on the deal, said they knew the seller was travelling to China, but had only realized later that he’d travelled to Wuhan, the city where the epidemic began.

Neagu told Inman that the seller had attempted to designate someone in the U.S. as power of attorney to conduct the sale, but papers weren’t able to be notarized so they opted for a coronavirus contingency clause.

Vanessa Bergmark, who runs Red Oak, told the publication that contingency clauses are rare in the Bay Area.

“There’s been these little things that have come up over time, but I haven’t seen one around a virus,” she added.

The S&P 500 and the Dow Industrial Average have plunged following reports that coronavirus was breaking out in Italy and South Korea. [Inman] — Erin Hudson


Related Articles

arrow_forward_ios
(iStock)

Movie theaters might not come back after all

Movie theaters might not come back after all
(iStock)

Landlords lost about $9B in rental payments last quarter: report

Landlords lost about $9B in rental payments last quarter: report
Jamie Dimon and 383 Madison Avenue (Getty, Google Maps)

JPMorgan suffers setback in return to office

JPMorgan suffers setback in return to office
Lennar's Stuart Miller, Rick Beckwitt and Jon Jaffe (Lennar; iStock)

Lennar reports untempered demand for new homes in Q3

Lennar reports untempered demand for new homes in Q3
A lawsuit seeks to dismantle Gov, Andrew Cuomo’s midnight food curfew by arguing coronavirus is not a vampire (Getty; iStock)

Nail in the coffin: Eatery says Cuomo’s biz-killing curfew treats virus like vampire

Nail in the coffin: Eatery says Cuomo’s biz-killing curfew treats virus like vampire
U.S. foreclosure filings in August jumped 11% as some states ended relief measures, though continued government intervention has prevented sharper increase (iStock)

US foreclosure filings jump as some states end relief measures

US foreclosure filings jump as some states end relief measures
Singapore (iStock)

Singapore’s housing market storms back

Singapore’s housing market storms back
Century  21 will wind down operations at its 13 stores (Getty)

Century 21 Stores files for bankruptcy, blames insurers

Century 21 Stores files for bankruptcy, blames insurers
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...