The coronavirus clause is now a thing in resi deals

“Force majeure” clauses allow for extension or termination of contracts

National /
Mar.March 24, 2020 10:15 AM
Real estate brokers across the country have been adding standardized coronavirus-related legal language and addendums to help buyers manage risk.

Real estate brokers across the country have been adding standardized coronavirus-related legal language and addendums to help buyers manage risk.

Less than a month ago, a “coronavirus clause” in a condo deal was a rare curiosity. But now such clauses have gone mainstream.

Real estate brokers across the country have been getting standardized coronavirus-related legal language and addendums from their attorneys, title companies, brokerages and trade organizations to help buyers manage risk in these uncertain times, Inman reported.

“Any new contracts that we’re writing, we are putting an addendum in,” Linda Fercodini of Fercodini Properties in Wolcott, Connecticut told the publication. “We’ve had a few of our buyers want to extend because of their job — the companies they work for have asked them not to come in.”

Many of these clauses include “force majeure” language allowing contracts to be terminated or extended for a period of time under certain unforeseeable circumstances.

The clause used by Fercodini states that a contract may be delayed in the event of “an act of God, declared state of emergency or public health emergency, pandemic (specifically including COVID-19), government mandated quarantine” and some other scenarios.” [Inman] — Kevin Sun


Related Articles

arrow_forward_ios
Eviction Notices (iStock)
Westchester County leads state in evictions outside NYC
Westchester County leads state in evictions outside NYC
US household real estate values jump by record $1.2T
US household real estate values jump by record $1.2T
US household real estate values jump by record $1.2T
New York state is also contributing $125 million toward rent relief from the budget. (iStock)
On Long Island, family of 4 earning $156K qualifies for rental assistance
On Long Island, family of 4 earning $156K qualifies for rental assistance
Home sales dipped in August after two months of increases
Home sales dipped in August after two months of increases
Home sales dipped in August after two months of increases
Builders broke ground on more residential properties in August than had been predicted, but the number of single-family housing starts fell below expectations. (iStock)
August housing starts rose but single-family properties fell short
August housing starts rose but single-family properties fell short
Covid surge dims enthusiasm for ICSC Vegas conference
Covid surge dims enthusiasm for ICSC Vegas conference
Covid surge dims enthusiasm for ICSC Vegas conference
614 Hudson Street in Hoboken, NJ (Redfin)
19th Century townhouse in Hoboken listed for $7M
19th Century townhouse in Hoboken listed for $7M
First-time buyers in New York City have prime options in 4 out of the city’s 5 boroughs, according to a report from StreetEasy (iStock)
Sheepshead Bay tops ranking of best NYC neighborhoods for first-time buyers
Sheepshead Bay tops ranking of best NYC neighborhoods for first-time buyers
arrow_forward_ios

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

Loading...