Coronavirus: Realtor® EDU Center

A: The deadline for performance will be extended a reasonable time up to seven (7) days, after the Force Majeure no longer prevents performance, but in no event more than thirty (30) days after the Closing Date—at which point either party can cancel, and the buyer would be entitled to a return of the deposit.

A. Force Majeure is governed by Standard G of the Contract. Force Majeure means: hurricanes, floods, extreme weather, or other acts of God…which by exercise of reasonable, diligent effort, the nonperforming party is unable in whole or in part to prevent or overcome. If it’s determined that Force Majeure applies, the Parties shall not be required to perform any obligation under the Contract so long as performance or non-performance or the availability of services or required approvals essential to Closing cannot reasonably or diligently be procured. Under this standard, the Closing Date will be extended a reasonable time up to seven (7) days, after the Force Majeure no longer prevents performance. So, for example, a lack of power to the Property which would enable an inspection, would likely prevent performance under the Contract and would likely constitute a Force Majeure. ntent

A. If the services necessary to perform the inspection are able to be procured by the Buyer through reasonable, diligent efforts, (i.e. inspector), there would not be any delay or extension of the Inspection Period; if a Buyer states that his/her inspector is suspending business, this is not force majeure, as the Buyer could find another inspector.

A. If a Lender flat out refuses to close any loans for which approvals have been previously granted, and shuts down its lending operations, force majeure would not apply. The flat-out refusal of a lender to close a loan transaction would not constitute a “delay or disruption” of services essential for closing. However, if a Lender, rather than canceling files, simply says they are suspending lending operations for a set period of time, then force majeure may be triggered to delay closing. Given the ambiguity in the wording of Standard G on the FR/BAR Contract, the failure to obtain financing might be subject to multiple, varying interpretations insofar as Standard G is concerned. This requires a case-by-case analysis of the facts applicable to each case.