2020 was a year that forced people to think outside the box. Whether a new approach to how we work, teach our children or negotiate deals, quick thinking allowed many of us to make the most of uncertain times. Innovative strategies were present in all aspects of our lives, and real estate transactions were no exception. Those looking to buy or sell real estate may have come across a coronavirus provision. A buyer or seller may have included this provision within a real estate contract in an effort to sweeten the deal. Those who are looking to navigate the real estate market during these times are wise to know the following about these provisions.
#1: What are coronavirus provisions?
The term coronavirus provision is a catch all that includes any provision that is added to a real estate contract to help address unique circumstances that come with the pandemic. This could include increased flexibility with a closing date due to stay-at-home orders or specific disinfecting requests to help reduce the risk of transmission of the virus before the new owner moves in. These provisions can include an array of requests that result from COVID-19.
#2: Are these provisions legal?
Like many things in the legal world, the answer is it depends. Unfortunately, there is no bright line rule about these provisions. However, any provision included within a contract is likely subject to the terms of that contract. As a result, it is wise to carefully review the contract and make sure you understand the benefit and risks of these and other provisions.
#3: What if I want to change the provision?
Whether looking to add this type of provision comment edit the provision or remove it altogether options are available. It is important to note that real estate transactions are negotiations. Buyers and sellers alike can negotiate the terms. It is wise to have a legal professional experienced in these negotiations to serve on your behalf. This will better ensure you understand the contract and negotiate terms that are in your best interests.
