The Coronavirus and Real Estate: COVID-19 Addendum, Disclosure & Support
At this point no matter who you are, we have all heard of the COVID19 pandemic sweeping the world. By now, most Florida REALTORS® have also heard of the Florida contract documents that have been created to go along with this pandemic – the COVID19 Contract Extension Addendum and the COVID19 In-Person Access Acknowledgement Disclosure. Here we will dive into them a little deeper to talk about what they mean for you and your customers!
Coronavirus (COVID-19) Extension Addendum to Contract (COVID-1)
This addendum was created to be used in conjunction with existing contracts to assist with any delays in contractual deadlines that would be as a direct result of COVID-19. This pandemic may impact transactions due to reasons such as travel restrictions, isolations (government regulated or self imposed), business closures of offices, funding institutions, appraisers, inspectors, county document recorders, and even could be due to homeowner association inactions, etc. To deal with this, this addendum includes extension options should the need arise due to COVID-19 for the following deadlines: closing date, financing period, inspection period, title cure period, feasibility study period, due diligence period, homeowner/condo association approval periods. The form also includes a provision for a loan-approved buyer should things change on the lenders’ side as a result of the COVID-19 pandemic, like the lender refusing to fund due to COVID restrictions for example.
This addendum is multi-functional, it can be used with the FAR/BAR As-Is Residential Contract For Sale and Purchase, the CRS-16 Residential Contract for Sale and Purchase, Vacant Land Contracts and Commercial Contracts. Just keep in mind when extending that the FAR/BAR As Is Contract references time computations in calendar days, And the CRSP-16 Contract for Sale and Purchase uses business days. Both contracts state that if a deadline ends on the weekend (Saturday Sunday or national legal holidays), it extends to the following business day by 5pm in the time zone of said property. Both buyer and seller must sign and agree to extend for the addendum to be in effect. Read here for further helpful details and information supplied by Florida Realtors. If you have any questions regarding the addendum or your particular transactional situation, please call Florida Realtors Legal Hotline at 407-438-1409.
COVID-19/Coronavirus In-Person Access Acknowledgement (FR IPA-1)
This disclosure was created to protect agents from liability. It is to be signed by listing brokerage or cooperating brokerage and the corresponding seller/landlord or potential buyer/tenant. It asks that the prospect acknowledge their awareness of the national pandemic COVID-19 and the danger of the health crisis. It asks that in pursuit of selling, leasing or buying a property that the prospect confirm that they desire the agent to bring prospective buyers/tenants to the property, confirm that they acknowledge when properties are accessed in person it creates an unavoidable health risk, and it asks that the prospect do their best to minimize risk to themselves and others. It also asks that they notify the agent if they become aware of a health danger previously unknown, and it asks that the prospect comply with the most current version of CDC (Center for Disease Control) Guidelines. In short it is asking that they assume the risk, acknowledge the risks at hand and will do their best to minimize the risk.
Either of these documents can be found by licensed Florida REALTORS® in whatever Florida contract forms paperwork system they may use – be it Form Simplicity, Transaction Desk, Dotloop, etc. You can log in here to access the documents in Form Simplicity. If you have further questions and want to talk to us about the addendums, the pandemic or joining our brokerage in general, feel free to give us a call today or visit our main page for more information on us.
