It’s true, the COVID-19 pandemic has caused our nation to face uncertainties that continue to challenge our families, schools, businesses, and the economy in ways we could not have imagined. Now add to that pot, the already stressful exercise of closing on a new home and you just might be tempted to run and hide— or, at least have several drinks! ?. Before you start throwing ’em back, let me lead with this…

We’re going to be okay. Better yet, YOU’RE going to be okay!

Already, our global citizenship has come together with extraordinary compassion to share creative ways to keep the kiddos entertained and care for our seniors. I want to do my part by giving you one less thing to stress about as it relates to your upcoming closing.

If you are a homebuyer with a closing in the peach state, the Georgia Association of REALTORS® released a new special stipulation in response to the growing concern about the impact of COVID-19 on real estate closings.

The intent of this special stipulation is to keep as many transactions intact, while at the same time not obligating everyone to remain under contract for an unknown length of time. It allows a licensed real estate agent to modify the terms of a new or existing contract by including certain considerations for a COVID-19 related event (“CRE”).

Here’s what you need to know right now.

The new stipulation has 3 main provisions.  Let’s quickly run through them below:

  1. The new stipulation allows the buyer and seller to negotiate the period of time in which the closing can be delayed due to a CRE.
  2.  If any closing participant (closing attorney, mortgage lender, the buyer and/or the seller) is unable to perform their obligation due to a CRE, it specifies the number of days you have to close the transaction after the CRE has been resolved
  3. It addresses what should happen if no one’s obligations are hindered by a CRE, but the buyer and/or seller has apprehensions about attending the closing in person.

Got Questions? I’m glad you asked!

What if I don’t live in Georgia? Are there similar provisions for my state? You know, I’m not sure. But, it could very well be different where you live. You can always check the REALTOR® Association for your state; they are pretty easy to find. Just type the name of your state, followed by “association of realtors” in the googles and she’ll get you where you need to be. Or, just ask your agent! (Yes, I’m convinced that Google is a woman— judge away!)

What qualifies as a COVID-19 related event? While there is no specific list of events that would fall under CRE, such a list is not needed. Any event related to COVID-19 that prevents one of the above-mentioned parties to the transaction from fulfilling their obligations would be a CRE.

How much time do I have to close once the COVID-19 event is resolved? The new special stipulation provides that the closing to take place seven (7) days after the CRE has been resolved. However, it also carries the requirement that a buyer or seller that is affected by a CRE (and is thus unable to perform their contractual obligations) must promptly notify the other party of both the CRE and when the CRE has been resolved so that the everyone can move forward.

Can my agent add the special stipulation if I don’t have a CRE, but I have concerns about attending the closing in person? In the instances where the buyer and/or seller is self-quarantining or concerned about attending the closing in-person, this does not relieve said party of their obligation to close. If a party does not want to attend the closing in-person, that party can utilize a power of attorney to attend the closing on their behalf.

A party to the transaction that has been infected with COVID-19 would be permitted to delay the closing until the affected party is no longer at risk of spreading COVID-19 to others. However, the parties are expected to use their best efforts to close the transaction through a power of attorney if they are unable to be physically present at the closing. 

How much time do I have to resolve my COVID-19 related event?
This part is negotiable between the parties. The intent behind the negotiated length of time was to allow the parties to fill in a long enough period of time in which they might be able to close if circumstances settle down (such as 60, 90 or even 120 days) without the parties being bound by the contract for an unknown length of time. After the negotiated time period has passed, either party may opt to terminate the contract without penalty.

Am I required to add this special stipulation to my contract while we’re practicing social distancing? Please remember that this special stipulation is completely optional. While this language has been approved by the Georgia Association of REALTORS®, your agent is welcome to modify the contact as appropriate to your circumstances using guidance from his/her broker.

I’m ready to close, but the other side has presented COVID-19 related special stipulations. Do I have to delay the closing? Please remember that any change to a contract must be signed by all parties. So, you’re not required to delay the closing. “Howevah”— given the level of uncertainty around the current pandemic, I would encourage you to make your decision with grace and compassion for anyone who might be impacted by the COVID-19 outbreak.

Alright kids, I hope has made you feel a little bit better about your options in these strange times.