Under Contract on a Home and a Storm is approaching…

hurricane

There are 2 sections of the contract that refer to “Force Majeure” or unforeseeable circumstances that prevent someone from fulfilling a contract.

In an event constituting “Force Majeure” causes services essential for Closing to be unavailable, including the unavailability of utilities or issuance of hazard, wind, flood or homeowners’ insurance, Closing Date shall be extended as provided in Standard G.

Standard G under Paragraph 18 of the Contract is the Force Majeure provision. It states:

Buyer or Seller shall not be required to perform any obligation under this Contract or be liable to each other for damages so long as performance or non-performance of the obligation, or the availability of services, insurance or required approvals essential to Closing, is disrupted, delayed, caused or prevented by Force Majeure. “Force Majeure” means: hurricanes, floods, extreme weather, earthquakes, fire, or other acts of God….which, by exercise of reasonable diligent effort, the non-performing party is unable in whole or in part to prevent or overcome.

According to Paragraph 18 G, all time periods, including the Closing Date, will be extended a reasonable time up to 7 days after the Force Majeure no longer prevents performance under the Contract, provided, however, if such Force Majeure continues to prevent performance under the Contract more than 30 days beyond the Closing Date, then either party may terminate the Contract by delivering written notice to the other and the Deposit shall be refunded to Buyer, thereby releasing Buyer and Seller from all further obligations under the Contract.

Additionally, keep in mind the Seller must still comply with the Maintenance Requirement under the terms of the Contract (See Paragraph 11 of both the Far Bar As-Is and Repair Contracts). Further, the Risk of Loss provision (See Paragraph 18 M) is still in play. If you are currently under contract on a home and have any questions, Please contact your Real Estate Specialist.

Carlleen Wilson

Carlleen Wilson | Realtor® | eXp Realty LLC
Luxury Home Marketing Specialist, CLHMS Member
Multi-Million Dollar Producer | The Coastal Club Real Estate Group
MRP | Military Relocation Professional
VAREP | Veterans Association of Real Estate Professionals | Board Member
“Making the American dream a reality for those who have served us.” 

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