There is a growing concern about how to handle delays and uncertainty with buying and selling homes in Illinois during the global COVID-19 (Coronavirus) pandemic.
Unfortunately, some real estate deals have already fallen apart due to the enormous economic impact of the pandemic. To help navigate these challenging times, I have prepared a contract addendum to clarify some of these concerns. I attempted to make it fair to both Buyers and Sellers.
I am sharing it with the real estate community to provide an additional tool to help put deals together in these uncertain times.
Here is the text of the addendum:
CONVID-19 REAL ILLINOIS ESTATE CONTRACT ADDENDUM
This Addendum is incorporated into the real estate contract dated ____________________ between the above captioned Parties for the property commonly known as:
Address: ________________________________ (hereafter “the Contract”).
The above-mentioned parties acknowledge that the changing circumstances surrounding the ongoing global pandemic, COVID-19 (Coronavirus), may affect the ability of the parties to close on the date specified in the Contract.
To provide for possible delays and to accommodate each other reasonably, if needed, the parties agree as follows:
- In the event that Buyer, Buyer’s lender, or Seller is unable to close on the closing date as set forth in the Contract for reasons based directly upon the COVID-19 pandemic, the closing may be extended upon written notice from the Buyer or Seller to the other party for a period of thirty (30) days.
- The Parties agree to use their best efforts to conduct the closing as soon as practicable within the aforementioned 30 day period.
- Buyer shall be responsible for any additional lender fees incurred by the Buyer including, but not limited to, rate locks, updates to credit reports, etc.
- Seller agrees that all prorations shall be made as of the day the closing is actually completed.
- In the event that the closing shall be extended for a period in excess of thirty (30) days from the original closing date, the Parties may extend closing or may terminate the Contract. If either party elects to terminate the contract, all earnest money shall be immediately refunded to Buyer.
- All parties agree to make their best efforts to coordinate a closing where appropriate social distancing can be effectuated.
If you would like a copy of this document, you can email me at email@example.com and let me know if you want in word or pdf.
As always, my office is here to help support you in your real estate needs. Our office is going to remain open during these times and we will continue to do everything we can to help our community.
P.S. If anyone you know is worried about being able to make their mortgage payments, this blog post may be helpful.
Disclaimer: This post is not intended as legal advice. It is only intended to be general information for people buying or selling their home in northeastern Illinois. For any legal advise, you should always consult a local attorney.