The Georgia REALTORS® (GAR) Forms Committee approved a special stipulation that was drafted by Seth Weissman, GAR’s General Counsel, to address what happens when closings cannot take place as contracted due to COVID-19’s impact on the parties and businesses involved in the transaction.
The Forms Committee approved the following special stipulation that real estate licensees can provide to their clients and customers who are concerned about the possibility of not being able to close on their transaction due to COVID-19. Please seek guidance from your broker in determining if / when you should use this COVID-19 Special Stipulation in your real estate transactions.
COVID-19 SPECIAL STIPULATION
Notwithstanding any provision to the contrary contained herein, in the event the Closing cannot occur when scheduled due to a COVID-19 related event (“CRE”) resulting in the closing attorney, the mortgage lender and/or the Buyer and/or Seller being unable to perform their respective obligations, then the Closing shall be postponed until 7 days after the specific event delaying the Closing has been resolved. If the Buyer or Seller is unable to perform due to a CRE, the affected party shall promptly notify the other party both of the CRE and of its resolution.
Buyer or Seller having concerns about attending the Closing or self-quarantining (in the absence of a quarantine or government ordered lockdown that specifically applies to Buyer and/or Seller) shall not excuse Buyer or Seller from attending the Closing either in-person or through a power of attorney. Buyer or Seller presently having COVID-19 shall excuse Buyer and/or Seller from attending the Closing until the party is no longer at risk of infecting others. However, in all situations where Buyer and/or Seller cannot physically attend the Closing, Buyer and or Seller shall use their best efforts to fulfill their contractual obligations through a power of attorney.
If the CRE causing the delay results in the Closing being delayed by more than _____ days from the original Closing date, then either Buyer or Seller may terminate this Agreement without penalty upon notice to the other party.
The GAR released this special stipulation in response to the growing number of requests they have received. However, GAR noted that this special stipulation will not be a permanent part of the GAR Forms Package in any of the GAR Forms or the Special Stipulations packet.
“We appreciate the work of our Forms Committee volunteers who made this a priority for our Georgia real estate licensees,” the GAR stated in a release to members. “As we continue to navigate our way through the ever-changing circumstances, GAR will continue to provide you with updates and information as it becomes available to us.”Read More