Covid-19 What Agents, Buyers and Sellers need to Know

The current crisis is affecting everyone and changing the way homes are bought and sold. We are experiencing delays that were unexpected. We are seeing financing delayed, lawyers away, clerks away and clients in isolation. What are some things to know?

We are recommending that all agents include something like the following in all agreements of purchase and sale:

*The Buyer shall pay the balance of the purchase price, subject to the usual adjustments by wire transfer.

The parties acknowledge and agree that all closing documentation can be signed electronically and forwarded by email or fax in accordance with the Electronic Commerce Act, 2000, S.O.2000,c.17

The parties agree that the keys to the property shall be left in a lock box at the property and the code to the same is to be provided to the buyer’s lawyer in escrow pending closing of this transaction.

The parties agree and acknowledge that in the event either the BUYER, BUYER’s lender, SELLER, any of their respective attorneys and their service providers becomes the subject of a voluntary or mandatory COVID-19 virus quarantine or closure prior to or at the time for performance hereunder that results in the parties inability to perform on the closing date stated herein, the closing shall be automatically extended at the request of either party for a period of up to ten (10) business days after such quarantine or closure order is lifted, up to a maximum delay of forty five (45) days unless the parties otherwise mutually agreed to extend the performance date farther.

The parties herein acknowledge and agree that they are required to close this transaction notwithstanding any impacts of COVID-19, save and except the closing of the Land Registry Office(s) and all financial institutions. That’s it — that’s the clause. Share it with your real estate lawyer.

We deal a lot with Chicago Title, as our clients’ title insurer. They have just sent out a notice that for the duration of the emergency we can and may accept signatures remotely effected as valid signatures with the originals to be obtained later. This will enormously help us close your deals.

Our lawyers are working remotely and attending at the office only when necessary. Our clerks are also working remotely, but we are functioning like a fine-tuned automobile, firing on all cylinders. We are conducting introductory meetings by Skype or Zoom. We are closing deals the same way. Banking can be worked out.

So what does it all mean?If we all work together and take advantage of current technology with the support of the Law Society, title insurers, real estate agents and all those peripheral people that help us to close deals we will continue to prevail and you can still close your dream house and move in and live happy ever after.

*Special thanks to Jonathan Schwarz of Revolution Realty at www.revolutionrealty.com for providing the clause for this article.

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