Coronavirus Addendum/Amendment from CA Association of Realtors
Found this today. We're just a few days away from closing so if it's relevant for me it might be for you too.
(apologies if this is already posted elsewhere)
https://www.car.org/aboutus/mediacenter/news/covidformcva?src=redalert
CALIFORNIA ASSOCIATION OF REALTORS®
CORONAVIRUS ADDENDUM/AMENDMENT (C.A.R. Form CVA, 3/20)
The following terms and conditions are hereby incorporated in and made a part of or, as applicable, an amendment to, the Purchase Agreement or n Other _____________________________________________________ dated _____________ (the “Agreement”) on property known as _______________________________________________________ (“Property”) in which _______________________________________________________________________ is referred to as Buyer and ___________________________________________________________________________ is referred to as Seller.
From time to time, events overtake the ability of the parties to a contract to allocate the risk of nonperformance. Such events are often addressed by a “Force Majeure Clause” allowing a party to suspend or terminate performance when circumstances which the parties could not have anticipated, or which are beyond their control make performance of the contract impossible or impracticable.
The current world-wide Coronavirus (COVID-19) pandemic has had unprecedented impacts on real estate transactions, including, but not limited to, travel restrictions, self-imposed and governmentally required isolations, and closures of both governmental and private offices required to fund, close and record real estate transactions.
Accordingly, in the event complying with the Close Of Escrow is not possible or practical as a result of unforeseen circumstances related to the COVID-19, such as Buyer’s or Seller’s inability to travel to sign documents, closings of or delays in related government and business services, including for example delays by or closing of lenders, title/escrow, county assessor/ recorder, or otherwise (hereinafter “Unforeseen Circumstances”) the Parties Agree as follows. All other provisions of the Agreement remain in full force and effect:
-
Buyer and Seller agree to postpone Close Of Escrow by up to 30 or ____ Days to accommodate Unforeseen Circumstances, after which either Party may cancel the Agreement and Buyer’s deposit shall be returned to Buyer, minus fees and costs incurred by Buyer. No Notice to Buyer or Seller to Perform (C.A.R. Forms NBP and NSP) nor Demand to Close Escrow (C.A.R. Forms DCE) shall be required.
-
n If checked: Buyer and Seller agree notwithstanding that Buyer may have removed their loan contingency, if Buyer’s inability to fund their loan and Close Escrow is due to Buyer’s loss of income from COVID-19 related issues, then either Party may cancel the Agreement and Buyer’s deposit shall be returned to Buyer, minus fees and costs incurred by Buyer. No NBP or DCE shall be required.
-
n If checked: Buyer and Seller agree to mutually cancel the Agreement and Buyer’s deposit shall be returned to Buyer, minus fees and costs incurred by Buyer.
-
Other: __________________________________________________________________________________________ _________________________________________________________________________________________ _________________________________________________________________________________________
By signing below, Buyer and Seller each acknowledge that they have read, understand, accept and have received a copy of the Addendum.
Date _______________ Date _______________
Buyer ___________________________________________ Seller ___________________________________________ Buyer ___________________________________________ Seller ___________________________________________
© 2020, California Association of REALTORS®, Inc. United States copyright law (Title 17 U.S. Code) forbids the unauthorized distribution, display and reproduction of this form, or any portion thereof, by photocopy machine or any other means, including facsimile or computerized formats. THIS FORM HAS BEEN APPROVED BY THE CALIFORNIA ASSOCIATION OF REALTORS®. NO REPRESENTATION IS MADE AS TO THE LEGAL VALIDITY OR ACCURACY OF ANY PROVISION IN ANY SPECIFIC TRANSACTION. A REAL ESTATE BROKER IS THE PERSON QUALIFIED TO ADVISE ON REAL ESTATE TRANSACTIONS. IF YOU DESIRE LEGAL OR TAX ADVICE, CONSULT AN APPROPRIATE PROFESSIONAL. This form is made available to real estate professionals through an agreement with or purchase from the California Association of REALTORS®. It is not intended to identify the user as a REALTOR®. REALTOR® is a registered collective membership mark which may be used only by members of the NATIONAL ASSOCIATION OF REALTORS® who subscribe to its Code of Ethics.
Published and Distributed by:
REAL ESTATE BUSINESS SERVICES, LLC. ®
a subsidiary of the CALIFORNIA ASSOCIATION OF REALTORS
525 South Virgil Avenue, Los Angeles, California 90020
CVA 3/20 (PAGE 1 OF 1)
CORONAVIRUS ADDENDUM/AMENDMENT (CVA PAGE 1 OF 1)