FAR Coronavirus (COVID-19) Extension Addendum to Contract – Explained
The Florida Association of Realtors (FAR) has recently come out with a new extension Addendum for COVID-19. Below is a summary of the Addendum and how it can be used when amending the “As Is” Residential Contract. Any questions please feel free to contact us.
1. This is an Addendum created by the Florida Association of Realtors. This Addendum has not been approved by The Florida Bar.
2. This Addendum was created to be used for the Vacant Land Contract, Commercial Contract and Residential Sale and Purchase Contract. It is not specifically tailored to the FAR Bar “As Is” Contract, which is predominantly used here in South Florida.
3. This Addendum must be signed by both parties and does not provide for automatic Contract extensions due to COVID-19 Restrictions as an amendment to the Force Majeure Section of the Contract would (see my prior blog post for more information, here).
4. When using this Addendum to amend a FAR BAR “As Is” Residential Contract:
- Circle “Residential Contract for Sale and Purchase (second options) and write “As Is” in front of Residential
- Check the box for Closing Date
- Check the box for Financing Period (if deadline has not already passed) and circle Loan Approval Period
- Check the box for Inspection Period (if deadline has not already passed)
- Title Cure Period – this only applies to the Residential Contract if Buyer has notified Seller of any defects that make title unmarketable in writing pursuant to Section 18(A)(ii)
- (Note that Feasibility Study Period and Due Diligence Periods are not applicable to the Residential Contract)
- Check the box for Homeowner’s / Condominium Association Approval (if deadline has not already passed
5. Note: The last paragraph of this Addendum also amends the Financing Contingency of the “As Is” Residential Contract, specifically Section 8(b)(viii) as follows:
- If Buyer has obtained approval for the loan and either the terms/conditions of the loan approval expire or lender refuses to fund the loan due to COVID-19 Restrictions, then Buyer may cancel the Contract by providing written notice to Seller the earlier of Closing Date or within two (2) days of expiration/notice of refusal.
- Buyer is then entitled to a full refund of the deposit and Buyer and Seller are released of all further obligations under the Contract.
If you have any questions regarding new or pending contracts or need help drafting an addendum regarding COVID-19, please do not hesitate to reach out to us at Association Title Services and Becker. We would love to work with you and guide you through this challenging time.
Elana Friedman Polashuk can be reached directly at (954) 629-6652 or via email at EPolashuk@beckerlawyers.com.