The "Covid Clause" and Why Your Contract Should Include One

Contracts being negotiated in the current market will almost always have some kind of a "covid clause" to protect both the buyer and seller from the uncertainty of the times.  

A party may want protection from being held in default because of delays caused by appraisals, financing, board applications, walk-throughs, etc. taking longer than usual as a result of having to be done virtually (if at all).  Another common reason for delay: most buildings are restricting move-ins and move-outs, so current occupants are stuck and new owners can't take possession.  

The clause might address protections in case the buyer loses a job or the investment account funding the downpayment takes a steep dive.  Should you find yourself with concerns like those we've mentioned, consult carefully with your attorney.  And remember sometimes there is an out-of-the-box solution that can  move things along - that's where we can help!