Texas Realtors Issues COCID-19 Addendum to Contract
From Texas Realtors:
The COVID-19 pandemic is causing unprecedented impact and uncertainty for Texas real estate transactions. Voluntary and mandatory quarantines and the closure of government and private offices may impede the ability of parties to successfully fund and close transactions.
To address these uncertainties, Texas REALTORS® has created the COVID-19 Addendum (TXR-2520). The COVID-19 Addendum provides for a 30-day extension of the closing date in a residential sales contract if the closing cannot occur due to a voluntary or mandatory COVID-19 quarantine or closure.
If the closing cannot occur after the 30-day extension, either party may terminate the sales contract with the earnest money being returned to the buyer. The COVID-19 Addendum also permits either party to terminate the sales contract, with the buyer receiving the earnest money, if the buyer is unable to fund their loan beyond the time provided in the Third Party Financing Addendum due to loss of income from a COVID-19-related issue.
The 30-day extension under the addendum is available if the delay in closing is due to a quarantine or closure that affects the buyer, seller, or other service provider, including, but not limited to, a title company, lender, inspector, or appraiser.
The COVID-19 Addendum may be used as an addendum to a new contract or to amend a currently executed contract. The addendum may be used in conjunction with the following residential sales contracts:
• One to Four Family Residential Contract (Resale) (TXR-1601)
• New Home Contract (Incomplete Construction) (TXR-1603)
• New Home Contract (Completed Construction) (TXR 1604)
• Residential Condominium Contract (Resale) (TXR-1605)
• Unimproved Property Contract (TXR-1607)
• New Residential Condominium Contract (Completed Construction) (TXR-1608)
• New Residential Condominium Contract (Incomplete Construction) (TXR-1609)
Due to the uncertainty caused by COVID-19, buyers and sellers should be especially attentive to timelines in the contract in order to be in the best position to perform their contractual obligations or extend the deadlines as necessary.