In order to protect the best interests of your clients in the days and weeks leading up to their closing date, let them know about new addendums available to help navigate certain circumstances that have occurred because of the coronavirus outbreak.
Both the National Association of Realtors and state-specific associations have crafted options. While they’re primarily designed to benefit buyers, sellers can also feel secure knowing that there are protections in place to help buyers feel more comfortable going through with a transaction.
30-Day Contract Extension. Many states, including Texas and Florida, now offer a 30-day contract extension that lets the buyer push back the closing date for another month. They can also receive their earnest deposit refunded if their financing falls through.
Third-party Financing Addendum. This option is a little more seller-friendly. It accounts for slower loan approval times but doesn’t have as lenient termination clauses.
Amendment to Contract. This is another addendum that’s more generalized and lets the buyer and seller tack on extra time to close when a contract is already underway.
These different addendums appear similar but in reality, the nuances can make a big difference in whether a sale goes through to closing and who gets the earnest deposit.