Guest Blog by Adade Amenounve,
Homeowner Development Coordinator
You might have heard of purchase agreement addendums, a common one being repair addendums added after an offer is accepted and a home inspection is completed. The repair addendum includes any repairs that must be completed and who will complete them before closing. Read all about repair addendums here.
Now, because of COVID-19, many homebuyers and sellers are offering a new purchase agreement addendum focused on COVID-19.
Governor Walz issued Executive Order 20-78 on July 13, 2020, extending his peacetime emergency order through August 12, 2020. Thus, all existing executive orders remain in effect until the peacetime emergency Executive Order is rescinded or until it is terminated by a majority vote of each house of the Legislature, whichever occurs earlier.
Meeting at the closing table is the main goal of all parties in a real estate transaction. But COVID-19 might impact the ability of both parties to make it to closing or to complete everything required of them prior to closing.
For that reason, the Minnesota Association of Realtors came up with a new addendum to the purchase agreement to help in case parties of the transactions are not able to perform due to COVID-related issues (you can watch a video about this addendum here). It is a good protective measure to consider during these times.
The COVID-19 Addendum
This form is to protect both buyer and seller. Both parties agree to work in good faith to perform their obligations under the purchase agreement, and are protected if there are any unforeseen events that could delay or cancel closing beyond the control of the parties to the transaction.
The Governor understands that we are in a pandemic and this can negatively impact the transaction. For that reason, there were a few provisions made for the circumstance:
If the buyer or seller is hospitalized or is following a quarantine order by a government appointed official or attending physician;
Or if the seller and buyer are not able to get the services they are required to perform from home inspectors, insurance agencies, attorneys, and government agencies;
Then the parties can agree to give more time of closing or to cancel the transaction.
The real estate industry is still striving to protect parties to the transaction. Communicating your situation to your agent is very important in these uncertain times.
What Habitat homebuyers should know
Right now, all of our operations are being done electronically. However, closings are still done at our title company. For more information, please visit our Buy with Habitat webpage and check out our First-Time-Homebuyer Guide.
As always, Habitat is here to support you. Find our full list of resources on our COVID-19 response webpage.