“Outside the Reasonable Control of the Delayed Party”

[Note to Readers: The views expressed here are solely those of Ross Kaplan, and do not represent Edina Realty, Berkshire Hathaway, or any other entity referenced.  If you need legal advice, please consult an attorney.]

At least one Twin Cities broker — Edina Realty — is now including boilerplate language in its purchase agreement addressing what happens if there is a coronavirus-related hiccup prior to closing.

Called a “delay provision,” it automatically provides for an extension if one of the parties to the contract — or a professional integral to the deal (e.g., a lender, attorney, or vendor) — is unable to timely perform their role.

Real Estate Contracts in Coronavirus Age

So, what is the test for defining a legitimate delay?

Whether the delay is “outside the reasonable control of the delayed party.”

Sounds fair to me . . . 

P.S.: One local photographer is now promoting $75 drone shoots to spur business.

Normal cost: $200 – $400.

See also, “The Corollary to Buying a Home in a Pandemic: Selling One“; ““Buying a Home During a Pandemic”: The NYT Interviews 2 Minneapolis Couples“; and “Coronavirus and the Housing Market.”

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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