The COVID-19 pandemic has affected every aspect of life, and real estate is no exception. The outbreak has brought uncertainty and unpredictability to the market, which is why many real estate professionals and buyers are incorporating a “COVID clause” in their contracts.

A COVID clause is a clause added to a real estate contract that addresses concerns related to the pandemic. The clause can cover a variety of issues, such as delayed closings, mortgage contingencies, and home inspections. It can also address the possibility of future lockdowns or quarantines that may prevent the buyer from occupying the property.

With many buyers unable to view properties in person due to restrictions, the COVID clause can provide protection if they are not satisfied with the property after physically seeing it. They can include provisions to allow for virtual showings and a final walkthrough before closing.

Another provision that can be included in a COVID clause is protection against unforeseeable events. For example, if a buyer is unable to secure financing due to the economic impact of the pandemic, they may be able to walk away from the contract without penalty.

Homebuyers are not the only ones who can benefit from a COVID clause. Sellers can also include provisions in the contract to protect them from unexpected events caused by the pandemic. For instance, if there is a delay in closing due to quarantine measures or travel restrictions, the seller can extend the closing date without incurring any penalty.

Real estate professionals should include COVID clauses in their contracts to address any concerns related to the pandemic and provide protection for both buyers and sellers. It will also help avoid any potential disputes that may arise in the future, as both parties will have a clear understanding of what to expect.

In conclusion, the COVID-19 pandemic has caused significant disruptions in the real estate market. A well-drafted COVID clause in a real estate contract can provide much-needed protection and clarity for both buyers and sellers in these uncertain times. As a responsible buyer or seller, it is essential to work with a reputable real estate professional who understands the importance of including clauses that address the potential risks resulting from the pandemic.