The answer is no, your license renewal deadline remains June 30, 2020. That’s because the 60-day license extension announced by Governor Holcomb only applies to licenses that expire within the time period of his executive order (now – April 20, 2020).
Yes, your clients may travel. That’s because of the phrase “access to” in number 16, section A –
Any travel that is related to the provision of, or access to, Essential Activities, Essential Governmental Functions, Essential Businesses and Operations, or Minimum Basic Operations.
Go to http://FindHelp.org for free and reduced-cost services in every city in America. Highlighting hundreds of programs designed to help.
I have seen other language out there floating around for COVID-19 related delays; can I use this language instead of, or in addition to, the suggested language?
It is important to have statewide standardization and uniformity in these difficult times to help with the interpretation of said language and the comfort levels of our members in preparing for a COVID-19 related transactional delay. There is no perfect language as these are not perfect times. They all accomplish the same purpose.
The COVID-19 contract delay language states that the Earnest Money is returned to the Buyer after the automatic extension expires if the parties are unable to close the transaction. Is that fair?
Yes. This return to Buyer of the Earnest Money will only apply if the contract fails to close due to COVID-19 related issues. The failure to close is not due to the fault of the buyer (or seller) as circumstances are outside of their control.
Yes. In dealing with future delays or possible contract cancellations, we suggest the following language be used in the Further Conditions of the Purchase Agreement:
Notwithstanding any other provisions of this Agreement, the parties agree and acknowledge that in the event either the Buyer, Buyer’s lender, Seller, any of their respective service providers, government agency or any other agency becomes the subject of a voluntary or mandatory COVID-19 virus quarantine or closure prior to or at the time of Closing, or if Buyer or Seller is the party to another transaction that is delayed as a result of a voluntary or mandatory COVID-19 virus quarantine, that results in the parties inability to perform on the Closing Date, the closing may be automatically extended by either party for a period of up to ten (10) business days after such quarantine or closure order is lifted, up to a maximum delay of thirty (30) days unless the parties otherwise mutually agree to extend the performance date further. Upon the expiration of any automatic or agreed extension, either party may terminate this Agreement without any further liability to the other party, and the Earnest Money shall be immediately refunded to the Buyer.
This protective language can also be used for transactions already in place by adding it in an Amendment or other applicable legal form.
Public health advice is continuing to evolve. As of March 17, 2020, Gov. Eric Holcomb ordered recomendations to slow the spread of Covid-19 including delaying all “non-essential” public meetings and took further unprecedented actions on March 19, 2020 to protect and support Hoosiers during the COVID-19 outbreak by signing executive orders that extend the closure of schools, provide economic relief and protections for individuals and businesses, and expand unemployment insurance benefits for those impacted by job loss.
“Every day we learn more about how to tackle this monster. We are being thoughtful about how to approach every action we are taking in this national public health emergency and putting Hoosiers’ health and safety first,” said Gov. Holcomb.
Further guidance for professional service providers states:
“Other businesses, including but not limited to legal services, business and management consulting, professional services and insurance services are encouraged to have employees work remotely or telecommute. If that is not possible, they should employ social distancing best practices and be aware of the Trump Administration’s guidance to avoid gatherings of 10 or more people.”
Best practice would be to offer sellers other marketing opportunities and to offer buyers other means to view properties if available:
- A series of Instagram Stories to show the interior of a property you’re selling (remember these expire after 24 hours unless pinned to an Instagram profile).
- A Facebook Live video by the homeowner or agent.
- A Snapchat Story which encourages your followers to take part in a property Q&A.
- A YouTube video which explains the step-by-step process of buying a house.
- A 360 post to give your audience a full, 360-view of the property.
With this in mind, RACI suggests encouraging social distancing by offering sellers and buyers alternate means to market and view properties if they are reasonably available. Remember that many sellers may prefer to not have strangers in their home at the moment, and many buyers may be uncomfortable walking through properties – especially in an open house environment where others are present. Should you decide to offer any of these in-person services be sure to consult with your client, your managing broker, your county’s directives, and take all appropriate health and safety measures to reduce any liability risks to them and to you.