COVID-19 and real estate

COVID-19 and its impacts on real estate

Much like other sectors of life, COVID-19 is also having its impact on real estate. In response, Mississippi REALTORS® have been working diligently to respond to some of the challenges in this industry. Among these changes are the following in forms.

COVID-19 Addendum to the F1 Contract for the Sale and Purchase of Real Estate (F1)

This addendum provides some relaxing of the “Time is of the essence” provision of the Contract. In turn, it acknowledges the parties’ right to cooperate in good faith and make reasonable allowances for delays due to quarantine or closure related to the COVID-19 state of emergency.  This addendum allows to alter deadlines and contingencies as the parties may agree. Of course, it is subject to the right of either party to terminate the Contract if more than 30 days elapses past the Closing Date in the contract.  The form also offers an option to cover the situation where a seller loses their financing due to COVID-19.

COVID-19 Addendum to the Mississippi REALTORS® Residential Lease Agreement (F3)

Designed for the investment owner, this enables the Lessor and Lessee to make allowance for a verifiable medical quarantine due to COVID-19.  This Addendum gives the Lessor the ability to question whether a requested delay based upon medical quarantine is, in fact, due to a medical diagnosis. So, the Lessor maintains the right to decide whether the extension request is valid or not. The Lessee must provide sufficient proof of a COVID-19 medical quarantine. Otherwise, the Lessee is not granted an extension. In turn, the Lessee must honor the terms of the Lease to surrender the Premises by the lease expiration date.  Verified extensions are considered week-to-week and provision is made for periodic rent during any extension.

COVID-19 Addendum to the Mississippi REALTORS® Listing Agreement (F4)

This listing agreement addendum enables members to deal with COVID-19 issues in the context of an existing listing.  The special provision adds to the listing agreement for “Showing or Inspection of the Property” to address COVID-19 situations. Also, it includes protection for brokers and agents from claims relating to a listed property.  Lastly, this form provides options to a broker when an owner imposes restrictions on access related to COVID-19 that trigger MLS rules or render the listing unmarketable.

COVID-19 Disclosure and Waiver Regarding Physical Property Showing or Inspection

Members are provided an option for clarifying responsibility and risk among the owner, visiting parties (e.g., potential buyers, inspectors, appraisers, others), and the brokers and agents involved with a particular property.  This versatile, multi-party form protects brokers and agents against potential claims arising out of a particular property.