March 24, 2020
To address the impact the COVID-19 Public Health emergency may have or is having upon the ability of parties to pending transactions to timely complete any inspections, obtain any financing and close escrow, SFAR has developed an Amendment to its Purchase Agreement.
To address the impact the COVID-19 Public Health emergency may have or is having upon the ability of parties to pending transactions to timely complete any inspections, obtain any financing and close escrow, SFAR has developed an Amendment to its Purchase Agreement.
This Amendment can be found via:
- The Association’s website (note: you must first login to the members-only section of the website for this link to work, which allows you to access the document in Resources/Standard Forms Libraries), and
- zipForm.
This Amendment is ONLY FOR use with RATIFIED CONTRACTS, NOT NEW ONES. A separate form for use with new offers is currently under development and will be released asap this week.
The form provides the following alternatives for the parties to choose from:
Terminate the Contract; OR
Extend existing contingencies with Closing Date also extended by 30 “or ___” days; OR
Establish or Re-establish contingencies with Closing Date extended as above; OR
Extend the Close of Escrow, but do not change or add contingencies.
If alternatives 2-4 above are selected, a Notice to Perform is required to terminate.
This form includes an Expiration to the offer of amendment; so if both Parties do not agree on an alternative, the existing purchase agreement remains effective and unchanged.
SFAR recommends that buyers and sellers engage a qualified real estate attorney if they seek any advice about the impact of the Covid-19 health emergency upon a pending transaction or whether to use the Amendment.
