Coronavirus “Contingency Clause” in Bay Area Sale

Unfortunate seller left for Wuhan at the beginning of the outbreak, and still has not been able to return home

Bay Area skyline – Photo by Kehn Hermano from Pexels

(BAY AREA, CALIFORNIA)— Inman reported last week of at least one known Coronavirus “contingency clause” in the sale of a Bay Area home. The unlucky seller went to Wuhan, China to celebrate New Year’s—right at the epicenter of the outbreak—and has been unable to make it home in to close the deal.

Here’s a case when home sellers and buyers will be especially appreciative of a good broker. Gabriela Neagu, of Red Oak, is representing the buyer. Unable to get a notary to transfer the power of attorney in the seller’s absence, Red Oak has helped negotiate a contingency clause in which the seller will be required to pay the costs for home inspection and appraisal. Usually, this is in the buyers court, as the appraisal helps determine the buyer’s mortgage. The seller will also pay for an extension of the buyer’s 30-day mortgage rate lock, which guarantees that the promised interest rate on the buyer’s mortgage will not rise in between the time the lock was put in place and the closing. That’s a good indicator that the seller and buyer are still hoping to close the deal.

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