In light of the Covid 19 crisis, many parties are concerned about whether or not their real estate deals will be able to complete. What happens if the banks close? What happens if the Land Title Office shuts down, or my lawyer’s office has to close? Or what if I’m ordered into quarantine?
Many real estate lawyers and Realtors are considering adding a clause to their contracts to deal with the worst case scenario. It may be worthwhile to discuss adding a clause to your contracts, for example:
In the event the parties are incapable of completing their obligations pursuant to this Contract, as a result of a governmental order, a quarantine order, a land title office closure, or a closure of banking institutions, as a result of the Covid19 crisis (the “Event”), the parties mutually agree, upon written notice to the other side of such Event, to extend the Completion, Possession, and Adjustment dates by 30 days, or the next following business day, and time shall remain of the essence. The parties agree to use all commercially reasonable efforts to complete the transaction on time.
We cannot be certain that this crisis will be resolved within 30 days, however, careful thought should be given before extending indefinitely. It may be that a 60 day extension is more reasonable. However, the longer the Covid19 restrictions are in place, the less likely some parties may be able to afford to complete a home purchase. In the event the restrictions are still in place after 30 days, the parties would then have to negotiate the next steps.
If you have a real estate deal scheduled to close in these uncertain times, don’t hesitate to call us to discuss your options.
COVID-19 Series for Business Owners: Commercial Leasing for Tenants
For most business owners, entering into and abiding by a commercial lease is a standard part of running a business. Most business owners have seen their businesses through ups and downs, times of boom and times of bust – these are simply part of running a business, resourceful business owners are able to find their way out. However, the shut down we’re currently witnessing presents real problems that even the most resourceful business owner won’t be able to navigate – how is anyone supposed to cover their lease payments when they’re not able to operate their business?
Parenting Time During the COVID-19 Pandemic
If you have kids and you are separated or divorced from the other parent of those kids, there is a good chance you have an Agreement of some sort (written or unwritten) or a Court Order outlining how you and that other parent share time and responsibilities for your kids. You may be wondering what, if any impact, the pandemic has on that Agreement or Court Order.
Rent & COVID-19
With the outbreak of the COVID-19 pandemic, the Federal and Provincial Governments are urging Canadians to stay home and practice social distancing. As a result, we have seen massive layoffs and many Canadians are struggling to pay their bills. With April 1st approaching, many Canadians are asking: What do I do if I can’t pay rent this month?