What can I do when a buyer is quarantined?

Q: I am under contract to sell my house and the buyer is telling me they cannot close because they are unable to leave their house for the closing. With all that is going on, I am sympathetic, but I need to sell my home. What can I do? — Miriam

A: A national emergency, such as the coronavirus pandemic, does not automatically cancel contracts nor stop the rule of law. You will need to look at your purchase and sale contract to determine your rights.

Since nothing like the current crisis has happened before, it is unlikely you will find anything directly addressing this issue.

Most agreements contain a “force majeure” clause that addresses what happens if the unexpected occurs. Earthquakes, severe weather, fire and even acts of terrorism are discussed, but not pandemics, and the protections under the contract concern systemic failures, such not being able to bind hazard insurance due to an impending hurricane, rather than calamities that hurt an individual buyer, such as unemployment or illness.

When the force majeure clause comes into play, the parties get to delay the closing for about a month, before it can be canceled.

Since it is unlikely that the force majeure clause will get your buyer off the hook, they will need to use their best efforts to get the deal closed or face losing their deposit.

While they may be unable to attend the walk-through or closing in person, there are electronic options that can be substituted.

For example, their real estate agent, or even the seller, can do a live video walk-through from their smartphone, and many closing agents can notarize the closing documents over the internet.

Many states have passed “Remote Online Notarization” laws creating a secure method using special software to notarize critical legal documents remotely.