Real estate closing in the new normal

Topic description: Are real estate companies open for business? Can closing be extended due to the pandemic? Is a signed deed effective even if it has not been registered in property records due to delays under COVID-19? These are some of the frequently asked questions homebuyers have as they navigate their way through the new way of doing things under the new normal. In this article, we provide answers to some of those top FAQs, including adding possible COVID-related clauses to a contract, and employing virtual showings, 360-degree walkthroughs, and electronic signatures in lieu of in-person interactions. Find out what else buyers are concerned about in this article. COVID-19 has affected the way real estate firms operate. Before the pandemic hit in early 2020, buying a home or commercial property had long been a series of personal transactions. Buyers and sellers met with a real estate agent, toured spaces, held open houses, and signed closing documents in person with legal witnesses from both sides. However, with the emergence of the pandemic, the practice of meeting and transacting in person has changed dramatically. Since most people don’t want to risk venturing out of their bubble, buyers and sellers have had to find creative solutions. More importantly, it has become even more necessary to bring in seasoned professionals to help manage the process. Many of our clients have asked how real estate deals are closed in the new normal. Here are our FAQs to address your real estate concerns:

Are you open for business?

Yes. Real estate services like ours are still considered essential services in Texas. However, in some ways, we cannot operate in the same manner as we did before the pandemic. As recommended by the state government of Texas, we implement social distancing and telecommuting whenever possible. We also strictly follow health and safety protocols, such as cleaning and disinfection, hand hygiene, and respiratory etiquette, at our clients’ properties and in our offices.

A member of our household tested positive for COVID-19. Should we disclose this information?

If a household member has tested positive for COVID-19, it must be disclosed. While there is no need to reveal the individual’s identity, do inform your real estate agent, doctor, and local authorities. They will need to contact anyone who has been on the property for brokerage activities in the last 14 days. A two-week self-quarantine may also be required.

We are about to close a deal, but one of the parties tested positive for COVID-19. Can either of us terminate the contract?

In Texas, home resale contracts do not contain any termination provisions that could be triggered under unusual circumstances such as a pandemic. If there is no strict deadline, both parties can negotiate a reasonable extension due to COVID-19 illness or quarantine.

Can the property be thoroughly cleaned after the seller has moved out?

Suppose a buyer is concerned that the coronavirus will survive on the property after the seller moves. In that case, the buyer may request disinfection or deep cleaning at the seller’s expense. But what if the seller does not agree to shoulder the cost? In this case, the buyer may delay moving into the property to reduce the risk of exposure to the virus.

I am concerned about possible exposure to COVID-19 if appraisers and other professionals enter my property. What are my options?

Consider virtual alternatives, such as photographs, 360-degree walkthroughs, live streaming, video conferencing, and other technologies. To sign documents, ask your real estate agent to go paperless and submit and sign documents electronically instead. Another option would be to practice social distancing, prescheduled appointments, and health and safety protocols when visiting, touring, and meeting face to face.

Can we extend the closing due to the pandemic?

Unfortunately, no. The terms and conditions in the real estate contract still apply.

Is a signed deed effective even if it has not been registered in property records due to delays under COVID-19?

Yes, the deed is effective from its execution, even without being recorded. The buyer is the owner of the sold property as soon as closing and payment occur, regardless of whether the deed has been registered.

Can the contract contain clauses related to the pandemic?

Standard contracts do not include a clause for unforeseen situations, such as a pandemic. We recommend consulting your broker and attorney about adding COVID-19-specific clauses.

Closing with Berkshire Hathaway HomeServices (BHHS) Caliber Realty

Closing a real estate transaction can be tedious and time-consuming. There are documents to sign, lawyers to meet, and appraisals to arrange. The closing stage, in particular, can be the most challenging part of navigating real estate transactions during these unusual times. However, it doesn’t have to be. Virtual showings, 360-degree walkthroughs, and electronic signatures have become much more widespread and acceptable. Strict government guidelines are in place. Most of all, you can rely on the guidance of an experienced real estate agent to steer you through the rough waters of real estate closing. If you plan to buy a house in Texas or commercial real estate in College Station, contact Berkshire Hathaway HomeServices (BHHS) Caliber Realty. To get in touch with our team of experienced real estate agents, call 979.694.8844 or email sales(at)bhhscaliber(dotted)com.

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