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MEMORANDUM
 
TO:   Arizona REALTORS® Brokers and Managers 
 
FROM:  The Arizona REALTORS® 
 
DATE:  March 18, 2020 
 
REGARDING: COVID-19 Contractual Provisions
 
The current world-wide COVID-19 (Coronavirus) pandemic has had unprecedented impacts on real estate transactions, including, but not limited to, self-imposed and governmentally required quarantines and closures of both governmental and private offices required to fund, close and record real estate transactions.  
 
To address such possibilities, the Arizona REALTORS® has prepared contractual language that parties may wish to insert into an Addendum or in the Additional Terms section of the Purchase Contract.  
 
Sample Provision One allows either party to extend Close of Escrow under identified circumstances but does not excuse performance. Sample Provision Two provides for the same extension rights, but also allows either party to cancel without penalty upon the expiration of any such extension. 
SAMPLE PROVISION ONE
 
Notwithstanding any other provisions of this Contract, the parties agree and acknowledge that in the event either Buyer, Buyer’s lender, Seller, Escrow Company or appropriate county recorder’s office becomes the subject of a voluntary or mandatory COVID-19 virus quarantine or closure prior to or at the time of Close of Escrow, or if in the event of a Buyer Contingency Addendum pursuant to which Buyer or Seller is a party to another transaction that is delayed due to a voluntary or mandatory COVID-19 virus quarantine, that results in a party's inability to perform on the Close of Escrow date, the closing may be automatically extended by either party for a period of up to ten (10) business days after such quarantine or closure order is lifted unless the parties otherwise mutually agree to extend Close of Escrow.
 
SAMPLE PROVISION TWO

Notwithstanding any other provisions of this Contract, the parties agree and acknowledge that in the event either Buyer, Buyer’s lender, Seller, Escrow Company or appropriate county recorder’s office becomes the subject of a voluntary or mandatory COVID-19 virus quarantine or closure prior to or at the time of Close of Escrow, or if in the event of a Buyer Contingency Addendum pursuant to which Buyer or Seller is a party to another transaction that is delayed due to a voluntary or mandatory COVID-19 virus quarantine, that results in a party's inability to perform on the Close of Escrow date, the closing may be automatically extended by either party for a period of up to ten (10) business days after such quarantine or closure order is lifted, up to a maximum delay of thirty (30) days unless the parties otherwise mutually agree to extend Close of Escrow. Upon the expiration of any automatic or agreed extension, either party may terminate this Agreement without any further liability to the other party, and the Earnest Money shall be immediately refunded to Buyer.
Pursuant to the above language, an extension is provided even in the event of a voluntary quarantine by either Buyer or Seller. If the parties are concerned that such an extension could be abused, they may choose to insert additional contract language that requires the party claiming the need for a voluntary quarantine to first provide a note from a health care professional documenting the need for the self-imposed quarantine.

Finally, Buyers and Sellers should be advised in writing to seek the advice of independent legal counsel should they have any questions about their rights and obligations under the above language or the Purchase Contract as a whole.