Real Estate closings may suffer delays when a hurricane is on its way to the Florida coast. Once the National Weather Service issues a warning or watches the Insurance companies hold the key of all mortgage transactions, which means all closings are subject to delays.
Homeowner Insurance
All lenders require a Homeowner’s insurance to close unless it is an all-cash deal.
Now some Insurances do accept the binding method. This means once you know your real estate closings date is around the hurricane season you should request the insurance agent to bind the policy to the closing date. As long as the binding was issued before the NWS issue a hurricane/storm warning or watch the insurance company would honor the policy.
Having a local insurance agent is important they know exactly how to proceed in order to avoid major delays. All contracts in the State of Florida include a force majeure clause meaning that a closing can be delayed if insurance is not properly bonded.
After a storm, a buyer needs to request a re-inspection and the seller has to fix any damage caused by a storm. The force majeure clause provides the buyer or seller 30 days to cancel the closing after the storm passes.
More details
Additionally, the office’s as Coldwell Banker immediately instructs its agent on how to proceed with all their active listings and pending transactions. Sale Associate immediately send
- Q&A with helpful information.
- Sellers receive Hurricane/Storm Addendum Real Property Disclosure.
- Letters to buyer and seller with steps to follow.
- Listing Withdrawal Agreement allowing a seller to withdraw due to storm damage or impact.
- A form for Vendors that will assist with repairing damage due to the storm.
- And a Checklist on how to use the provisions related to hurricane/storm damage.
It is important to seriously keep informed all customers and track all transactions during hurricane season in order to avoid complications or delays.
