Great news: the Florida standard real estate contract known as the FloridaRealtors/FloridaBar-ASIS-5x contains a built-in force majeure clause. This clause protects the transaction, ensuring that all parties are granted the necessary time they need to close and that the buyer receives the home in the expected condition—not one missing a roof!
There are essentially two provisions in the FarBar Contract that address severe weather and emergency situations: Paragraph 5(b) and Paragraph 18 G.
“If an event constituting “Force Majeure” causes services essential for Closing to be unavailable, including the unavailability of utilities or issuance of hazard, wind, flood, or homeowners’ insurance, Closing Date shall be extended as provided in Standard G.”
“Buyer or Seller shall not be required to perform any obligation under this Contract or be liable to each other for damages so long as performance or non-performance of the obligation, or the availability of services, insurance, or required approvals essential to Closing, is disrupted, delayed, caused or prevented by Force Majeure. “Force Majeure” refers to hurricanes, floods, extreme weather, earthquakes, fire, or other “acts of God”….which, by the exercise of reasonable diligent effort, the non-performing party is unable as a whole or in part to prevent or overcome.”
According to Paragraph 18 G, all time periods, including the Closing Date, will be extended for a reasonable period up to 7 days after the Force Majeure no longer prevents performance under the Contract. However, if such Force Majeure continues to prevent performance for more than 30 days beyond the original Closing Date, either party may terminate the Contract by delivering written notice. In that case, the Deposit will be refunded to the Buyer, fully releasing both Buyer and Seller from all further obligations.
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