Hurricane Closing Delays

​Can a closing be delayed due to a hurricane or tropical storm?

The short answer is, yes.

Should a delay occur, knowing what your clients legal rights and obligations are can help ease the stress on all involved.

Occasional closing disruptions caused by tropical storms and hurricanes include:

• Disruption of travel plans
• Availability of homeowners insurance
• Availability of needed approvals
• Pre-closing repairs
• Mortgage loan underwriting
• Closing services
• Unforseen property damage after the storm

Most Florida residential real estate contracts provide relief for these issues, including an automatic extension of 5 - 7 days if a “casualty” (e.g. fire, flood, extreme weather, or force majeure) prevents the buyer from obtaining insurance on the property at a reasonable rate or causes “services essential for closing” to be unavailable.

If the disruption continues 30 days after the “casualty”, either buyer or seller may terminate the contract.

A FARBAR Sales Contract-As Is (Residential Improved Property) form grants the exception only when the buyer is unable to get insurance due to extreme weather.

Once a hurricane or storm enters a certain proximity to the area, there might be a pause on issuing an insurance policy for a loan. If there is no insurance, a loan can’t close.

Most willing buyers and sellers usually agree to delay a closing rather than starting all over again.

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