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8/2/2022

Hurricane Closing Delays

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​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.

If this content is helpful please share with clients and friends. Follow Sun Life Title on Instagram, Facebook and LinkedIn for more industry news and education.

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