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Important Tips for Completing a Residential Contract for Sale and Purchase – Part 18: Standards For Real Estate Transactions

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Important Tips for Completing a Residential Contract for Sale and Purchase – Part 18: Standards For Real Estate Transactions

February 2, 2016
Tanishia Stokes
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Force Majeure

Part G of Section 18 discusses the concept of Force Majeure. Force Majeure is defined as occurrences that are not reasonably within the control of the Buyer or Seller such as acts of God, hurricanes, earthquakes, floods, fire, or unusual transportation delays, wars, insurrections, acts of terrorism, etc. When these situations occur, Buyer or Seller will not be required to perform any obligation under the Contact or be held liable for damages to the other party as long as the performance or non-performance of the obligation was the result of Force Majeure. The time periods of the Contract will be extended for the period of time the Force Majeure has prevented performance under the Contract. However, if performance was prevented for more than 14 days after the Closing date, any party has the ability to terminate the Contract by delivering written notice to the other party. The deposit will also need to be refunded and the Buyer and Seller will be released from all further obligations under the Contract.

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