Update – Stay at Home Order re: real estate transactions

Guidance from the Colorado Attorney General's Office was just provided in relation to real estate practice during the Stay at Home order. The guidance was that the only aspect of a real estate transaction that qualifies as an exception under this order is the actual closing. Home inspections & final walk through's, even on properties that are under contract are not allowed per the AG's office.

There is a mechanism in place to help with adjusting dates within an in-process transaction. A COVID 19 Addendum has been promulgated by Colorado Bar Association and approved for use by the the Real Estate Commission. This form allows the parties to negotiate and put in place, adjustments to dates/ deadlines  that are necessary due to the Stay at Home Order. Here is the introductory paragraph from the form.

In the event, due to COVID‐19, a government entity (e.g.: 24 Clerk and Recorder, etc.) or any third‐party providing services or required information in
25 connection with the Contract (e.g.: lender, appraiser, title company, surveyor, Owner’s 26 Association, etc.) (“Settlement Service Provider”) closes its offices, suspends operations or 27 otherwise prevents the Buyer and/or the Seller from timely performing under the Contract as 28 originally contemplated, the outstanding Dates and Deadlines in Section 3.1. of the Contract, will 29 each be extended by the Delay Period starting on the date the Buyer and/or Seller are once again 30 able to perform.

Parties are still free to enter into and consummate real estate purchases, however the above restrictions will mean in-person showings, inspections and final walk throughs are not allowed.

It will be interesting to see how buyers respond to this. I will be tracking new "under contract" properties while this order remains in effect and will update my blog regularly as to what I see.