The residential resale contracts do not have termination provisions that could be triggered under something like a pandemic. The default paragraph allows a party to terminate the contract if the other party does not meet its obligations under the contract. The closing date is not designated with “time is of the essence,” or a strict deadline. Therefore, a reasonable extension of the closing due to illness or quarantine from COVID-19 may be considered by the parties. Ultimately, it is up to the parties of the contract how they maneuver a delay in performing their contractual obligations because of COVID-19.
The incomplete construction contracts do have provisions addressing the effects of COVID-19, like construction delays caused by nonavailability of materials. In such a scenario, the seller may substitute materials, equipment, and appliances of comparable quality for those specified in the construction documents. If there are no substitute materials of comparable quality and price available, the delay will be added to the time allowed for substantial completion of the construction. However, in no event may the time for substantial completion extend beyond the closing date. If, at closing, the seller fails to satisfy his obligations, the buyer should look at the default paragraph for remedies, including extending the time for performance or terminating the contract and receiving the earnest money.