House moving workers demand that the coronavirus clause be applied to all contracts
In this way, they will not have legal problems if they cannot fulfill their obligations.
UK homeowners are increasingly insisting that COVID clauses be inserted into their contracts, in case they cannot be moved due to the pandemic. That’s according to the national law firm Devonshires, which said clients are concerned that a local closure may prevent them from moving into their new home.
A COVID clause gives the parties the ability to exchange contracts while ensuring that they are not at fault and that they do not honor the contract with all associated costs if they cannot complete them due to a defined ‘Coronavirus Event.’
“Having the Coronavirus clause in contracts is an excellent idea.”
James Gostling, a Devonshires residential transfer attorney, said: “We are seeing more people insist on the COVID clauses, and I think it is a good idea to consider having one on your transfer contract.”
“They may not work if you have to complete it by a certain date. However, they do offer protection to individuals against breach of their contract if a local block occurs.”
“If you have a standard transportation contract, without a COVID Clause, and you cannot move because you cannot leave your home due to a local closure, then you could face financial penalties.”
“However, you need to be careful about the impact with a sales chain as your sale and purchase could be affected by a Coronavirus event affecting a third party.”
This is how the coronavirus clause works in moving contracts.
In general, if one of the parties does not complete by a certain date, the other party can send a “notification to complete” that makes time essential to complete the contract and seek damages.
Ultimately, the party issuing the notice could terminate the contract, lose the paid deposit, or seek specific performance, provided they are ready and willing to complete it.
A COVID Clause would allow a “long stop date” to complete, meaning that the move must be completed by a certain date if delayed by a Coronavirus Event. Otherwise, sellers could face charges for canceled moves, legal fees, furniture storage, and the cost of alternative accommodation.
The COVID Clauses generally have a long-end date of two to three months, and if the agreement has not been completed before that date, either party has the right to notify the other to have the transaction canceled, and all Buyers are entitled to have their deposits back.
When considering an extended stop date, shoppers should be aware of the recent stamp holiday ending March 31 of next year.
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