Reed Smith Client Alerts

The impact of COVID-19 is rapidly evolving, and we are receiving an increasing number of closure notices from government offices that may impact closing logistics of financing and acquisition transactions.

Authors: Rose C. McClave

Issues to be mindful of

Clients should be mindful that the closure of government offices or shelter-in-place orders could raise various issues in connection with closing logistics, including the following issues:

  • The ability to record deeds, mortgages, satisfactions, or other loan or title commitment requirements may be limited;
  • The ability of title companies to conduct date-down searches or municipal lien searches may be affected;
  • The ability of lenders, borrowers, or buyers to fund transactions remotely may be impacted;
  • The ability of surveyors to conduct site visits may be limited; and
  • The ability to respond in a timely fashion to zoning inquiries may be affected.

Potential solutions

  • Drafting of agreements: If parties are in the process of negotiating or drafting a purchase and sale agreement or letter of intent, we suggest adding certain provisions to protect a buyer’s deposit and ability to conduct due diligence in the event there are delays or closures as a result of COVID-19.