Every Florida agent should have this on the calendar: hurricane season officially runs from June 1 to November 30. One silver lining for buyers and sellers alike. Florida offers permanent sales tax holidays on hurricane supplies, making it easier for homeowners to stock up on essentials like generators, batteries, and storm shutters year-round.
Force Majeure: What Happens When a Storm Interrupts a Closing?
The force majeure clause addresses delays caused by events beyond anyone’s control, such as hurricanes, which are notably relevant here in Florida. However, it is worth noting that force majeure can also apply to other unforeseeable and uncontrollable events such as: other extreme weather or Acts of God, unusual transportation delays, wars or political/civil unrest, government mandates and/or shutdowns, epidemics, and pandemics.
Under the FAR/BAR “As Is” residential contract, a named storm or hurricane can trigger an automatic extension of the Closing date. Section 18(G) specifically states:
• All contractual time periods affected by a force majeure event will be reasonably extended for up to 7 days after said event is cleared.
• Such an automatic extension will not last forever—there is an outside window of no greater than 30 days beyond the original Closing date.
• If the Closing must be extended further than 30 days beyond the original Closing date, either party can cancel the Contract, and the buyer shall receive a refund of the Deposit.
Risk of Loss: Who’s on the Hook If the Property Is Damaged?
Closely related to force majeure is the risk of loss clause, which determines who bears financial responsibility if the property is damaged between contract signing and closing. Section 18(M) states:
• If the cost to restore the Property does not exceed 1.5% of the Purchase Price, Seller is obligated to restore the Property prior to Closing.
• If Seller cannot complete such repairs prior to Closing, a sum of 125% of the cost to repair/restore the Property (but not to exceed 1.5% of the Purchase Price) shall be held by the Escrow Agent after Closing.
• Any unused escrow amount shall be returned to the Seller once the repairs/restoration has been completed in full.
• If the cost to repair/restore the Property exceeds 1.5% of the Purchase Price, Buyer can elect to either take the property as is with the 1.5%, or cancel the contract and receive a refund of the Deposit.
Agents representing both buyers and sellers should walk clients through this clause before a storm is on the radar, not while packing up for a mandatory evacuation.
What Should Agents Care About After a Storm?
Once the storm clears, a new set of issues surfaces and agents are often the first call clients make. Here is the list of talking points post-storm:
• Mold: Florida’s heat and humidity mean mold can develop within 24–48 hours of water intrusion. Agents should be ready to advise clients on prompt remediation and documentation by a licensed professional, both to protect health and to preserve the value of the property in any future sale.
• Insurance Claims: Storm damage almost always means an insurance claim is in play. Agents should understand the basics of how claims affect a pending or future transaction, including how unresolved claims can complicate a sale and why buyers should ask about claims history upfront.
• Updating Seller Disclosures: The golden rule after a storm: disclose, disclose, disclose. Any damage, repairs, or claims must be reflected in updated seller disclosures. Skipping this step doesn’t just risk the deal, it risks liability for both the seller and the agent.
• Special Assessments: For condos and HOA communities, storm damage frequently leads to special assessments, additional charges levied on owners to cover repair costs not fully covered by insurance or reserves. Agents should always check with the association about pending or anticipated assessments before listing or writing an offer on a unit in a storm-affected community.
The Bottom Line for Agents
Hurricane season isn’t just a scheduling headache it touches contract law, insurance, disclosure obligations, and HOA finances all at once. The agents who come out ahead are the ones who:
1. Know their contract’s force majeure and risk of loss language
2. Have a post-storm checklist ready for mold, insurance, and disclosure issues
3. Flag potential special assessments early in condo and HOA transactions
Being the agent who can answer these questions confidently, instead of scrambling after a storm hits, is what builds lasting client trust in hurricane-prone markets.
If you have any questions or concerns about what happens when a storm interrupts a closing, talk to your trusted attorney.
