Ready or not, it’s that time of year again. For Gulf Coast residents and real estate professionals across Florida, hurricane season means revisiting storm preparation plans, restocking supplies, and hoping for a quiet few months. However, with the National Oceanic and Atmospheric Administration (NOAA) forecasting an 85% chance of above-normal Atlantic hurricane activity this season — which officially runs from June 1st through November 30th — a quiet season is not something to count on.
At Opus Title, we work alongside buyers, sellers, and real estate advisors throughout every step of the closing process. That means we’re also here when unexpected events — like hurricanes — threaten to disrupt transactions. In recent years, storms like Irma, Ian, and Idalia have reminded all of us just how important it is to be prepared. Understanding how the FAR/BAR contract addresses storm-related situations can make a meaningful difference in keeping transactions on track when the weather turns. Here are three key provisions worth knowing this hurricane season:
One of the most common questions that comes up after a storm strikes a property already under contract is: “What happens now?” It’s a stressful situation, but the FAR/BAR contract does provide a clear framework. Section 18(M) outlines how storm-related property damage is handled between the time the contract is executed and the closing date.
In general, the contract addresses two scenarios:
• If the cost of restoring damage (including tree pruning and removal) is 1.5% or less of the purchase price, the seller is responsible for that restoration cost, and closing proceeds as planned. If repairs haven’t been completed by closing, 125% of the estimated repair cost is held in escrow.
• If the cost of restoration exceeds 1.5% of the purchase price, the buyer has the right to either accept the property as-is (and receive the 1.5% credit) or walk away with a full refund of their deposit.
As a title agency, Opus Title plays a direct role in facilitating these outcomes at closing — whether that’s coordinating escrow holds for repair costs or processing deposit refunds when needed. Knowing this provision in advance helps everyone move forward with confidence.
Even when a storm doesn’t cause direct damage to a property, it can still disrupt a buyer’s or seller’s ability to meet their contractual obligations — whether that’s scheduling inspections, securing insurance, or making it to a closing table. This is where the Force Majeure clause comes in.
Section 18(G) of the FAR/BAR contract provides that neither party will be held liable for delays or failures to perform if those issues are caused by a Force Majeure event. The contract defines Force Majeure broadly to include hurricanes, floods, extreme weather, and other acts of God.
Importantly, any time periods affected by a Force Majeure event are automatically extended by up to 7 days after the event no longer prevents performance. This gives all parties — buyers, sellers, advisors, and title companies alike — some breathing room to get back on track.
This is one of the most time-sensitive issues during hurricane season, and it’s something the Opus Title team consistently reinforces with real estate advisors and their clients: bind homeowner’s insurance as early in the process as possible.
Here’s why: when a named storm is within a certain distance of Florida, insurance providers may suspend the binding of new policies — and that suspension can continue for several days after the storm has passed. If a buyer is still waiting to bind insurance when a storm rolls in, they could find themselves unable to close on time.
While the Force Majeure provision discussed above may provide some relief by extending deadlines, it’s always better to avoid relying on it. Advisors should encourage buyers to work with their insurance providers early so that coverage is secured well before any storm activity puts that option on hold.
Hurricane season brings added complexity to real estate transactions, but preparation makes all the difference. Real estate advisors who understand how storms can affect contracts — and who communicate that clearly to their clients — are better positioned to keep deals together and provide a steady, reassuring presence when things get stressful.
At Opus Title, we’re here to support advisors and their clients through every step of the closing process, regardless of what the season brings. If you have questions about how a storm may affect an open transaction, or if you’d like to talk through any title or closing-related concerns, don’t hesitate to reach out to our team.
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