🌩️ What Is a Force Majeure Clause in Real Estate?

A Force Majeure Clause in real estate protects both parties when unexpected and uncontrollable events—such as natural disasters, government shutdowns, or major emergencies—delay or prevent contract obligations from being fulfilled. It allows deadlines to be extended or certain duties to be excused when circumstances are truly beyond anyone’s control.

How a Force Majeure Clause Works

A force majeure clause identifies events that legally excuse delays or non-performance when they are outside the control of the buyer or seller. Rather than penalizing a party for something unavoidable, the clause pauses obligations until conditions return to normal.

Common events covered by a Force Majeure Clause include:

  • Natural disasters — hurricanes, floods, earthquakes, wildfires.
  • Government actions — lockdowns, bans, regulatory delays.
  • Public emergencies — pandemics, disease outbreaks.
  • Infrastructure failures — utility outages, system crashes.
  • Acts of terrorism or war affecting contract performance.

The clause typically extends deadlines, pauses obligations, or allows contract cancellations when performance becomes temporarily or permanently impossible.

Why a Force Majeure Clause Matters

Benefits for Buyers:

  • Protects against losing deposits when emergencies delay closing.
  • Prevents penalties for issues caused by uncontrollable events.
  • Allows inspection, appraisal, and financing deadlines to be extended.
  • Provides fairness during natural disasters or disruptions.

Benefits for Sellers:

  • Ensures sellers are not penalized for delays outside their control.
  • Offers flexibility during emergencies that impact closing or possession.
  • Reduces the risk of legal disputes during large-scale disruptions.
  • Keeps the contract enforceable under extraordinary conditions.

Example of a Force Majeure Clause

A typical force majeure clause might state:

  • “If an event beyond the reasonable control of either party (including natural disasters, government orders, or emergencies) prevents performance of any contract obligation, the affected deadlines shall be extended until the event concludes.”
  • “If performance becomes permanently impossible, either party may cancel the contract without penalty and receive a return of deposits.”
  • “The party invoking force majeure must notify the other party in writing as soon as possible.”

This ensures fairness when unpredictable events interfere with contract timelines.

Why It Matters for FSBO Sellers

FSBO sellers often face challenges coordinating inspections, appraisals, and closing during emergencies. A force majeure clause adds protection and flexibility when circumstances suddenly change.

  • Helps avoid disputes over delayed closings.
  • Protects sellers from being blamed for events they cannot control.
  • Ensures deadlines can be extended fairly.
  • Prevents loss of earnest money or contract cancellations.

When listing with Flat Fee MLS through Brokerless, sellers gain access to contracts that include force majeure protections.

Frequently Asked Questions

What counts as force majeure?
Events outside both parties’ control—such as severe weather, government shutdowns, or emergencies—that make performance impossible or unsafe.

Can a force majeure clause cancel the contract?
Yes. If performance becomes permanently impossible, either party may cancel without penalty.

Do all real estate contracts include this clause?
Most modern contracts do, but wording varies by state and contract form.

Does force majeure excuse payment obligations?
Not usually. It mainly applies to deadlines, access, and performance—not loan funding or deposits.