Practical Considerations in the Inland Empire  

As many now know, Riverside County’s Public Health Officer, Dr. Cameron Kaiser, ordered the immediate cancellation of events with anticipated attendance of 250 or more from now through April 30, 2020. (“Order”)  The Order, which has some exceptions for necessary entities such as courts and schools, has created widespread questions relating to the indirect impacts on the real estate community. 

Practical Considerations in the Inland Empire  

As many now know, Riverside County’s Public Health Officer, Dr. Cameron Kaiser, ordered the immediate cancellation of events with anticipated attendance of 250 or more from now through April 30, 2020. (“Order”)  The Order, which has some exceptions for necessary entities such as courts and schools, has created widespread questions relating to the indirect impacts on the real estate community. 

With the Order closing down events, clubs, and other large gatherings, it is likely to create some short term economic impacts on individual’s abilities to meet their monthly rental obligations.  However, the long-term economic impacts are still uncertain as the Nation’s market conditions are still in flux.  In the event that employers are forced to conduct layoffs due to the short term effects of the Order, property managers may experience an increase in the number of tenants who are unable to pay rent.

From an ethical perspective, REALTOR® members should also weigh their fiduciary duties and obligations to their clients to safeguard their interests when contemplating scheduling open houses.  Many sellers may not fully appreciate the potential exposure to sickness when they open up their home to prospective buyers.  At the very least, REALTOR® members should advise their clients of the potential impact, potential exposure to sickness, and may want to take an additional step to recommend that the seller clean their homes after hosting an open house.

The order is also significant as it is indicative of the State and County’s intent to take proactive steps to limit the potential spread of COVID-19 throughout the local communities.  In the event that brokerages are ordered to immediately cease business pursuant to a similar order, they will want to immediately contact their insurance to determine if they can avail themselves to their business interruptions provisions, if any, due to the cessation of business. 

In the meantime, brokerages, salespersons, and the general public should closely monitor both the market and their counties orders for assessing the potential impacts on the industry as we move through an ever-changing and unique time.  If you have any questions, concerns, or wish to discuss employment, payment of employees, sick leave, paid time off, self-quarantining employees, obligations to remote employees, or real estate scenarios which you believe may arise in your business, please do not hesitate to contact Tyler Law LLP as we are ready, willing, and able to guide you through the uncertainties of current events.