Some state real estate commissions require the use of a buyout addendum when a real estate broker enters into a contract to purchase a property: i) concurrent with the listing of such property; ii) as an inducement or to facilitate the property owner's purchase of another property; or iii) continues to market that property on behalf of the owner under an existing listing contract.
It is generally recommended that a real estate broker use such an addendum when he/she continues to market the property and is only agreeing to buy it to make the deal. If a licensee actually wants to own the property, using the addendum does not solve the conflict of interest.
This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
Alabama Real Estate Broker Buyout and Price Addendum to Contract to Buy and Sell Real Estate is a legally binding agreement used in Alabama real estate transactions. This addendum specifically addresses the buyout and price negotiations between the buyer and seller, providing clarity on important terms and conditions. The Alabama Real Estate Broker Buyout and Price Addendum to Contract to Buy and Sell Real Estate typically includes the following key elements: 1. Buyout Provision: This section outlines the specific terms and conditions under which the buyer or seller can terminate the contract by buying out the other party. It typically includes details on the buyout process, timeline, and any associated costs or penalties. 2. Price Negotiations: This section outlines the protocol for price negotiations between the buyer and seller. It may include provisions on submitting counteroffers, setting deadlines for acceptance, and the role of the real estate brokers in facilitating the negotiation process. 3. Appraisal Contingency: If applicable, this section outlines the conditions under which the contract is contingent upon a satisfactory appraisal. It may specify the time frame within which the appraisal must be conducted and the actions to be taken if the appraisal value differs significantly from the contract price. 4. Earnest Money: This section covers the handling of the earnest money deposit, including details on how it will be applied in case of buyout or termination. 5. Closing and Disbursement: This section provides instructions on the disbursement of funds upon successful completion of the transaction. It may touch upon the allocation of closing costs, distribution of proceeds, and any necessary documentation required for closing. In some cases, there may be variations or additional types of Alabama Real Estate Broker Buyout and Price Addendums. For instance: 1. Lease-Purchase Addendum: This addendum is used when the buyer and seller agree on a lease-purchase arrangement, allowing the buyer to occupy the property while paying rent with the intention of buying it at a later date. It includes provisions relating to the lease terms, purchase price, and other conditions related to such a lease-purchase agreement. 2. Inspection Contingency Addendum: This addendum includes specific provisions related to inspections of the property before finalizing the purchase. It outlines the rights and responsibilities of both parties regarding inspections and specifies the timeline for completing them. 3. Financing Addendum: This addendum is used when the buyer's ability to obtain financing is a condition of the contract. It outlines the details of the financing, including the loan amount, interest rate, and relevant deadlines for obtaining approval. It is important for buyers and sellers in Alabama to consult with their real estate brokers and legal professionals to determine the specific addendum that suits their needs and ensures a smooth and secure real estate transaction.
