An addendum is a thing to be added; an addition. For example, it may be used to add supplemental terms or conditions to a contract or make corrections or supply omissions to a document. An addendum is often used to supply additional terms to standardized contracts, such as leases. Addendum is singular; the plural form is addenda.
The Maricopa Arizona Price Escalation Addendum to Agreement of Sale is a legal document used in real estate transactions in Maricopa, Arizona. It is designed to protect both buyers and sellers in a volatile real estate market where prices are prone to rise significantly. This addendum addresses the possibility of price escalation and provides guidelines on how the parties involved in the transaction should proceed if the property's price increases before closing. It helps ensure that buyers are still able to purchase the property at a fair price, even if market conditions change. There are various types of Maricopa Arizona Price Escalation Addendum to Agreement of Sale, including: 1. Fixed Percentage Escalation: This addendum stipulates that the purchase price will increase by a set percentage if the appraised value of the property exceeds the agreed-upon purchase price. 2. Cap and Gap Provision: This type of addendum includes a cap, which establishes the maximum amount the purchase price can increase. It also introduces a gap, which stands for the difference between the purchase price and the appraised value. The buyer agrees to cover this gap up to a specified amount. 3. Multiple Offer Escalation: This addendum is used when the property receives multiple offers. It allows buyers to escalate their offer by a predetermined increment over competing offers. The seller can accept the highest escalated offer or negotiate with the buyers involved. 4. Price Redefinition: In some cases, the Maricopa Arizona Price Escalation Addendum to Agreement of Sale can also address price reductions. If the appraised value of the property is lower than the initial purchase price, this addendum can provide guidance on renegotiating the price to reflect the appraised value. It is important for both buyers and sellers to carefully review and understand the Maricopa Arizona Price Escalation Addendum to Agreement of Sale before signing. Consulting with a real estate professional or attorney can help ensure that all terms and conditions are fair and accurately represent the intentions and expectations of the parties involved.The Maricopa Arizona Price Escalation Addendum to Agreement of Sale is a legal document used in real estate transactions in Maricopa, Arizona. It is designed to protect both buyers and sellers in a volatile real estate market where prices are prone to rise significantly. This addendum addresses the possibility of price escalation and provides guidelines on how the parties involved in the transaction should proceed if the property's price increases before closing. It helps ensure that buyers are still able to purchase the property at a fair price, even if market conditions change. There are various types of Maricopa Arizona Price Escalation Addendum to Agreement of Sale, including: 1. Fixed Percentage Escalation: This addendum stipulates that the purchase price will increase by a set percentage if the appraised value of the property exceeds the agreed-upon purchase price. 2. Cap and Gap Provision: This type of addendum includes a cap, which establishes the maximum amount the purchase price can increase. It also introduces a gap, which stands for the difference between the purchase price and the appraised value. The buyer agrees to cover this gap up to a specified amount. 3. Multiple Offer Escalation: This addendum is used when the property receives multiple offers. It allows buyers to escalate their offer by a predetermined increment over competing offers. The seller can accept the highest escalated offer or negotiate with the buyers involved. 4. Price Redefinition: In some cases, the Maricopa Arizona Price Escalation Addendum to Agreement of Sale can also address price reductions. If the appraised value of the property is lower than the initial purchase price, this addendum can provide guidance on renegotiating the price to reflect the appraised value. It is important for both buyers and sellers to carefully review and understand the Maricopa Arizona Price Escalation Addendum to Agreement of Sale before signing. Consulting with a real estate professional or attorney can help ensure that all terms and conditions are fair and accurately represent the intentions and expectations of the parties involved.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.
