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 Arizona Price Escalation Addendum to Agreement of Sale is a legal document that is commonly used in real estate transactions in the state of Arizona. This addendum allows for a potential increase in the purchase price of a property if certain conditions are met. The purpose of the Arizona Price Escalation Addendum is to provide buyers with a means to compete in a competitive real estate market. When there are multiple offers on a property, this addendum gives buyers the opportunity to increase their offer in order to secure the purchase. The addendum contains several sections that outline the specifics of the price escalation. These sections typically include: 1. Base Purchase Price: This is the initial purchase price stated in the original Agreement of Sale. 2. Escalation Amount: This section details the amount by which the buyer is willing to increase their offer if competing offers are received. 3. Maximum Cap: It is common for buyers to set a maximum cap on the amount they are willing to escalate their offer. This protects buyers from potentially bidding more than they are comfortable with. 4. Verification of Competing Offer: This section requires the buyer to provide sufficient evidence of a competing offer in order for the price escalation to be considered. 5. Appraisal Contingency: This provision allows the buyer to determine the fair market value of the property through an appraisal. If the appraised value is lower than the escalated purchase price, the buyer may have the option to adjust their offer accordingly. It's worth noting that there may be variations of the Arizona Price Escalation Addendum to Agreement of Sale, depending on the specific needs of the parties involved. For example, there could be variations that include additional clauses or conditions specific to certain property types or transaction types. Overall, the Arizona Price Escalation Addendum to Agreement of Sale is a valuable tool for buyers in a competitive real estate market. It allows them to increase their offer while still maintaining some control and protection.The Arizona Price Escalation Addendum to Agreement of Sale is a legal document that is commonly used in real estate transactions in the state of Arizona. This addendum allows for a potential increase in the purchase price of a property if certain conditions are met. The purpose of the Arizona Price Escalation Addendum is to provide buyers with a means to compete in a competitive real estate market. When there are multiple offers on a property, this addendum gives buyers the opportunity to increase their offer in order to secure the purchase. The addendum contains several sections that outline the specifics of the price escalation. These sections typically include: 1. Base Purchase Price: This is the initial purchase price stated in the original Agreement of Sale. 2. Escalation Amount: This section details the amount by which the buyer is willing to increase their offer if competing offers are received. 3. Maximum Cap: It is common for buyers to set a maximum cap on the amount they are willing to escalate their offer. This protects buyers from potentially bidding more than they are comfortable with. 4. Verification of Competing Offer: This section requires the buyer to provide sufficient evidence of a competing offer in order for the price escalation to be considered. 5. Appraisal Contingency: This provision allows the buyer to determine the fair market value of the property through an appraisal. If the appraised value is lower than the escalated purchase price, the buyer may have the option to adjust their offer accordingly. It's worth noting that there may be variations of the Arizona Price Escalation Addendum to Agreement of Sale, depending on the specific needs of the parties involved. For example, there could be variations that include additional clauses or conditions specific to certain property types or transaction types. Overall, the Arizona Price Escalation Addendum to Agreement of Sale is a valuable tool for buyers in a competitive real estate market. It allows them to increase their offer while still maintaining some control and protection.
