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 Florida Price Escalation Addendum to Agreement of Sale is a legal document that serves as an addendum to the original agreement of sale for a property in Florida. This addendum outlines specific provisions and conditions regarding price escalation in case the market value of the property increases during the time between the original agreement and the closing. This addendum is primarily designed to protect the interests of the buyer, ensuring they can secure the property at a fair price despite any unexpected market changes. It allows the buyer to escalate their offer to a higher price if competing offers are received during a specified time frame. There are different types of Florida Price Escalation Addendum to Agreement of Sale based on their application and terms: 1. Fixed Percentage Addendum: This type allows the buyer to increase their offer by a fixed percentage over the highest competing offer, e.g., 2% or 3% above the competing bid. 2. Automatic Increment Addendum: With this type, the buyer agrees to automatically increase their offer in predefined increments, typically in the form of cash or a percentage of the difference between their original offer and the competing bid. 3. Price Cap Addendum: This addendum sets a maximum limit or cap on the escalated price. If the competing offer exceeds the cap, the buyer is not obligated to further increase their bid and may choose to withdraw from the agreement. 4. Time Limit Addendum: This type establishes a specific time period, usually a few days, during which competing offers must be received. The buyer has the option to escalate their bid within this time frame. The Florida Price Escalation Addendum to Agreement of Sale is a crucial tool in competitive real estate markets, enabling buyers to remain competitive and secure their desired property without overpaying significantly. It is recommended to consult a real estate attorney or agent familiar with Florida's specific regulations to ensure the addendum meets all legal requirements and protects the buyer's interests effectively.
