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 Kansas Price Escalation Addendum to Agreement of Sale is a legal document that is commonly used in real estate transactions in the state of Kansas. This addendum allows for the adjustment of the purchase price of a property based on certain specified circumstances or market conditions. The purpose of this addendum is to protect both the buyer and the seller from unexpected changes in the market value of the property after the initial agreement has been signed. There are different types of Kansas Price Escalation Addendum to Agreement of Sale, each serving a specific purpose. The most common types include: 1. Market-Based Price Escalation: This type of addendum allows for the adjustment of the purchase price based on changes in the market value of similar properties in the area. It typically includes a provision that states that if the appraised value of the property is higher than the original purchase price, the buyer agrees to pay the difference. 2. Cost-of-Construction Price Escalation: This addendum is used when the purchase price is subject to change based on the cost of construction materials and labor. If there is a significant increase in construction-related expenses, the buyer may be required to pay the additional costs or negotiate a revised purchase price. 3. Time-Based Price Escalation: This type of addendum allows for the adjustment of the purchase price based on the length of time it takes to close the transaction. If there are delays in the closing process that result in increased carrying costs or other expenses for the seller, they may request a higher purchase price to compensate for these additional costs. 4. Contingency-Based Price Escalation: This addendum is utilized when the purchase price is contingent upon the occurrence or non-occurrence of specific events. For example, if the buyer is relying on securing financing to complete the purchase, the addendum may state that if the buyer fails to obtain the necessary financing, the purchase price will be adjusted or the agreement may be terminated. It is essential for buyers and sellers alike to carefully review and understand the specific terms and conditions outlined in the Kansas Price Escalation Addendum to Agreement of Sale. Seeking legal advice from an experienced real estate attorney is highly recommended ensuring compliance with state laws and to protect one's interests before signing any contractual agreements.
