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 New Hampshire Price Escalation Addendum to Agreement of Sale is a legal document that may be included in a real estate transaction in the state of New Hampshire. This addendum serves to address potential price escalations that may occur during the purchase process. The purpose of the New Hampshire Price Escalation Addendum is to protect both the buyer and seller from unexpected increases in the purchase price due to various factors such as changes in market conditions or competing offers. By including this addendum in the agreement of sale, both parties can agree on a method to adjust the purchase price if certain conditions are met. There are different types of New Hampshire Price Escalation Addendums that may be utilized depending on the specifics of the real estate transaction. Some common types include: 1. Market Condition Escalation Addendum: This type of addendum allows for price adjustments based on changes in market conditions. It typically includes a specific formula or calculation method to determine the new purchase price, taking into account factors such as the average price of comparable properties or the percentage increase in the market value. 2. Competing Offer Escalation Addendum: In situations where multiple offers are received for a property, this addendum allows the buyer to increase their offer price above competing offers, up to a specific limit. It usually includes clear guidelines on how the escalation process will work, including the timeline for submitting the revised offer and the increments by which the price can be increased. 3. Time-Based Escalation Addendum: This addendum provides for price escalations based on the length of time the property has been on the market. It allows the buyer to increase their offer after a specific duration, encouraging a quicker sale for the seller. It's important to note that the specific terms and conditions of the New Hampshire Price Escalation Addendum may vary depending on the preferences of both the buyer and seller, as well as any legal requirements or guidelines set forth by the state of New Hampshire. Furthermore, it is advisable to consult with a qualified real estate attorney or professional when considering the inclusion of this addendum in an agreement of sale to ensure compliance with local laws and regulations.
