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 Oklahoma Price Escalation Addendum to Agreement of Sale is a legal document used in real estate transactions that helps protect both buyers and sellers from unexpected price increases in the housing market. This addendum is particularly useful in a high-demand housing market where prices are rapidly increasing. When a buyer and seller enter into a sales agreement, they may choose to include the Oklahoma Price Escalation Addendum to address potential price escalations. This addendum outlines the conditions under which the purchase price may increase and the process for determining the escalated price. There are different types of Oklahoma Price Escalation Addendums that can be used in various circumstances, such as: 1. Fixed Percentage Addendum: This type of addendum specifies a fixed percentage increase that the buyer agrees to pay if the appraisal value exceeds the original purchase price. For example, if the agreed-upon percentage is 5% and the appraisal value is $200,000 higher than the original purchase price, the buyer will be responsible for paying an additional $10,000. 2. Appraisal Addendum: This addendum uses the appraised value to determine the escalated price. If the appraised value exceeds the original purchase price, the buyer will pay the appraised value, subject to certain limitations outlined in the addendum. 3. Competitive Bidding Addendum: In a competitive market, this addendum allows buyers to include a provision stating that they will increase their offer by a certain amount above the highest competing offer, up to a predetermined limit. This helps buyers stay competitive without overpaying. The Oklahoma Price Escalation Addendum provides protection for both buyers and sellers, ensuring that the purchase price is reflective of the market conditions at the time of closing. It helps prevent buyers from being outbid by competitors and allows sellers to receive a fair price for their property. Before signing any real estate agreements, it's important for both parties to thoroughly review the terms of the Oklahoma Price Escalation Addendum and seek legal advice if necessary. By understanding the options available and the potential impact on the purchase price, buyers and sellers can make informed decisions and protect their interests in the transaction.
