Addendum to the purchase agreement form and best practices for creating it
The addendum to the purchase agreement form is a legal document that comes as a written addition to the original real estate buying-selling contract. It’s often confused with an amendment form. However, there’re substantial distinctions between these two terms:
- Addendum, unlike an amendment, only adds terms to the contract a buyer and a seller agreed upon but doesn’t modify it.
- Addendums must be incorporated into the contract from the outset, while the real estate amendment form can come along as parties negotiate the deal.
- As a rule, if multiple amendments are introduced, the contract gets rewritten, which isn’t the case for addendums. You can add as many addendums as you wish, which won’t affect the contract's content.
Real estate addendum examples
The primary purpose of the addendum to the purchase agreement form is to ensure that both seller and buyer are on the same page regarding matters not initially spelled out in the contract. These are the most common situations when you might need to draft this document:
- Contingency addendum: the party, who adds it, can withdraw from the agreement without facing legal or financial consequences. For instance, the buyer can protect themselves by drafting an Addendum to the Contract for the Price, Sale, and Purchase of Residential Real Estate upon conducting a home appraisal (examining the property's real value) or home inspection (checking the condition of the property). Also, it’s commonly used when the buyer wants to clarify that they would be ready to buy a new property after selling their one.
- HOA Addendum: The HOA (Home Owners Association) homes have certain rules to follow and fees to pay. They need to be outlined in the addendum.
- Disclosure addendum: This document sheds light on what has been done to the property in question while the seller possessed it. This way, the buyer can request information on whether this property was maintained, repaired, and compliant with the real estate laws.
General tips on how to write an addendum to a real estate contract
Follow these recommendations when creating an addendum to the purchase agreement form.- Whether you’re putting together a Sales Price Change Addendum or any other type of it, make sure to indicate which contract you’re creating this document for. Specify its title and indicate dates.
- State clearly and precisely what parts of the contract you would like to introduce an addendum for. Describe them in detail.
- If you add more than one addendum clause, structure them with an ordered list.
- Add blocks for names, signatures, and other fields (if applicable) so that all parties involved can easily complete it and sign it on the dotted line.
- Use US Legal Forms as a reference or a template to quickly draft your pricing addendum or any other addendum relevant to your case.
