Some state real estate commissions require the use of a buyout addendum when a real estate broker enters into a contract to purchase a property: i) concurrent with the listing of such property; ii) as an inducement or to facilitate the property owner's purchase of another property; or iii) continues to market that property on behalf of the owner under an existing listing contract.
It is generally recommended that a real estate broker use such an addendum when he/she continues to market the property and is only agreeing to buy it to make the deal. If a licensee actually wants to own the property, using the addendum does not solve the conflict of interest.
This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
West Virginia Real Estate Broker Buyout and Price Addendum to Contract to Buy and Sell Real Estate is a legal document that outlines the terms and conditions for the dissolution of a real estate brokerage agreement and the subsequent purchase of the property by the broker. This addendum is designed to protect the rights and interests of both the buyer and seller when a real estate broker wishes to purchase a property listed under their brokerage. It provides a clear and detailed framework for the buyout process, ensuring a smooth and transparent transaction. The West Virginia Real Estate Broker Buyout and Price Addendum to Contract to Buy and Sell Real Estate may include various types, covering different scenarios or contingencies. Some of these types include: 1. Standard Buyout Addendum: This type of addendum outlines the basic terms and conditions for the broker's purchase of the property. It includes details such as the purchase price, financing terms, inspection contingencies, and closing deadlines. 2. Price Adjustment Addendum: In this case, the addendum allows for adjustments to the purchase price based on specific factors such as property inspections, repairs, or appraisals. It ensures that both parties agree on a fair and equitable price for the transaction. 3. Contingency Addendum: This addendum is used when there are specific conditions that must be met before the purchase can be completed. For example, if the buyer is required to sell their existing property first or secure financing approval, this addendum will outline those conditions and the related deadlines. 4. Time Extension Addendum: Occasionally, it may be necessary to extend the closing deadlines due to unforeseen circumstances or complications. This addendum allows both parties to agree on revised timelines for completing the transaction. When utilizing a West Virginia Real Estate Broker Buyout and Price Addendum to Contract to Buy and Sell Real Estate, it is essential to consult with a qualified real estate attorney or agent. They can provide guidance and ensure that all legal requirements are met, protecting both the buyer and seller during the process.
