What This Real Estate Purchase Agreement Addendum Covers

The real estate purchase agreement addendum is a crucial document that outlines specific amendments to an existing purchase agreement between buyers and sellers. This addendum includes essential clauses such as Parties to the Agreement, Recitals, Amendments to the Original Agreement, and Representations and Warranties, ensuring that all modifications are clearly stated and legally binding.

When to Use a Purchase Agreement Amendment

Real estate buyers and sellers should utilize a purchase agreement amendment when changes to the original contract are necessary. Common scenarios include adjusting the purchase price due to market fluctuations, extending the closing date, or adding new contingencies based on inspections or financing. This addendum serves to formalize these changes and protect both parties' interests.

What's Included in This Real Estate Addendum Template

• Parties to the Agreement: Clearly identifies the buyer and seller involved in the transaction.
• Recitals: Provides context and rationale for the amendments being made.
• Amendments to the Original Agreement: Details the specific changes to the original purchase agreement, including price adjustments and new terms.
• Representations and Warranties: Ensures that both parties affirm certain facts about the property and their ability to complete the sale.
• Governing Law: Specifies which state's laws will govern the agreement.
• Entire Agreement: Confirms that this addendum, along with the original agreement, constitutes the complete understanding between the parties.

Key Real Estate Agreement Changes

• Effective Date: Establishes when the amendments take effect, providing clarity for both parties.
• New Purchase Price: Reflects any changes in the financial terms of the agreement, which is critical for both buyers and sellers.
• New Closing Date: Allows for adjustments in timelines, accommodating any delays or changes in circumstances.
• Additional Terms: Any new conditions or stipulations that may impact the sale are included here, ensuring all parties are aware.

Disclaimer: This template is for informational purposes only and does not constitute legal advice.