Form RF 621 Addendum to Purchase and Sale Agreement

What Is an Addendum To Purchase And Sale Agreement

An addendum to a Purchase and Sale Agreement is a crucial document in the real estate world. It amends or supplements an existing Agreement, allowing both parties—buyer and seller—to make changes or add details without needing to rewrite the entire agreement. This flexibility makes the supplement an indispensable tool for adapting agreements to new information, terms, or conditions that arise after the initial contract is signed. Typically, the document covers alterations in price, closing dates, property conditions, and other critical transaction elements.

When to Use Addendum To Purchase And Sale Agreement

Several situations necessitate the insertion of a supplement into the Purchase and Sale Agreement:

• If either party needs more time to satisfy closing conditions, a supplement can formally modify the closing date.
• Adjustments to the purchase price due to appraisals or inspections are common reasons for a supplement. For example, the buyer may want to add a financing contingency or remove an inspection contingency based on further evaluations.
• Any amendments to the legal description of the property or clarifications about what is included in the sale should be documented.
• A supplement can record these revelations if new information about the property that affects its value or appeal becomes available.

How To Fill Out Addendum To Purchase And Sale Agreement

Filling out an Addendum to Purchase and Sale Agreement involves several straightforward steps:

Identify the Original Agreement: 

Begin by referencing the date and parties of the original Purchase and Sale Agreement to ensure clarity.

Specify Changes or Additions: 

Clearly articulate the modifications or additions being made. Avoid vagueness by being as detailed as possible.

Reference Affected Sections: 

If the appendix changes specific parts of the original agreement, those sections should be accurately mentioned.

Add New Terms if Required: 

Sometimes, the addition might introduce entirely new terms to the contract. These should be laid out comprehensively.

Signatures: 

To validate the document, the buyer and seller must sign the addendum, ideally in the presence of witnesses or a notary.