If you are in the process of selling or purchasing property, you may come across a “Change in Terms Addendum to Agreement of Sale Form.” This form is used to document any changes to the original agreement of sale, which can occur for a variety of reasons. In this article, we will explore important information you need to know about this form.
What is an Addendum to Agreement of Sale Form?
An addendum is an optional document that is added to an existing contract. In the case of real estate, an addendum to the agreement of sale form is used to modify or add terms to the original sale agreement.
Why would you need a Change in Terms Addendum?
There are many reasons why you may need to change the terms of the original agreement. This could be due to a change in the price, timeline, or other terms of the sale. For example, if the buyer discovers issues with the property during the inspection process, they may request a change in the terms of the agreement to reflect necessary repairs or modifications.
What should be included in the Change in Terms Addendum?
The Change in Terms Addendum should clearly state the modifications being made to the original agreement. This includes any changes to the purchase price, financing terms, or closing date. Any new terms that are being added should also be included in the addendum.
What are the legal implications of a Change in Terms Addendum?
The Change in Terms Addendum is a legally binding document. Both the buyer and seller must agree to the changes in writing and sign the form in order for the changes to be valid. It is important to note that any changes made to the original agreement must be legal and in compliance with state and federal laws.
How does this affect the closing process?
Once the Change in Terms Addendum is signed by both parties, it becomes a part of the original agreement. This means that the closing process may be delayed to allow for the revised terms to be reflected in the sale documents. It is important to work closely with your real estate agent and attorney to ensure that all necessary documents and deadlines are met.
In conclusion, a Change in Terms Addendum to Agreement of Sale Form is a legally binding document that allows for modifications to the original sale agreement. If you find yourself in a situation where changes need to be made to the terms of the sale, it is essential to work with an experienced real estate agent and attorney to ensure that all changes are legal and in compliance with state and federal laws.