Addendum to Sales Agreement

When it comes to buying or selling a property, there are several documents involved, and one of them is the sales agreement. This is a legally binding document that outlines the terms and conditions of the sale. However, sometimes situations arise that require extra terms to be included in the agreement, and that`s where an addendum to the sales agreement comes in.

What is an addendum to the sales agreement?

An addendum to the sales agreement is a separate document that is added to the original sales agreement. It is used to modify or add additional terms that were not included in the original agreement. It can be used to clarify any misunderstandings, address new issues that have arisen, or simply include new terms that were not present in the original agreement.

When is an addendum needed?

An addendum is needed when there are changes or additions to the original sales agreement. For example, if a seller agrees to make extra repairs, if the buyer wants to include additional contingencies, or if there is a change in the closing date, an addendum is needed. It is important to note that an addendum should only be used for substantive changes to the agreement, not minor changes or clerical errors.

What should be included in an addendum?

An addendum should clearly state the additional terms that are being added to the original sales agreement. It should be written in a way that is clear and easy to understand. It should also be signed and dated by both parties involved to ensure that it is legally binding. An addendum can be used to add any kind of additional terms, as long as they are legal and valid.

In conclusion, an addendum to the sales agreement is an important document that can help to clarify any misunderstandings or include any additional terms that were not included in the original agreement. It is essential to ensure that all parties involved in the sale agree to the terms of the addendum and have signed it before finalizing the sale. By being aware of when and how to use an addendum to the sales agreement, you can ensure that your property sale is smooth and successful.