A Real Estate Addendum serves as a critical tool in U.S. property transactions when parties need to modify their original agreement. This document is commonly used when circumstances change after the initial contract signing, such as inspection findings, pricing adjustments, or closing date modifications. The addendum must comply with both federal and state real estate laws and becomes legally binding once all parties sign. It's essential to ensure the addendum is clear, specific, and properly references the original agreement to maintain legal validity.
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1. Reference to Original Agreement: Identifies the original contract being modified, including date and parties
2. Parties: Names and details of all parties involved in the transaction
3. Property Description: Legal description and address of the subject property
4. Modification Details: Specific changes or additions to the original agreement
5. Effect on Original Agreement: Statement confirming all other terms of original agreement remain in effect
6. Signatures: Execution block for all parties and dates
1. Contingencies: Additional conditions that must be met before the addendum takes effect
2. Timeline Modifications: Changes to original contract deadlines or closing dates
3. Price Adjustments: Modifications to the original purchase price due to inspections or other factors
1. Schedule A - Property Details: Detailed property description or modifications to original description
2. Schedule B - Price Adjustments: Itemized list of price changes and justifications
3. Schedule C - Timeline Changes: Modified dates and deadlines for the transaction
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