The Real Estate Personal Property Addendum serves as a crucial supplementary document in U.S. real estate transactions where personal property items are included in the sale. This document becomes necessary when buyers and sellers need to clearly document which movable items are part of the transaction, their condition, and their allocated value. The addendum helps prevent post-closing disputes, ensures proper tax allocation, and provides clear documentation for insurance purposes. It's particularly important in furnished property sales or when significant equipment or appliances are included in the transaction. The document must comply with both federal regulations and state-specific real estate laws.
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1. Parties: Identification of buyer and seller, including full legal names and addresses
2. Background: Context of the transaction and reference to main purchase agreement
3. Definitions: Key terms used in the addendum including 'Personal Property', 'Closing Date', and 'Purchase Price'
4. Property Description: Detailed list of personal property items included in the transaction
5. Purchase Price Allocation: Value assigned to personal property items and tax implications
6. Condition of Items: Current state of items and any warranties or representations
7. Transfer of Title: Terms and conditions of ownership transfer for personal property items
1. Financing Terms: Specific terms and conditions if personal property items are separately financed
2. Maintenance Requirements: Specific care instructions and maintenance obligations for specialized items
3. Insurance Requirements: Coverage requirements and obligations for valuable personal property items
1. Schedule A - Inventory List: Detailed inventory and description of all personal property items included
2. Schedule B - Valuation Schedule: Individual values of items for tax and insurance purposes
3. Schedule C - Photographs: Visual documentation of items' condition at time of agreement
4. Schedule D - Warranties: Copies of existing transferable warranties for applicable items
Relevant legal definitions
Agreement
Seller
Buyer
Personal Property
Closing Date
Property
Purchase Price
Effective Date
Fixtures
Purchase Agreement
Transfer of Title
Bill of Sale
Delivery Date
Inspection Period
Warranties
Excluded Items
Included Items
Material Defect
As-Is Condition
Fair Market Value
Maintenance Records
Operating Manuals
Existing Warranties
Working Condition
Schedule of Personal Property
Allocated Value
Party
Clauses
Property Description
Price and Payment
Transfer of Title
Warranties and Representations
Condition of Property
Inspection Rights
Delivery and Acceptance
Risk of Loss
Insurance
Maintenance and Repair
Excluded Items
Default and Remedies
Assignment
Survival
Integration
Governing Law
Notices
Severability
Amendment
Counterparts
Further Assurances
Time of Essence
Allocation of Value
Bill of Sale Provisions
Indemnification
Relevant Industries
Relevant Teams
Relevant Roles
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