Addendum language

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This is a list of addendum language that I use when needed.

1. ACCESS TO PUBLIC ROAD:
The Seller warrants that the subject property has the right of ingress and egress to and from_________________________ road without limitation by way of the existing driveway located at:____________________________________________
2. AGENT AS PRINCIPAL OR RELATIVE OF PRINCIPAL:
A. All parties acknowledge that___________________is a duly licensed Real Estate Agent under the law of
__________________ and is acting as the____________________________________.
B. All parties acknowledge that_____________________________is a duly licensed Real Estate Agent under the law of ____________________, and is the____________________of the____________________________and is acting as the agent of the ________________________________________.
(Buyer or Seller)

C. All parties acknowledge that the Buyer/Agent intends to sell the Property at a future date for a profit.

3.AMENITY PACKAGE RELEASE:
In the event that the Property is served by a recreational amenity package either now existing or to be constructed, Buyer acknowledges and represents that he has investigated the ownership and availability of such amenity package, and hereby releases Broker and Affiliated licensees from any responsibility or liability in regard thereto.
4. ASSESSMENTS OR LIENS:
The parties hereto are aware that there is a_______________assessment or lien against the within described Property in the amount of $________________________. Said assessment or lien shall be paid by/at the closing of this sale.
5. PROPERTY EXCHANGE:
This Agreement, and the Separate Agreement which is attached hereto, are intended to be Exchange Properties pursuant to Internal Revenue Code § 1031. The parties agree that they will perform all necessary acts and that they will execute all necessary documents to effectuate an Exchange of Properties under said Section. The parties anticipate that the closings upon the properties which are the subject of this Agreement and the attached Agreement will be simultaneous.

6.CONTINGENCIES:
A. Appraisal.
This Agreement is contingent upon_____________having Property appraised no later than_________________
and to pay for the appraisal. In the event the appraisal is not timely made, this contingency shall be deemed waived. The property must appraise for at least the amount set forth in the “Purchase Price” paragraph of the Agreement or the Buyer may, at his option, on or before_______________________, declare this Agreement null and void and all earnest money shall be refunded in full, in which event all parties agree to execute all necessary documentation. In the event Buyer fails to exercise this option, it shall be deemed waived.

B.Approval of Others.
This Agreement is contingent upon___________________viewing and approving the above described Property, and, if acceptable, notifying the Seller or Broker on or before________________________. Should the Property be unacceptable to_____________, this Agreement shall become null and void and all earnest money refunded in full, in which event all parties agree to execute all necessary documentation. In the event this contingency is not removed by the date set above, this contingency shall be deemed Waived and the Agreement shall remain in full force and effect.

C.Bankruptcy Pending.
The parties herein acknowledge that they have been informed of bankruptcy proceedings in the Federal District Court, and that this Agreement is contingent upon a final judgment and decree authorizing the sale of the Property. In the event that a final judgment sale authorization is not granted by_______________________, this Agreement shall become null and void with earnest money returned in full to Buyer, in which event all parties agree to execute all necessary documentation.

D.Court Permission to Sell.
Seller’s obligations under this Agreement are contingent upon approval or order of the appropriate court having jurisdiction over the sale of the Property on or before___________________________. Seller shall proceed diligently and in good faith, using all reasonable best efforts, at Seller’s expense, to obtain said approval. In the event said approval or order is not received by said date, the Agreement shall be null and void with earnest money returned in full to Buyer, in which event all parties agree to execute all necessary documentation.

E. Divorce.
The parties herein acknowledge that they have been informed that the Sellers are involved in a divorce proceeding and that this sale is contingent upon Sellers obtaining a final judgment and decree authorizing the sale of the Property. In the event that a final judgment sale authorization is not granted by___________________, this Agreement shall become null and void with earnest money returned in full to Buyer, in which event all parties agree to execute all necessary documentation.
F. Not Contingent on Sale of Property.
Buyer warrants that this Agreement is not contingent upon the sale of current residence or any other property and further states that failure to sell any of said properties will not be grounds for refund of earnest money in the event of loan denial.

G. Trade-in of Buyer’s Property.
This Agreement is contingent upon the Buyer and Seller reaching a mutually satisfactory trade-in agreement on the Buyer’s current Property located at_____________________________________________________________
on or before_____________________________. In the event a mutually satisfactory agreement is not reached within the time stated above, this Agreement shall become null and void with earnest money returned in full to Buyer, in which event all parties agree to execute all necessary documentation.

H. Release of Liability (Contingencies).
1) Conventional Loan.
This sale is contingent upon Buyer assuming Seller’s existing loan and Seller’s existing indebtedness for repayment of the loan and lender’s agreement to release Seller from liability thereon on Seller’s Property as described herein. Buyer agrees to immediately apply and submit necessary information to lender. If Buyer has not received such approval and agreement from the lender within________days after the date of acceptance of this Agreement, or should Buyer fail to qualify, the seller shall have the option of waiving this stipulation or declaring the Agreement null and void and all earnest money shall be refunded in full, in which event all parties agree to execute all necessary documentation.

2) FHA Loan.

This Agreement is contingent upon the Buyer’s ability to assume (a) the Seller’s existing FHA loan and (b) the Seller’sliability to the Federal Housing Administration (FHA) for the repayment of the FHA loan. Buyer agrees to apply immediately to FHA and submit necessary information. If Buyer has not received such approval and agreement from FHA within______days from date this instrument becomes a binding agreement, or should Buyer fail to qualify to assume the seller’s liability, seller has the option to waive this contingency or to declare the Agreement null and void and earnest money shall be refunded in full, in which event all parties agree to execute all necessary documentation.

3) VA Loan.
This Agreement is contingent upon the Buyer’s ability to assume the Seller’s existing VA loan and to assume the Seller’s potential indemnity liability to the U.S. Government for the repayment of the loan and the VA’s agreement to release Seller from liability thereon. Buyer agrees to apply immediately to the VA and submit any necessary documents and information required by VA. If the Buyer has not received such approval and agreement from the VA within_______ business days from the date this Instrument becomes a binding Agreement, or should the Buyer fail to qualify to assume the Seller’s liability, Seller has the option to waive this contingency or to declare this Agreement null and void and earnest money shall be refunded in full, in which event all parties agree to execute all necessary documentation.

7 . EARNEST MONEY:
A. Additional Earnest Money Held by Broker/Holder.
Buyer agrees to pay Holder additional earnest money in the principal amount of $_____________________on or before _____________________, making a total earnest money deposit of $_____________________. In the event Buyer fails to pay additional earnest money by said date, then, at the option of Seller (this option to be exercised within seven days of said date), this Agreement may be declared null and void by written notification to Buyer and Broker.
B. Held until Specific Time.
All parties to this Agreement acknowledge that the earnest money will not be deposited until_________________.
8. RECEIPT ACKNOWLEDGMENT:
Receipt of this notice is hereby acknowledged this_________day of____________,______ at_____o’clock____.
By:_____________________________________________.
9. RENT PRORATION:
All prepaid rents on said Property shall be prorated at the closing of the sale. The Seller represents that the monthly rentals on said Property of $___________________will be current at the time of the closing, and that there will be no expenses chargeable to the Seller except the taxes on said Property. The Seller shall pay to the Buyer all security and damage deposits, if any, which have been paid to the seller by any of the tenants. Buyer shall enter into an agreement to hold the Seller harmless against such transfer of security or damage deposits. At the closing of the sale, the Seller shall execute an affidavit which will verify the number of leases and tenancies then outstanding on the Property, the prepaid rent as to each, and the amount of security deposits as to each.

10. SUPERSEDE PREVIOUS CONTRACT:
Upon signatures by all parties, this agreement supersedes and makes null and void previous agreement accepted
____________________________, by and between the parties hereto.
11. THIRD PARTY AGREEMENT:
Seller hereby reserves the right to assign this Agreement to________________________________ (3rd Party) for closing and payment of mission in accordance with the terms hereof.

12. ZONING:
A. Rezoning Contingency.
Buyer understands and agrees that Property is zoned_________________________________and that the improvements thereon may not meet zoning requirements. The Buyer’s obligation hereunder is conditioned upon the Property being rezoned to_____________________________by the appropriate______________________ (County/City) authorities by _____________________________. The_______________________(Buyer/Seller)
shall be responsible for pursuing such rezoning and paying all affiliated cost. In the event that said rezoning is not obtained by said date, then this Agreement shall become null and void and all earnest money shall be refunded to the Buyer. All rezoning applications shall be submitted to Seller for Seller’s approval prior to filing, which approval shall not be unreasonably withheld. All parties agree to cooperate, to sign the necessary documentation and to support the rezoning application.
B. Homes converted to multifamily use where zoning for multifamily use may be questioned.
This Agreement is contingent upon Seller providing a letter from the city or county zoning authority stating that the
Property is presently zoned for multifamily use. Seller shall have two (2) weeks from date of acceptance to present said letter to Buyer or Broker(s). Should the Seller not present the letter within the above-stated time period, Buyer must, within forty-eight (48) hours past the time period, declare this Agreement null and void or this contingency shall be removed as a condition of this Agreement. If Buyer elects to declare this Agreement null and void, said declaration shall be on a Termination and Release Agreement with all earnest money being promptly refunded to Buyer. All parties agree to sign promptly all documentation.

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Comments (1) Sep 18 2010

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