What does “additional addendums required” mean in real estate listings?
A friend and I are looking through real estate listings, and several of them say "additional addendums required." What does that phrase mean? We’re new to this whole house-hunting thing, so we have no idea, and search engines are no help.
2 Responses
gofrfkim
07 Feb 2010
mycornerofbrickh
07 Feb 2010
An addendum is an addition to the contract. There is the basic sales contract and then you can add other clauses, or addendums, to it.
We most frequently see that "additional addendums required" phrase in listings that are foreclosure or bank owned properties. The banks have their own set of stipulations that have to be part of the contract. You’ll fill out the standard purchase agreement and then there will be additional pages that the bank adds to it.
I have also seen this apply to homes being handled by relocation companies. If the seller moved because of their job many larger companies give their employees assistance with the sale of their home. These relocation companies may buy the employee’s home so they can purchase a new one.
The addendums are usually very minor things but be sure you read them over carefully.
Good luck!
An Addendum is an addition to a completed written document. Most commonly this is a proposed change or explanation (such as a list of goods to be included) in a contract, or some point that has been subject of negotiation after the contract was originally proposed by one party. Real property sales agreements often have addenda (plural of addendum) as the buyer and seller negotiate fine points (how payments will be made, what appliances will be included, date of transfer of title, the terms of financing by the seller and the like). Although often they are not, addenda should be signed separately and attached to the original agreement so that there will be no confusion as to what is included or intended. Unsigned addenda could be confused with rough drafts or unaccepted proposals or included fraudulently.