The Addendum to Agreement of Sale is a crucial document in U.S. real estate transactions when circumstances require modifications to an original sales agreement. It's commonly used when parties need to adjust terms such as purchase price, closing date, inspection periods, or include additional conditions not covered in the original agreement. This document type is particularly important because it provides a clear paper trail of changes while preserving the original contract's integrity. The addendum must comply with state-specific real estate laws and the Statute of Frauds, requiring written documentation of any changes to real estate contracts. It's essential for risk management and legal clarity, ensuring all parties understand and agree to the modifications being made to the original sales agreement.
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1. Identification of Original Agreement: Reference to the original Agreement of Sale being modified
2. Parties: Identification of all parties involved in the transaction
3. Background: Context and reason for the addendum
4. Definitions: Key terms used in the addendum
5. Modifications: Specific changes to the original agreement
6. Effect on Original Agreement: Statement that all other terms remain in full force and effect
7. Signatures: Execution block for all parties
1. Additional Terms: New terms not covered in original agreement - use when introducing completely new provisions
2. Time Extensions: Modified deadlines or timeframes - use when changing any dates from original agreement
3. Price Adjustments: Changes to purchase price or payment terms - use when modifying financial terms
4. Contingencies: New or modified conditions - use when adding or changing contingencies
1. Schedule A - Modified Terms: Detailed list of specific changes to original agreement
2. Schedule B - Updated Property Description: If changes to property description are needed
3. Schedule C - Revised Payment Terms: If payment terms are being modified
4. Exhibit 1 - Supporting Documentation: Any relevant supporting documents for modifications
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