The Additional Deposit Real Estate Contract becomes necessary when parties to a real estate transaction agree to modify the original deposit terms, often due to extended closing periods, seller concerns about buyer commitment, or complex transaction structures. This contract type is commonly used in the United States real estate market when circumstances require additional financial assurance beyond the initial earnest money deposit. It provides specific details about the additional deposit amount, payment schedule, escrow arrangements, and conditions for release or forfeiture, while ensuring compliance with state and federal real estate laws.
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1. Parties: Identification of buyer, seller, and any other parties involved in the transaction
2. Background: Context of the additional deposit arrangement and reference to original purchase agreement
3. Definitions: Key terms used throughout the contract including 'Additional Deposit', 'Closing Date', 'Property'
4. Additional Deposit Amount: Specific amount of additional deposit and payment terms
5. Payment Terms: Timeline and method for additional deposit payment
6. Escrow Provisions: Details of how the additional deposit will be held and managed
7. Integration with Original Contract: How this additional deposit agreement relates to the original purchase contract
1. Interest Provisions: Terms regarding any interest earned on the additional deposit when deposit will be held for extended period
2. Release Conditions: Specific conditions for release of additional deposit when there are special circumstances for release
3. Default Provisions: Consequences of default specific to additional deposit when different from original contract terms
4. Tax Implications: Any tax considerations related to additional deposit when tax implications differ from standard deposit
1. Schedule A - Payment Schedule: Detailed timeline of when additional deposit payments are due
2. Schedule B - Escrow Instructions: Specific instructions for escrow agent regarding additional deposit
3. Appendix 1 - Original Purchase Agreement: Copy of the original purchase agreement being modified
4. Appendix 2 - Proof of Funds: Documentation showing ability to make additional deposit
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