As a Transaction Coordinator, I review a lot of contracts before applying them to my systems. I've noticed lately buyers and sellers are negotiating more and agents are using a number of addendums to counter terms. Remember to be consistent wih numbering or lettering! I've had addendums with no numbers identifying them or use of the same number or letter. It becomes difficult to track the addendums not to mention understand which addendum supercedes or counters the previous! Welcome to my world!- Diana
Crystal Springs Real Estate - Kentwood, MI
The best way to remedy this is to re-write the Purchase agreement to reflect the all the addendums. This way there is no confusion when dealing with the pre-closing and closing.
Oct 19, 2007 12:40 PM
Whitelaw & Sons Real Estate Services - Morgan Hill, CA
Broker, CEO, Realtor , ePro
Wow.... thats nuts! I am amazed that such a thing would get past both agents. Sort of frightening actually.
Oct 19, 2007 01:41 PM
Tech and Social Media Consultant - Walnut Creek, CA
Howdy Neighbor!
I'd like to invite you to join the Newbie Group.
Additionally here's a couple of information packed posts you'll want to read.
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Welcome and Blog On!
Oct 19, 2007 04:26 PM
KEIRE Realty Group - Manassas, VA
Principal Broker/Owner
Hi Diana,
Welcome to Active Rain! The opportunities to learn and network are incredible here. Best of luck to ya!
-Keith
Oct 19, 2007 04:53 PM
Windermere Real Estate/Whatcom, Inc. - Bellingham, WA
Bellingham Commercial Real Estate
I am not too sure about re-writing the purchase and sale to reflect all the addendums. I prefer date stamping with a path of progress for the transaction. One of the risks of re-writing the purchase and sale is how that may affect the timeline for the contingencies that are within the contract.
If the addendums are mutually accepted at the time the purchase and sale is written or after it is written, referring to the specific property, with the specific purchase and sale date then they are part of the contract even if they are not noted on the addendum portion of the purchase and sale. They can be called pretty much anything. If the date isn't exact enough one should add the time of day it was executed. Having said that I have seen some pretty messed up purchase and sales that make you ask the Chicken or the Egg question.
Oct 19, 2007 06:07 PM
Canopy Mortgage - Leo Namiot - Saint Augustine, FL
More than just great rates
Hi Diana,
Welcome to active rain, this is a great online community, Enjoy!
Leo Namiot
Benchmark Mortgage
Connecticut & Florida Mortgage Specialists
Oct 20, 2007 01:34 AM
Escrowcoord.com - Martinez, CA
The Leading Expert in TC Services & Education
I agree. I'm nervous about rewritting offers to reflect all the changes. Don't you think it's better for the agent to dialog back and forth prior to writing the addendum? That way the terms are right the first time!
Oct 22, 2007 05:14 AM
Escrowcoord.com - Martinez, CA
The Leading Expert in TC Services & Education
Wow I just got off the phone with one of the attorneys for California Association of Realtors. She indicatd that Addenda should be used to add terms AFTER a contract has been accepted. During negotiations, counter offers should be used. If there is not enough room on the counter offer, then an Addendum can be used for additional negotiations. The exception is the CAR Purchase Agreement Addendum template. This can be used either during initial negotiations OR after contractual acceptance. If you ever have questions regarding the use of California contracts, the California Association of Realtors website and legal department will help! Welcome to my world! Diana
Oct 22, 2007 10:21 AM
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