When it comes to purchasing a property or a business, a purchase agreement is an essential document that outlines the terms and conditions of the sale. However, it is common for an addendum to be attached to the purchase agreement, to address additional details or contingencies that may arise before or after the sale.
Here are some common addenda that may be attached to a purchase agreement:
1. Inspection addendum: This addendum allows the buyer to have the property or business inspected before the sale is finalized. It may include specific dates for the inspections and any contingencies that arise from the inspection results, such as repairs or credits.
2. Financing addendum: This addendum outlines the terms of the financing for the purchase, including the loan amount, interest rate, and payment schedule. It may also include any contingencies related to financing, such as the buyer`s ability to obtain a loan or the seller`s obligation to provide financing.
3. Contingency addendum: This addendum allows for the sale to be contingent on certain conditions, such as the buyer`s ability to sell their current property or the seller`s ability to clear any liens on the property. It may also specify the time frame for the contingency to be met.
4. Disclosure addendum: This addendum requires the seller to disclose any known defects or issues with the property or business, such as environmental hazards or zoning restrictions. It may also require the buyer to acknowledge that they have received and reviewed the disclosure.
5. Closing addendum: This addendum specifies the date, time, and location of the closing, as well as any additional requirements or documents needed for the sale to be finalized.
It is important for both buyers and sellers to carefully review and understand any addenda attached to a purchase agreement, as they can significantly impact the terms and conditions of the sale. Consulting with a real estate attorney or other professional can also help ensure that all aspects of the transaction are properly addressed and legally binding.