There’s this funny little section within our contract that has boxes to check next to all the possible addenda we can use and attach to the purchase contract. We’ve come up with more addenda since the contract was last updated, so there’s a spot to check for other and a space to fill in the additional addenda.
We’ll go over the addenda later in more detail, but here’s a quick overview.
- Assumption and Carryback – used when the seller is going to carry the loan or if the buyer will assume the seller’s loan. We don’t use this very often in today’s market.
- Buyer Contingency – used for when a buyer must sell their current home before closing on the one they’re making an offer on.
- Domestic Water Well – used when the water source of the property is a well.
- HUD forms – used when there are required forms for HUD.
- HOA – used when the home is located within a Homeowner’s Association.
- Lead-Based Paint Disclosure – used when the home was built prior to 1978.
- Additional Clause – used for a couple different additional clauses, such as the buyer will provide proof of funds within 5 days of contract acceptance when purchasing with cash.
- On-site Wastewater Treatment Facility – used when the property has a septic.
- Other – could be the Short Sale or As Is addenda
We’ll delve into these addenda more deeply, but this gives you an idea of how many additional addenda could be added to the purchase contract. This can easily create a 20+ page contract!