An addendum is an attachment to a contract that modifies the terms and conditions of an accepted offer. Addendum are used to efficiently update the terms or conditions of an accepted offer that the buyer will be required to sign as part of the Contract, and YES, you need to sign them.
In addition to the contract, the Asset Manager will often require a seller addendum to accompany the purchase contract. The seller addendum is a document that supplements the terms presented in the customary sales contract and adds additional disclosures and stipulations pertinent to the transfer of an REO asset.
The seller addendum is drafted in a friendly language and the majority of the terms are non-negotiable. This addendum is created to override any discrepancies in terms and furthermore, establishes the terms of the REO transaction. The seller addendum will disclose the sale of the property in “AS IS” condition and that seller provides no guarantees of any kind. It will also have any penalties and fees for extensions beyond a reasonable closing period.
1) Read the Bank’s Addendum completely. Many Agents have no idea what it says and are unaware of Extension Fees, Per Diem and other clauses.
2) Read the Bank’s Instructions and Listing Agreement - Understand Commission Splits, technology and Management fees.
3) If you are the Listing Agent, make sure you have Commission Split correct in the MLS.
4) “AS IS” usually means “AS IS.” .
The Addendum to the purchase contract is not optional.
It is the Listing Agent’s responsibility to collect all documents from Buyer’s Agent and upload them into DispoSolutions. The Bank will provide the Listing Agent a copy of the addendum which should be executed by the Buyer and returned within the specified amount of days.
For more information please contact the Listing Agent.