ADDENDUM TO EARNEST MONEY CONTRACT

Buy the property that is under lease from the potential seller after preparing an earnest money contract

Would you like to prepare an addendum to earnest money contract agreement? Then you either have to hire a professional and experienced attorney or download a professional earnest money contract form from online and prepare yourself. Generally, this agreement is prepared by the seller who would like to sell the property that is under lease to the buyer. This agreement has to be thoroughly read by the buyer and seller after which both the parties have to sign for agreement acceptance along with date. In this addendum to earnest money contract, the seller has to include when the copies of the current leases property have to be delivered to the potential buyer. So, after receiving these papers, the buyer will have a couple of days’ time to go through the lease terms and approve it. In case, if the buyer does not agree to the terms mentioned in the lease, then he/she does not sign the contract.

Most importantly, the security deposits that are kept near the seller by the tenant would be transferred to the present buyer’s account. Moreover, the buyer will be liable to the security deposits of the tenant and ensure that the seller is no responsible for any of the security deposits. In addition, the seller has to intimate their tenants about the property being sold to another person and they have to tell their tenants about their security deposits being transferred to the current owner of the property and they can collect them after the termination of the lease period. Generally, these points have to be included in the contract paper clearly. Moreover, you need to prepare these papers without any legal jargons and without missing crucial points. This contract paper would stand as a concrete proof in case of any conflicts between the previous owner and current owner in the near future.

Contractaddendum

Contractaddendum

Contractaddendum

 

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  ADDENDUM TO EARNEST MONEY CONTRACT

Addendum to Earnest Money Contract date_______________________ by and between ______________________________________________________________ as Seller(s) and ________________________________________________________ as Buyer(s) for the sale of property located at ___________________________________________________.

Notwithstanding anything to the contrary in the main part of the above mentioned Earnest Money Contract, the parties agree as follows:

1.    At closing Seller shall transfer title to the Property by general warranty deed into a revocable land trust for Seller’s benefit, naming __________________________ as trustee.  Seller will then assign the beneficial interest to Buyer relinquishing all further interest in the trust and the property.

2.    Buyer will be taking the property in trust subject to liens securing a promissory note payable to _____________________________________, but Buyer will assume no personal liability for the loan. Commencing on _________________________, 20____, Buyer shall pay all monthly obligations on the underlying loans and for property taxes, assessments, homeowner’s association dues (if applicable) and any other expenses related to the property.

3.    Seller understands that the Loan will remain in Seller’s name and may continue to appear on Seller’s credit reports.  Seller and Buyer are both aware that the deed of trust securing payment of the Loan does or may contain a provision prohibiting the transfer of any interest in the Property without paying off the underlying loan and/or obtaining the lender’s prior written consent (a “due on sale” clause), and that this transaction may violate the terms of the deed of trust.  Seller understands that the Lender may discover that title to the Property has been transferred and may demand payment in full of the outstanding balance of the Loan, in which case Seller agrees not to hold Buyer responsible for the acceleration of the loan.

4.    Seller shall assign, transfer and deliver to Buyer all of Seller’s interest in any funds held in an existing escrow account with the lender without cost to Buyer.  Further, Seller shall transfer and assign to Buyer all of Seller’s right, title and interest to any unearned insurance premium that may exist at the time of closing as well as Seller’s interest in any insurance claims, past or future, in relation to the property being sold pursuant to this earnest money contract.

5.    Buyer reserves the right to acquire title to this property as part of an I.R.S. Section 1031 tax deferred exchange or a similar arrangement.  Buyer agrees to pay costs of said exchange and Seller agrees to execute any necessary documents at no charge to Seller.

6.    Buyer may enter the property to make repairs and/or advertise the property for sale or lease with a yard sign prior to closing.

____________________________________    ____________________________________
Seller                            Date

____________________________________    ____________________________________
Seller                            Date

____________________________________    ____________________________________
Buyer                            Date

____________________________________    ____________________________________
Buyer                            Date