Repair Addendum – Lease Options

What is a Repair Addendum

When the house is to be sold and the seller and buyer accept the terms and conditions, they enter into something which is called as the Sale Agreement. However, there is normally a Repair Addendum that is added to the sale agreement. This addendum is presented to the seller but does not mean that it is a counter offer of the buyer or that the buyer has refused to honor the existing sale agreements. The seller does not have a deadline for the acceptance of this and both parties could also consider incase any written extensions are needed for the inspection periods.

The seller also can ask for a copy of the inspections based on which the items in the Repair Addendum are based. If the repairs which are to be done as well as the corrective action goes beyond the date of scheduled closing, then the parties should agree upon a new date for scheduled closing and mention it in the addendum as well.

The repairs or the corrective action should be undertaken as per the laws and the codes as well as the ordinances of the state and it should be paid by the seller before the date of the closing.  The date of completion is to be mentioned and the seller has to give a selling licensee written notice that the corrective action has been completed and the buyer as well as the buyers inspector needs to complete and reinspect the property and confirm that the repairs as well as corrective action is completed within a stipulated period else it is deemed as completed.

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Sample Template Preview

Repair Addendum to Purchase Option

Addendum to purchase option agreement dated ______________20____________.

Optioner___________________________________

Optionee __________________________________

Property Address _________________________________________________________

1. REPAIRS. In consideration of Optionor granting Optionee the option to purchase real property as described above under a certain Option Agreement dated __________ 20_____, the terms of which are incorporated herein by reference, the Optionee agrees to perform the following repairs or work on the property as described in the annexed exhibit “A.”

2. TIMELINE FOR COMPLETION.  All work shall be completed in a good and workmanlike manner on or before __________, 20________, or as described in the annexed exhibit.

3. COMPLIANCE WITH LAWS.  Optionee agrees to obtain all necessary permits required by law for said work and comply with all local, city, state and federal laws, codes and ordinances.  Upon completion of work, Optionee shall execute waivers of mechanics’ and materialmans’ liens.

4. OPTIONEE INDEPENDENT CONTRACTOR.  Optionor shall have the right to periodically inspect and approve (or disapprove) of the quality of work performed, but shall have no right to supervise the work of Optionee or the times or days which Optionee performs work. Any work performed on the premises whether by Optionee or other parties shall be as an independent contractor or agent of the Optionee and not an employee or agent of Optionor.  Optionee further warrants that he will be accountable for any mishaps and/or accidents resulting from such work, and will defend, indemnify and hold the Optionor and his agents free from claims of any other person or entity.  All improvements to the property shall remain attached and a part of the property if Optionee does not exercise his option to purchase.

5. ACCESS TO PREMISES.  Optionee shall be entitled, at reasonable hours, to have access to the premises to perform the work, but this shall constitute a limited license and not an occupancy agreement.  In the event that Optionee attempts to occupy or move into the premises, the Option shall be forfeited and Optionee shall be considered an illegal occupant and evicted accordingly.

6. CONSIDERATION.  The performance of work as described herein shall constitute non-refundable option consideration in the amount $_____________.  Optionee shall not be paid in cash or other manner, whether or not the Option is exercised.  Optionee agrees and  understands that this consideration may be considered income under federal, state or city income tax and that Optionor may report this information to the Internal Revenue Service and State Department of Revenue as income paid.

Additional Provisions:

Dated:

____________________________________
Optionee

____________________________________
Optionee

____________________________________
Optionor