Anyone involved in Collingwood real estate deals knows that paperwork is paramount. Most real estate bidding, buying, and selling involves plenty of contracts and other binding documentation, and that it must always be handled correctly to ensure the sale proceeds properly. This can occasionally lead to confusion, particularly when a buyer or seller misunderstands why certain procedures can only be utilized at certain times.
One common mistake we see is people confusing amendments and addendums. While similar concepts, they are distinct, and they should not be mistaken for each other. Doing so could cause major problems for your Collingwood real estate deal!
Here are the basics.
– Addendums (or addenda)
Addendums (or addenda; both terms are used) are changes made to a purchase agreement before it’s signed by the buyer and seller. Addendums can be used to modify almost any part of the purchase agreement and are among the most common tools a REALTOR® may use to improve or alter a deal in progress.
One common use for addendums is to modify a standard contract to add or remove certain requirements. For example, standard forms generally do not stipulate the need to have a septic tank inspected since septic tanks are relatively uncommon. If the home being sold has a septic tank, an addendum would add the requirement that it be inspected prior to purchase.
On the other hand, amendments are utilized after a purchase agreement has been signed by both buyer and seller, but before the sale is fully finalized. Amendments generally come about in response to new issues that come up during the conditional period or closing stages of the deal, which one or both parties may not have known about when they signed.
For example: say that the purchase agreement has been signed, but after the land is surveyed, it is discovered that a neighbour has accidentally built a fence, so it encroaches a couple feet onto the land being sold. As a potential example, an amendment would then be added to the agreement (and signed by both parties) requiring the fence be relocated to its proper place before the sale is finalized.
Make Collingwood Real Estate Investments Easy with Keith Hull
For over 15 years, licensed REALTOR® Keith Hull has been a trusted partner when buying and selling land around the Southern Georgian Bay area. Contact us today to discuss your needs!