A real estate purchase agreement amendment is a legal document that allows you to change the terms of an existing contract. It modifies the purchase agreement to address new circumstances or requirements, such as correcting errors or adjusting terms like closing dates, purchase prices, or contingencies, without having to create a brand-new contract.
Any modifications to the existing contract must be in writing to be enforceable. You should attach the amendment to the original purchase agreement, and all parties to the transaction must sign it to be considered legally binding.
Supplemental Forms
Do you need to expand the terms of your real estate purchase agreement before execution? Use our real estate purchase agreement addendum.
When to Use
Many situations may call for a real estate purchase agreement amendment. Here are some examples:
- Contingencies: Title issues come up, errors in the original real estate purchase agreement need correction, or the closing date has to be changed.
- Property Conditions and Repairs: A home inspection reveals potential issues with the property that must be remedied.
- Property Included Items: Changes in property boundaries or acreage or modifications to a person’s estate plan affect the purchase.
- Closing Costs and Financial Terms: The property cost changes as a result of an appraisal or the down payment or lender information was initially incorrect.
These situations and countless others make an amendment pivotal to help move the real estate purchase forward.
Who Needs an Amendment to a Purchase Agreement?
- Buyers: Individuals or businesses who have entered into a real estate agreement and need to modify original terms.
- Sellers: Property owners who wish to adjust the terms of an agreement or real estate developers updating contracts with contractors or buyers.
- Real estate agents and attorneys: Professionals who assist any party involved in a real estate transaction to make necessary changes or updates to the original agreement.
How to Write
Follow these simple steps to amend a real estate purchase agreement:
Step 1: Identify Parties and Property
The amendment must identify the relevant parties to sign the agreement and the purchased property. It should include the following information:
- The full name of all parties (typically the buyer and seller).
- Addresses and other essential contact details.
- Any official titles for entity representatives.
- Address of the property and any other identifying details.
Step 2: Reference the Original Agreement
The amendment should reference and state the date of the original purchase agreement. Many agreements are effective on the date they are signed; others are retroactive and begin on a date earlier than the date the amendment is signed, and the rest become effective later after the amendment is signed.
Step 3: Detail the Amendment Terms
A section should be dedicated to the terms of the amendment, detailing the changes you want to make to the original agreement. Be precise about what terms are being altered, added, or removed, and clearly state the new terms or conditions. If the amendment involves title details, an affidavit of title might be necessary to update or confirm the title status.
Too many people use informal language or incomplete sentences that may be unenforceable. Detailing these terms clearly helps all parties understand exactly what is changing and how it affects the overall agreement.
Step 4: Preserve Original Agreement Language
The amendment should include a provision that preserves any unaltered language in the original contract. For example, it could say, “Except as outlined in this amendment, all other terms and conditions of the purchase agreement remain unchanged and shall continue in full force and effect.”
This clarifies to the reader — or a court — that the rest of the original contract is unchanged and still enforceable between the parties.
Step 5: Collect Necessary Signatures
Ensure that all parties involved sign the amendment to make it legally binding. Each party should provide their full legal name and signature and, if applicable, include their title or position. Collecting signatures from all parties is essential for the amendment to be enforceable and to confirm that all parties agree to the changes made.
Step 6: Define Delivery and Acknowledgment
Specify how the amendment will be delivered to all parties involved and set a deadline for acceptance. Common methods include sending the document via certified mail or email with a read receipt. Clearly defining the delivery method and acknowledgment ensures that all parties receive and confirm the amendment, which helps prevent disputes over whether the document was properly communicated.
Step 7: Consider Legal Review
If the amendment involves significant changes or complex legal issues, consider having it reviewed by a legal professional. A lawyer can ensure that the amendment complies with relevant laws and accurately reflects the intentions of the parties. The legal review helps mitigate risks, providing additional security for all parties involved.
Real Estate Purchase Agreement Amendment Sample
You can download a real estate purchase agreement amendment template below in PDF and Word formats:
Frequently Asked Questions
What is the difference between an addendum and an amendment in real estate purchase agreements?
An addendum and an amendment serve different purposes. An addendum adds to the original agreement but does not change the contract’s terms. Amendments change specified terms within the original agreement.
Can you amend an expired agreement?
No, you cannot amend an expired agreement. Once the legal contract has expired, it is no longer in effect. However, you can create a new document with the terms you want to include.
To save time, some people will sign a new version of the original agreement and attach an amendment to avoid redrafting the original document.
Can you amend an agreement by email?
Yes, you can amend an agreement by email if both parties agree and confirm the changes. Include all details of the amendment in the email and ensure both parties acknowledge it. For legal certainty, consider also providing a signed hard copy.
Some agreements or jurisdictions may require physical signatures or have specific requirements for amendments to be legally binding, so it’s always a good idea to consult with a legal professional to ensure compliance with applicable laws and contract terms.
