If you are buying or selling a property in Washington state, it is important to have a clear and comprehensive purchase and sale agreement. This legal document outlines the terms and conditions of the transaction, including the purchase price, closing date, and other contingencies.
However, even with a well-drafted purchase and sale agreement, there may be unexpected issues that arise during the course of the transaction. This is where an addendum to the purchase and sale agreement comes into play.
An addendum is a document that is added to the original agreement to address any additional terms or changes that may be necessary. In Washington state, there are specific rules and regulations surrounding the use of addenda in real estate transactions.
Here are some key things to keep in mind when drafting an addendum to a purchase and sale agreement in Washington state:
1. Use standard forms: The Washington Association of Realtors provides standard forms for various types of addenda that can be used in real estate transactions. It is important to use these standard forms to ensure that the addendum is legally valid and enforceable.
2. Clearly state the purpose of the addendum: The addendum should clearly state why it is being added to the original agreement. This could be to address a contingency that was not originally included, to update information, or to make a change to the terms of the agreement.
3. Include all necessary details: The addendum should include all necessary details related to the change or addition being made. For example, if the addendum is being used to address a contingency related to the inspection, it should include details about the type of inspection, who will perform it, and any deadlines or requirements related to the inspection.
4. Make sure all parties sign the addendum: In order for the addendum to be legally binding, all parties involved in the transaction must sign it. This includes the buyer, seller, and any agents or attorneys representing them.
Overall, an addendum to a purchase and sale agreement can be a useful tool in ensuring that a real estate transaction proceeds smoothly. By following the rules and regulations set forth by Washington state, you can ensure that your addendum is legally valid and enforceable.