Section e states that time is of the essence and the

  • No School
  • AA 1
  • 32

This preview shows page 30 - 32 out of 32 pages.

Section E states that time is of the essence and the terms of the addendum must be performed according to the dates specified. Addendum for “Back-Up” Contract An Addendum for “Back-Up” Contract states that a back-up contract serves as a replacement for the termination of a previous contract. Neither party is required to adhere to the terms of a back-up contract until the first contract terminates. However, the buyer of a back-up contract must still provide earnest money as well as any option fees. The addendum specifies the date that the back-up contract is contingent upon with respect to the performance of the first contract. If the first contract terminates before the specified date, the back-up contract goes into effect. If the first contract does not terminate, then the back-up contract terminates and the buyer will be refunded his or her earnest money deposit. In this particular addendum, time is of the essence and the provisions of the addendum must be performed based on the specified dates. Addendum for Reservation of Oil, Gas, and Other Minerals This addendum applies to properties that are mineral estates. A mineral estate is an estate that contains mineral rights. Mineral rights are the legal interest in the valuable items found below the surface of the property, including oil, gas, and other minerals. The seller of a mineral estate uses this addendum to retain or waive his or her mineral rights. Short Sale Addendum This sales contract addendum addresses properties that are part of a short sale transaction. A short sale is the sale of encumbered real property that produces less money than is owed to the lender. ___________________________________________________________ _ Unit 11: Contingencies, Amendments, and Addenda 430
Image of page 30

Subscribe to view the full document.

The lender essentially decides to accept a loss and release the property from the mortgage or deed of trust, allowing the property to be sold free and clear. A short sale is an alternative to foreclosure. Addendum for Property Located Seaward of the Gulf Intracoastal Waterway This addendum refers to real property in a sales transaction that is located seaward of the Gulf Intracoastal Waterway. Property near this waterway is subject to a public easement and prevents the property owner from interfering with the easement. If this addendum applies to the property for sale and the seller fails to disclose this information, a buyer can terminate the contract and retrieve his or her earnest money. Notice Used with Section 23. Termination Option The following notice pertains to Section 23 of the One to Four Residential Purchase (Resale) contract: Notice of Buyer’s Termination of Contract (38-5) Depending on the terms of the contract, the notice may or may not apply. Notice of Buyer’s Termination of Contract If a buyer opts to terminate the sales contract, this notice provides notice to the seller. The Notice of Buyer’s Termination of Contract addendum form exercises the buyer’s unrestricted right to terminate a sales contract.
Image of page 31
Image of page 32
  • Fall '19
  • Mortgage loan, FHA

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern