Is there an REO addendum in Texas?

Is there an REO addendum in Texas?

Tim Hicks (Texas) REO appraisal assignments almost always require an REO addendum. There are no detailed lists provided to the appraiser. The appraiser makes a detailed list on what repairs are needed and estimated cost to bring the property to average marketable condition.

What is a bank addendum?

An addendum is an attachment to a contract that modifies the terms and conditions of an accepted offer. Addendum are used to efficiently update the terms or conditions of an accepted offer that the buyer will be required to sign as part of the Contract, and YES, you need to sign them.

What is an addendum example?

An example of an addendum being used would be if the parties wanted to add something to the original document. For instance, an individual who is purchasing a house may not want to purchase all of the furniture that is being left behind. However, after thinking about it further, he changes his mind.

When should an addendum be used?

When in doubt, always use the addendum. The addendum is a flexible document. Although you would primarily use this for adding a new condition, you can also use the addendum to exclude terms and document a detailed change or addition. The addendum has extra space so that you can get specific with line items.

What is the purpose of an addendum?

The function of an addendum is to modify, clarify, or nullify a portion of the original document, which could be as simple as extending the dates for which the contract is valid or as complex as redefining the payment schedules and deliverables.

How does an addendum look like?

The addendum needs to look like the original contract so that it is clear the two documents are connected. Use the same typeface, margins and font size. Reference the date of the original contract. Title the document in a way that shows it is an addendum to the original contract.

Is an addendum legally binding?

An addendum can be created by persons other than the ones who signed the original contract. Amendments are considered part of a contract until it is next negotiated, while an addendum is a legal and binding part of the contract.

What makes an addendum enforceable?

Making Sure an Addendum Is Enforceable A contract addendum cannot be legally enforced unless both parties fully understand the new terms and agree to them in writing. You’ll also need to exchange another asset or promise to ensure the addendum has consideration and thus constitutes a valid contract.

Does an addendum supercede a contract?

The document will include any additional information or requests that the buyer did not put into the original purchase and sale agreement. The language in the addendum has the ability to override the original terms of the agreement. An addendum makes the contract more streamlined and easier to read.

What happens if seller does not sign addendum?

If the seller won’t sign the addendum, then the terms of the contract remain as they are now. As the seller, you can legally refuse to make the repairs. The buyer can then choose to close escrow or withdraw from the sale. If the buyer withdraws for this reason they would be entitled to all of their deposit back.

Does an addendum override a contract?

Typically an addendum supersedes that portion of the original contract that the addendum specifically addresses. That’s a general rule. Whether it applies in your situation depends on the details in the contract, addendum and the surrounding circumstances.

How long does a seller have to respond to an addendum?

When he/she submits a request for repairs, the buyer sometimes asks for particular contractors to do specific work. The seller typically has three business days from the time of receipt to respond to buyers.

How long does seller have to respond to repair addendum?

There is no set time frame for them to respond but 2-3 business days is standard. If both the buyers and sellers have not reached an agreement on the repair requests within ten business days of the seller signing the contract- then either party may cancel the contract and the buyer will get their earnest money back.

How do you write an addendum for repairs?

Here are some tips when writing a repair addendum.

1. Be as clear as possible about what the issue is and how you want it remedied.
2. Outline who should do the work (even if it’s in the boiler plate language, it doesn’t hurt to reiterate it).
3. Have a deadline for when the work is to be done.

What repairs do sellers need?

A buyer and seller’s real estate agents will be able to fill them in on the laws in their particular state, but in general a seller is responsible for paying to fix severe water damage or mold issues, to replace missing or broken smoke detectors, and to remedy building code violations, among other things.

What happens if seller doesn’t respond to repair requests?

The seller agrees to the fix-it list, counters it or rejects it. If the buyer doesn’t like the answer from the seller, they can cancel the contract and receive an earnest money refund.

Do sellers usually make repairs?

Required repairs a seller must make Repairs that a seller might be required to make will vary depending on the state and specific contract. “Even in California, what is required prior to sale varies depending upon the county and city,” she added.