Continued Marketing Addendum Form - Real Estate Continued Marketing Clause
This form is an Addendum to a Residential Real Estate Sales Contract allowing for the continued marketing of the subject property by the seller while seller completes the process of fulfilling certain contingencies. If another offer is received on the property, seller must notify the buyer that a new offer has been received, and that buyer must waive the contingencies or else property may be sold to new offeror.
Continued Marketing Addendum Forms Continued Marketing Online
As a seller, it is highly advantageous to have an addendum in place so that you can continue to market the property for sale while accepting other offers. Real estate property deals can be dependent on contingencies in certain cases. For example, if a property does not have proper water supply, a buyer can insist that his/her offer price on the property is contingent on the seller securing a proper water connection. As some time is required to fulfill the condition put forward, there is a risk involved on the overall business deal. The buyer can change his/her mind and disappear and the seller will have to restart his search for a buyer. In such cases, in order to assure that the property does not miss out on a genuine buyer, a seller can have a continued marketing addendum in place. This means that the seller is free to market the property to other buyers (at the same price or even higher price) while the time period for the contingency runs.
In some cases, the nature of the contingency might be such that it depends on the buyer to fulfill it. A continued marketing addendum is a clarification made to an existing contract before its execution. An addendum to contract of sale incorporates additional information about the terms and conditions of a contract for sale of property and also gives the seller an opportunity to continue to market the property to other buyers. An addendum to contract is incorporated as part of the original contract, and can state that a purchase is contingent upon fulfillment of certain contingencies.
By creating an addendum to sales contract for continued marketing, a seller can continue to market his/her property to other prospective buyers even after locating one prospective buyer desirous of purchasing. The seller, upon receipt of another offer on the property, must issue a notice in writing to initial buyer. The new offer can be for the same or higher purchase price. The notice must describe the new offer and must call for the buyer to satisfy or waive the contingencies of the original contract upon receipt of notice. If the contingency is not waived or satisfied within the granted time, the seller has the option to terminate the contract by giving notice to the original buyer. Therefore, a seller addendum reserves the right of a seller to continue to market the property and accept another offer.
A sales contract addendum is often used as an additional document of a short-sale contract. Banks usually demand a contract addendum as an additional document in their short-sales approval process to prevent fraud and house flipping.
If you don't have a continued marketing addendum to a contract that you are going to execute, it is high time you thought about it.
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