This addendum states that the contract to which it is attached is binding upon execution by the parties, and the earnest money and any option fee must be paid as provided in the back-up contract. The addendum also states that if the first contract terminates on or before the specified date and time, the back-up contract will no longer be contingent upon the termination of the first contract. For purposes of this addendum, time is of the essence and strict compliance with the times for performance will be required.
The Austin Texas Addendum for Back Up Contract is a legally binding document that serves as an additional agreement to an existing contract. It is specifically designed to address the unique circumstances and conditions that may arise in real estate transactions in Austin, Texas. This addendum is used when a buyer wants to submit a "back-up offer" on a property that is already under contract with another buyer. The purpose of the addendum is to outline the terms and conditions under which the back-up offer will be valid and in effect. It provides a framework for the buyer to become the primary contract holder in the event that the initial contract terminates or falls through. This addendum includes several key components. Firstly, it states that the buyer acknowledges the existence of a primary contract and understands that their offer will only be considered if the primary contract fails to close. It specifies the date and time by which the primary contract must terminate in order for the back-up offer to become effective. Additionally, the addendum outlines the terms and conditions of the back-up offer, including the purchase price, financing terms, inspection periods, and closing date. It is crucial for these terms to be clearly defined and agreed upon by both parties in order to avoid any confusion or disputes. There may be different types or variations of the Austin Texas Addendum for Back Up Contract, depending on the specific requirements and preferences of the parties involved. For example, there could be variations that address contingencies related to financing, appraisal, or inspection. These variations are intended to protect the interests of both the buyer and seller, ensuring that both parties have a clear understanding of their rights and obligations in the event of a back-up offer being implemented. In summary, the Austin Texas Addendum for Back Up Contract is a vital document used in real estate transactions when a buyer wishes to submit a back-up offer on a property that is already under contract. It establishes the terms and conditions of the back-up offer and ensures that both parties are aware of their rights and obligations in this situation.
