Amendment of Purchase Agreement

What is an Amendment of Purchase Agreement?

A purchase agreement is a legal agreement that stipulates the terms and conditions with regard to a sale. An agreement to purchase is made and entered into in many business transactions, more particularly in real estate transactions. Such an agreement reflects the objectives of parties with regard to a sale.

When terms of a purchase contract are accepted by parties to the agreement by executing it, the agreement becomes a complete and binding document. To make any necessary change to previously agreed terms, an amendment should be made. An amendment to an agreement is a document that legally brings about any change to an existing contract.

Sometimes, after executing a purchase contract, parties to the contract may wish to change a contract term. The parties may modify or amend a contract. For modification or alteration of a purchase contract, the parties may execute an improved purchase agreement.

For modification of contract and in order to extend a contract, amendment agreement is made. Before a purchase contract amendment, all parties to the agreement must be consulted regarding the changes to be made. For instance, a buyer should obtain lenders' consent before any modification to contract is made.

An agreement to change a sales contract or a purchase contract must be carefully drafted. While drafting an amended purchase agreement, title, date, and parties of the original purchase agreement must be mentioned in the new agreement. The amended agreement must be dated and titled as an amendment to the original purchase agreement. Within the amended purchase agreement, the name and address of parties must be clearly detailed. Further, the purpose for which the parties intend to amend the original purchase agreement must be specifically stated. In order to be legally valid an amended agreement must be:

1. 1. in writing,
   
2. 2. signed by all the parties involved, and
   
3. 3. notarized.
   

In order to incorporate an original purchase agreement into an amended purchase agreement, the amended agreement must be attached to the original agreement.

In an amended real estate purchase contract, changes in date regarding various matters must be specifically provided. For instance, change in delivery date, change in date of closing and delivery of deed, date of furnishing commitment for title insurance, date of delivering possession of property, change in date for lenders' consent to loan assumption or approval of new loan, must be clearly provided in an amended real estate purchase contract.