Real Estate “Offer to Purchase and Contract” Addendums
What is an “Offer to Purchase and Contract” addendum to a residential real estate transaction? First, an “Offer to Purchase and Contract” in North Carolina is the document governing the sale agreement of a property between the buyer and seller. Many people refer to the “Offer to Purchase and Contract” as the “OTP”. Next, an addendum or addenda is a clause or document that is added to an existing contract without changing the original language. Further, an addendum will be a legally binding part of the contract once both parties sign the addenda. Moreover, an addendum to an “Offer to Purchase and Contract” is when additional terms are added to the original agreement.
There are many different types of addendums to the “Offer to Purchase and Contract.” For example, closing date extension addendum, inspection contingency addendum, and short sale addendum just to name a few. In North Carolina, there are two main ways to have an “Offer to Purchase and Contract” addendum in real estate.
First, is the “Agreement to Amend Contract,” also known as Form 4-T. The “Agreement to Amend Contract” can be used by realtors for adding to the original “Offer to Purchase and Contract.” Examples of ways to add to the “Offer to Purchase and Contract” through the “Agreement to Amend Contract” is changing the purchase price, adding additional earnest money, changing the due diligence fee, changing the settlement date, etc.
Next, the second way to add an addendum to the “Offer to Purchase and Contract” is to have an attorney prepare an addendum to the contract. A good example of when you should have an attorney write up an addendum to the contract, is if you want to add or take away a party to the contract. On Form 4-T there isn’t an option to do that. So, either the realtors would need to prepare a whole new “Offer to Purchase and Contract,” or they could have an attorney draft an addendum to the “Offer to Purchase and Contract” that would add a party or take away a party to the contract.
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