standard paperwork
Addenda
Contingencies
These are addenda that define how the transaction can be canceled and the buyer gets their earnest money back.
Financing Addendum (22A)
If the buyer is unable to obtain a pre-defined loan, the buyer may rescind the agreement and get their earnest money back.
Use this form to define the loan and the seller's contribution to loan costs.
On the first page, define the type of loan the buyer will be getting and the downpayment buyer will be using.
On the second page, define the seller's maximum contribution to costs associated with originating the loan.
You can more information on our financing forms page, including ways to waive financing, get your earnest money back, etc.
Inspection Addendum (35)
Use this form to make the purchase contingent on the subjective inspection of the buyer for x amount of days.
The buyer does not have to hire an inspector to conduct an inspection.
By 9:00 PM on the last day (see Computation of Time), the buyer must deliver an Inspection Response Addendum (35R) with one of three options:
1. Buyer waives the inspection and the transaction continues
2. Buyer requests the seller makes x, y, z fixes to the property
3. The sales price is reduced to x
If buyer goes with options 2 or 3, the seller can agree to the new terms or return earnest money to buyer.
Other Addenda
Lead Based Paint (22J)
If the property is built before 1978, use this form to disclose to the buyer that their may lead based paint in the home.
The seller will usually check the box "has no knowledge" and buyer will check the boxes for waiving the risk.
This form is required, and the listing broker will usually upload the seller signed version to the listing documents.
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Utilities (22K)
This form notes the utility sources for the property.
It must be filled out within 5 days of mutual acceptance, normally done by escrow is specified in the Purchase and Sale Agreement.
The listing agent will normally upload the seller initialed version to the listing.
Optional (22D)
This form can be used for a variety of things.
Two of the common things are the first box, to absolve agents of any risk should there be an inaccuracy with the size of the property or other material information that was marketed.
The last box is a section a blank section where you can write in anything. This is often where Selling Brokers will disclose a relationship with the buyer
Blank (34)
This is the blank section of 22D, except it is the entire page.
We generally recommend you use the 22D with your offer if you can, and reserve the 34 for miscellaneous situations that come up.
However, if you have multiple things to put down, and the 22
Escalation (35E)
This form makes it so that in the event there is a competing offer with a higher price, your Buyer's offer will increase to $x more than that.
For example, you offer $500,000 with an escalation of $5,000 and offer comes in at $525,000, your offer price increases to $530,000.
The first line in section 1 is how much this increase is (the $5,000), and the second line is the maximum price the offer can increase to.
If the maximum price is $550,000 and there's an offer for $548,000, the escalation can still be triggered, but the price is $550,000.
If the competing offer has an escalation, the maximum price of the other offer is the basis for the price of the winning offer.
RISKS:
The competing offer does not need to have the same financing or inspection terms, so if your Buyer's terms are much stronger, they may feel ripped off.
Skilled listing agents leverage this knowledge to make counter offers whether or not there are competing offers. Be ready to negotiate.
