This document helps you change terms of a real estate purchase contract.
Updated August 9, 2024
Written by Ioana Gagiuc | Reviewed by Susan Chai, Esq.
A real estate purchase agreement amendment is a legal document that allows you to change the terms of an existing contract. It modifies the purchase agreement to address new circumstances or requirements, such as correcting errors or adjusting terms like closing dates, purchase prices, or contingencies, without having to create a brand-new contract.
Any modifications to the existing contract must be in writing to be enforceable. You should attach the amendment to the original purchase agreement, and all parties to the transaction must sign it to be considered legally binding.
Do you need to expand the terms of your real estate purchase agreement before execution? Use our real estate purchase agreement addendum.
Many situations may call for a real estate purchase agreement amendment. Here are some examples:
These situations and countless others make an amendment pivotal to help move the real estate purchase forward.
Follow these simple steps to amend a real estate purchase agreement:
The amendment must identify the relevant parties to sign the agreement and the purchased property. It should include the following information:
The amendment should reference and state the date of the original purchase agreement. Many agreements are effective on the date they are signed; others are retroactive and begin on a date earlier than the date the amendment is signed, and the rest become effective later after the amendment is signed.
A section should be dedicated to the terms of the amendment, detailing the changes you want to make to the original agreement. Be precise about what terms are being altered, added, or removed, and clearly state the new terms or conditions. If the amendment involves title details, an affidavit of title might be necessary to update or confirm the title status.
Too many people use informal language or incomplete sentences that may be unenforceable. Detailing these terms clearly helps all parties understand exactly what is changing and how it affects the overall agreement.
The amendment should include a provision that preserves any unaltered language in the original contract. For example, it could say, “Except as outlined in this amendment, all other terms and conditions of the purchase agreement remain unchanged and shall continue in full force and effect.”
This clarifies to the reader — or a court — that the rest of the original contract is unchanged and still enforceable between the parties.
Ensure that all parties involved sign the amendment to make it legally binding. Each party should provide their full legal name and signature and, if applicable, include their title or position. Collecting signatures from all parties is essential for the amendment to be enforceable and to confirm that all parties agree to the changes made.
Specify how the amendment will be delivered to all parties involved and set a deadline for acceptance. Common methods include sending the document via certified mail or email with a read receipt. Clearly defining the delivery method and acknowledgment ensures that all parties receive and confirm the amendment, which helps prevent disputes over whether the document was properly communicated.
If the amendment involves significant changes or complex legal issues, consider having it reviewed by a legal professional. A lawyer can ensure that the amendment complies with relevant laws and accurately reflects the intentions of the parties. The legal review helps mitigate risks, providing additional security for all parties involved.
You can download a real estate purchase agreement amendment template below in PDF and Word formats:
