Standard Addenda Clauses
To minimize the number of addenda in a contract, consider using the insertable clauses in the blank REPC addendum.
1031 Exchange - If your Buyer (or Seller) is doing a 1031 Tax Deferral, simply insert this clause and click the appropriate button.
Closing Costs - Use this clause whenever your Buyer wants to ask Seller for contributions toward Buyer's related closing costs. There are protections to the Buyer here. Don't write your own!
Disclosure of Interest - Use this clause if YOU are a Principal (Buyer/Seller), or if YOU are related to your client. Click the appropriate radio buttons to disclose your licensee status the FIRST opportunity you have. Serious fines follow those who don't disclose their interest. If in doubt, DISCLOSE!
Flexible Settlement Date - If you need to provide a date range for settlement (signing) use this clause. Simply fill in the blanks. It could be needed if the Seller isn't certain when they can close due to a home they're building, etc. Should not be a common clause you use...
Foreign Investment in Real Property Tax Act (FIRPTA) - If the Seller is a "Foreign Person" as defined by the IRS, Buyer may be required to withhold taxes per the act. If Seller discloses they are a foreign person, this clause should be included in the REPC.
Option to Keep House on Market ("Time Clause") - Listing agents should use this clause if Buyer submits the Subject to Sale of Buyer's Property addendum. See the Addenda Clauses post to strengthen this clause.
Real Estate Brokerage Payment Addendum - If the offered BAC is below the Buyer's obligation for compensation in the Buyer Broker Agreement, or if Buyer wishes Seller to pay over and above the offering on the MLS, use this addendum. The number to be entered in is OVER and ABOVE the number on the MLS listing. Don't put the full amount you want (e.g. 3%). If the MLS offers a BAC of 2% and you want 3%, ask for 1%.
Subject to Seller Securing Replacement Property - When Seller wants to be able to cancel the REPC if they can't find a suitable replacement home, use this clause. The date in 1.A. should be sufficient for Seller to complete Due Diligence or Financing due diligence.
Disclaimers: This content is the property of KW Westfield. The information is guidance for KW Westfield agents and friends and any legal references relate to ideas, practices, and laws of the State of Utah and the Utah Department of Commerce, Utah Division of Real Estate. All errors are those of the author. This IS NOT legal advice. Call Broker with specific questions and call Broker with correct information should you discover an error (highly likely).
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