The amendment to a property purchase and sale agreement is an important and essential document in real estate transactions. With it, it is possible to change information, correct data or clarify points in the original contract.
If you are wondering if this is a legally valid instrument and when it is possible to use it, or have questions about how to make purchase and sale changes through an additive, check out our complete guide on the subject and find out:
- What is a contract amendment and what is it for?
- Differences between additive, addition and addendum;
- When to use the contractual amendment?
- How to use the contractual amendment?
- Property purchase and sale additive model.
What is a contract additive and what is it for?
After signing a contract for the purchase and sale of property by those involved, the parties are obliged to carry out what was established in the document. However, many questions arise when modifications are necessary, for example, “How to make a contract addendum?”
The legal alternative is a contractual amendment. It is noteworthy that it is not possible to carry out a unilateral change, that is, in which both parties are not in agreement, regardless of whether those involved are individuals or legal entities. The addition of a contract can only be done by express demonstration of the two parties.
Another important point is that additives can be used in different situations, as they are relevant instruments for changing the price, term and object. Furthermore, they are suitable for employment, financing and rental contracts.
Differences between Addendum, Addendum and Addendum
When changing a contract, it can be difficult to understand some technical definitions. Terms such as “contract amendment” and “contract amendment” are common and have the same meaning and purpose: to change the data in a document to correct or clarify the information.
Therefore, it does not matter whether the term used is “amendment” or “additive to a property purchase and sale agreement”. If it is registered, that is, it undergoes changes in terms of registration, there will be a real right to purchase the property in favor of the buyer.
Likewise, the addendum is most often used to refer to items added to an already signed contract. Usually, the term is more used in texts where one of the parties decides to add one more clause.
When to use the contractual amendment?
The property purchase and sale agreement amendment can be used for changes such as:
- modification of payment method;
- change in value or contractual regime;
- extension of the execution period;
- data confirmation;
- regularization of the situation.
In addition, recent events and negotiations can also be included in contract amendments, such as the signing of financing with a bank, amortization, termination, etc.
How to use the contractual amendment?
The additive term needs to have the data of the parties involved and all the information related to what is being adjusted. Therefore, it is mandatory to inform the number of the clause being modified, all the details of the changes and emphasize that the other clauses will not be modified.
The amendment to the property purchase and sale agreement must also include:
- qualification of the parties;
- property value and description;
- proof of the seller’s reputation;
- documents attesting that the property is free from any legal action;
- date of vacancy (if the property has a tenant);
- penalty clause in case one of the parties does not fulfill its obligations.
For the amendment to be valid, it must be legally formalized, registering it with the competent bodies, as was done with the original contract.
The amendment to the contract cannot be used to add goods or works for free. Also, it will not be valid on documents whose deadlines have already expired.
For this reason, if you wish to extend the duration of a purchase and sale agreement, you must do so before the term expires. After expiration, the only alternative is to draw up a new contract.
Property purchase and sale additive model
See an example of a property purchase and sale agreement amendment.
The header must contain a detailed description of the parties involved in the amendment, which must be the same as the original contract. The data to be included are: name, nationality, profession, marital status, address, identity document (with number and issuing agency) and CPF.
The first clause must refer to the original contract, mentioning what was established in it and which will be modified by the amendment.
Next, the amendment must expose the changes to the original contract, specifying in detail the modifications desired by the parties.
It is also important to describe the clauses in the original contract that will remain unchanged.
Finally, it must contain confirmation of the willingness of both parties to change the original contract, in addition to defining the number of copies and allowing space for the signature of the parties and witnesses.