The banks are now sending addendums to the buyers as soon as the offer is accepted and the contracts are signed. Be addendum makes the inspection period null and void and gives the buyer 24 hours to have the addendum signed and submitted. They know the houses have major issues and use this as a way to get around the inspection, thus enabling them to get rid of the properties. Many Realtors don’t know that the sellers Realtors have these addendums and that they can ask for them ahead of the contract being signed. Some of the Realtors I work with demand all addemdums up front and if they receive one of these they advise the buyer to forget about the property and move on to the next one.
An addendum that is added after a signed purchase and sales agreement means nothing unless both parties agree to it. The bank cannot just arbitrarily add terms to a signed contract without the buyers agreeing. As long as the buyers do not attempt to change any terms, the bank is stuck. The bank could easily be sued for specific performance if they fail to close. But if the buyers ask for work to be done, escrow holdbacks or any change, the bank has a way out.
Banks are adding tons of addendums to sales contracts. Lead, mold, as-is, fire, safety, you name it, they have an addendum for it. But they mean nothing if they are not part of the purchase and sales agreement or unless the buyers agree.
That the point, the buyers are given 24hours to sign and return the addendum or the contract is canceled.
That is not possible unless the cancellation clause is in the original purchase and sales agreement.
Yep, the buyer signs and submits an offer with a right to inspect, then the bank returns it with a counter offer ( the addendum ). There is still no mutual agreement till buyer signs the counter offer.
Remember the bank never signed the original buyers offer.
That is not the scenario that was originally posted. The original statement was that “the offer is accepted and the contracts are signed”.
In your case, there is no mutual agreement and thus no contract so you would be correct. Different issue.
This has become common practice with bank owned properties. But the addendum are attached to the signed offer, making it a counter offer.
It does not make sense that the bank would accept and sign an offer, then send addendum later. Buyer could just toss them in the trash.
Banks are allowing about 10 days for inspection around here. They are finally coming to their senses
Same thing happens up here. There are a limited number of Brokers that are getting all the REO properties. They don’t give a crap about whether it sells or not, they just know they are on the list and will get the next listing when it comes up. Commonly up here, most of the addendums are given to the buyer’s agent so they are incorporated into the original offer.
You are right, my error, I apologize for the error. It should read offer and not contract.