When you purchase a piece of real estate, you are not only buying the physical property itself, but you may also be purchasing personal property that is included with the purchase. The personal property is items that are not considered part of the real estate, such as appliances, draperies, and furniture.
A real estate purchase agreement personal property addendum is a document that outlines the personal property that is included in the sale of the real estate. This addendum is an essential part of the sales contract, as it helps eliminate ambiguity and sets clear expectations for both the buyer and the seller.
The personal property addendum typically includes a list of all items that are included in the sale, along with their current condition and any existing warranties. This list can be as specific or general as the parties desire, but it is important to make sure that both the buyer and the seller are in agreement on what items are included in the sale.
It is also common for the personal property addendum to address what happens in the event that an item is not in the same condition as it was at the time of the contract signing. For example, if the refrigerator was in working condition at the time of the contract signing, but stops working before the closing date, the addendum may specify whether the seller is responsible for repairing or replacing the refrigerator.
Another crucial aspect of the personal property addendum is that it can affect the total purchase price of the real estate. In addition to the property itself, the buyer may be paying for any included personal property. If this is the case, the addendum should specify the agreed-upon price for each item. This can also be helpful during negotiations, as the buyer and seller can use the value of the personal property to negotiate the overall purchase price.
In conclusion, a real estate purchase agreement personal property addendum is a crucial document for both the buyer and seller. It helps eliminate ambiguity and sets clear expectations for both parties regarding what personal property is included in the sale, along with its condition and value. Any potential buyers or sellers should ensure that this addendum is included in their real estate contracts to avoid any confusion during the purchasing process.