Today I had to educate an agent from another major company in the Jupiter area about how to use a Back Up Addendum. There’s not much to write here but I’ll do it anyway.
First, if the base Contract is a Far Bar then use the addendums intended for that Contract such as the Back up Addendum. Be sure to check the back-Up Contract box on the base Contract for this to be included as a rider. There’s only 1 blank to fill in on that Addendum and it’s a date that the back up Contract is good through. So let’s by example that the back up offer is willing to wait until say the end of the inspection period for the cash offer, then this would be the following day inserted as definate date like 15 Jan 2023.
What the agent in I mention above did is add verbiage to paragraph 20 ADDITIONAL TERMS that re-stated and contradicted the clear time lines in the base Contract. The Loan Approval Period, Inspection Period as well as the initial deposit and secondary deposits are all tied to the “Effective Date” which is defined in the base contract 3(b) but re-defined in the addendum and since the verbiage of an addendum controls over that of the base Contract then it controls and this is it: The “Effective Date” of this back-up contract shall be the date Seller delivers written notice of the termination of the prior executed contract.”
The time for the acceptance of the offer is as stated on the base Contract. It does not change. BUT the Closing Date should read, IMHO, something like ’45 days from Effective Date’.
