For an addendum to a real estate contract to be valid in Montana, it must be:
Correct Answer
B) Signed by all parties to the original contract
An addendum modifies or adds to the terms of an existing contract and must be signed by all parties to be legally binding. It should clearly reference the original contract and describe the modifications being made. No regulatory approval, attorney drafting, or county filing is required for a standard real estate contract addendum in Montana.
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Related Topics & Key Terms
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Related Concepts
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
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