Which of the following is required for an addendum to a real estate purchase agreement to be binding?
Correct Answer
B) It must be signed by all parties to the contract
For an addendum to a purchase agreement to be legally binding in Iowa, it must be signed by all parties to the contract — both buyer and seller. An addendum modifies or supplements the original agreement and requires mutual assent, evidenced by the signatures of all contracting parties.
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Related Topics & Key Terms
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Related Concepts
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
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