However, it also saw changes that were used in transactions if another document could have been more appropriate. Funding agreements often lead to proposed changes, says Monett, who is also an OREA trainer. “I`ve had situations where we`re dealing with a mortgage business or through a mortgage review and the buyer needs a few more days beyond the period, in the state of the initial offer. The only way to do that is if the seller agrees. In this case, an amendment is an instrument that we must use. An amendment is proposed following the adoption of a valid and enforceable offer and purchase and sale agreement (GSP). When an amendment is tabled, a party tries to amend the original agreement – technically, it is an offer of amendment. Fixing the irrevocable period in an amendment offer is also very important, particularly when the offer of change is made within the conditional period and when the proposed amendment relates to the terms and conditions. A change – a change to one or more conditions in an agreement – is a tool often used in real estate.
“If my buyers want to take something really small, I try to coach them to ask if it`s the right thing to do. I hate to see them come back to the seller to renegotiate an agreed offer on an incidental issue. On the other hand, I will also tell my sellers that they have the right to reject this amendment. A few years ago, he remembered an offer with a closing date agreed by both parties, but no one realized it coincided with a new statutory holiday. “The buyer`s representative reminded me that the bank would be closed on Monday. I thought he would get a quick one until I got through it. This is the first year that Family Day has been celebrated in Ontario. We used an amendment to change the closure to Tuesday. Christian Allan, a REALTOR® of Perth, Ont., says changes are sometimes sought after by buyers who want to reopen a transaction at a lower price.
“I`ve worked a lot with changes, and most of them happen when buyers try to renegotiate the price or remove conditions to make the offer more attractive to the seller,” she says. Changes are sometimes misused when negotiations are not concluded to everyone`s satisfaction at the offer table, according to Doug Monett, a HUNTsville REALTOR®. “I am of the opinion that if an agreement is made correctly, a change is generally not necessary. However, an amendment is sometimes necessary when an agreement slips. It is the document of choice that saves a lot of offers at the eleventh hour. Sometimes the bank needs more time to get its papers in order, Monett says. “However, this is where the transaction can disintegrate. This extension must be acceptable to both parties, and an amendment often goes around. “The buyer insisted on lower prices and wanted a change. Sometimes it`s like saying to the buyer, “Here you have to be more realistic.” Buyers consider that it is sometimes their right to come back with a change, while sellers are surprised to be asked to renegotiate. They are likely to face situations where one or both parties wish to amend an agreement.