Counter offer vs. addendum

[CANative]

In a purchase transaction does a counter offer subsequent to an addendum take precedence?

i.e.

Purchase offer, counter offer then an addendum (the addendum states the offer is contingent upon the verfication that a retaining wall and boat dock & pier can be built) and then a counter offer dated two days later and signed by seller and buyer. The counter offer has a new price and some other terms and conditions but the contingency for the wall and dock are not listed.

Does that mean that the contingency for the wall and dock are no longer part of the contract?

 

[Robert Hronek]

The 1st offer with adendum is the offer. The counter offer changes only what is countered. So if the counter only list a higher price then everything stays the same except price.

 

[PropertyEconomics]

I think if the counter offer does not restate the conditions of the prior counter they are no longer in play.
Id certainly call the Realtor or both of them and confirm.

 

[Robert Hronek]

duplicate message

 

[Mark K]

In a purchase transaction does a counter offer subsequent to an addendum take precedence?

i.e.

Purchase offer, counter offer then an addendum (the addendum states the offer is contingent upon the verfication that a retaining wall and boat dock & pier can be built) and then a counter offer dated two days later and signed by seller and buyer. The counter offer has a new price and some other terms and conditions but the contingency for the wall and dock are not listed.

Does that mean that the contingency for the wall and dock are no longer part of the contract?

It would depend on whether or not the addendum was signed by all parties or included by reference in the original offer or the signed counter offer. If the addendum was signed by the parties and the final, signed counter offer didn't change any of the terms of the addendum, then it (the addendum) remains in effect.

If the addendum was not signed by the parties or acknowledged in the offer/counter offer, than I don't believe that it has any effect on the transaction. Any addenda should be referenced in the original offer or counter offer, "See Addenda pages ---" verbiage.

Alternatively, the Addendum could say that it is "... part of an offer to purchase zzz property dated zzz by and between ...." and then signed by the parties.

If its not signed or acknowledged by all parties, it isn't included.

 

[CANative]

Original offer dated 11-11-07 and included the addendum regarding the wall and pier, signature dates: buyer 11-11-07, seller 11-13-07. Addendum signatures: Buyer signed 11-11-07, seller signed 11-13-07. On page 9 of the offer (CAR purchase agreement) the box is checked: (if checked) SUBJECT TO ATTACHED COUNTER OFFER DATED 11-12-2007. The seller dated his signature as 12-13-07 (probably an oversight.) The Counter Offer is dated 11-13-2007 (and includes new terms and pricing but no mention of the wall/pier contingency) and is dated and signed on 11-13-2007 by both parties.

:Eyecrazy:

I've done as much of the appraisal as I can without having information on the outcome of a planning and building department (actually lakebed management) about this issue. It will have an effect on the value but I'm also concerned about liability from the buyer (a "may relyer"). I'm being mildly pressured to complete the report.

 

[Randolph Kinney]

In a purchase transaction does a counter offer subsequent to an addendum take precedence?

i.e.

Purchase offer, counter offer then an addendum (the addendum states the offer is contingent upon the verfication that a retaining wall and boat dock & pier can be built) and then a counter offer dated two days later and signed by seller and buyer. The counter offer has a new price and some other terms and conditions but the contingency for the wall and dock are not listed.

Does that mean that the contingency for the wall and dock are no longer part of the contract?

The counter offfer #1 will reference the addendum is only good for that counter offer. Counter offer #2 has a section to reference the addendum. If it does not, then the counter offer #1 and its addendum is not accepted. Counter offer # is in effect being the last signed by both parties.

 

[Mike Boyd]

I think if the counter offer does not restate the conditions of the prior counter they are no longer in play.
Id certainly call the Realtor or both of them and confirm.

I agree.........but have them add it to the final counter-offer and re-signed or initialed.

 

[Richard Carlsen]

Go by the most recently dated document with both the buyers and sellers signature.

 

[Mark K]

Original offer dated 11-11-07 and included the addendum regarding the wall and pier, signature dates: buyer 11-11-07, seller 11-13-07. Addendum signatures: Buyer signed 11-11-07, seller signed 11-13-07. On page 9 of the offer (CAR purchase agreement) the box is checked: (if checked) SUBJECT TO ATTACHED COUNTER OFFER DATED 11-12-2007. The seller dated his signature as 12-13-07 (probably an oversight.) The Counter Offer is dated 11-13-2007 (and includes new terms and pricing but no mention of the wall/pier contingency) and is dated and signed on 11-13-2007 by both parties.

It looks like the Addendum is part of the transaction. I would consider the Addendum terms in my analysis.

Also, for PE and Mike B-

All terms do not have to be restated on subsequent counter offers.

Counter offers generally have a statement to the effect: "All other terms and conditions of the PA and all previous Counter Offers shall remain in effect except as modified by this Counter Offer" or some similar verbiage.