Updating Seller Contributions the Right Way

Q: I represent the buyer in a pending sale. The original offer requested $8,000 in seller-paid closing costs, but the seller’s counteroffer reduced that amount to $6,000, which my buyer accepted. Now the seller has agreed to pay the full $8,000 so the buyer can close. Should I use OREF 048 – Seller Contributions Addendum to document this change, even though that form was not used originally? And should I enter only the additional $2,000 or the full $8,000?

A:  Yes, you should use OREF 048 – Seller Contributions Addendum to update the closing cost contribution. It doesn’t matter that the final amount was agreed to through a counteroffer. The opening sentence in Section 2 states, “All Seller contribution terms previously agreed to are applicable except as modified below.” This means the modification in the new addendum replaces any previously agreed-upon amount.

Also note that Section 2(b), which addresses closing cost contributions, is titled “Total Closing Costs”, not “Additional Closing Costs.” Therefore, you should enter the full $8,000 in Section 2(b) as the total amount the seller will contribute.

All comments and responses from OREF or its staff, managers, and volunteers are non-legal opinions made for general purposes. Each Forms subscriber must rely solely upon their Principal broker or personal legal counsel for specific advice and instruction. You and your client should independently confirm that the Form(s) you use are legally suitable for the purposes intended and that they are current with respect to all laws and regulations.