Seller Name Change Addendum to Real Estate Contract: What It Is and Why You Need It
If you`re in the process of buying or selling a property, you may come across a situation where a seller changes their name after the initial contract has been signed. This can happen for a variety of reasons, such as marriage, divorce, or simply wanting to use a different name. When this occurs, it`s important to create a seller name change addendum to the real estate contract to ensure that both parties are protected.
What is a seller name change addendum?
A seller name change addendum is a legal document that is attached to a real estate contract to reflect the new name of the seller. It essentially amends the original contract to include the updated information. This document should be signed by both the buyer and seller, as well as any agents involved in the transaction.
Why is a seller name change addendum necessary?
Without a seller name change addendum, the original contract may be considered void or unenforceable. This is because the legal name of the seller is an essential component of the contract. If the name on the contract does not match the name on the seller`s identification, it can lead to confusion and potential legal issues.
Additionally, if the seller changes their name after the contract has been signed but before the property is transferred, the buyer may have difficulty obtaining title insurance or financing. This is because the seller`s name on the title and mortgage documents must match their legal name.
How to create a seller name change addendum
The process of creating a seller name change addendum is relatively straightforward. It`s important to work with a real estate attorney or agent to ensure that all necessary steps are taken. Here are the basic steps:
1. Draft the addendum: The addendum should include the original contract details, the updated name of the seller, the reason for the name change, and the date of the change.
2. Obtain signatures: Both the buyer and seller, as well as any agents involved in the transaction, should sign the addendum.
3. Record the addendum: The addendum should be recorded with the county where the property is located. This ensures that the new name is reflected on the public record.
A seller name change addendum is a simple yet important document that should be created whenever a seller changes their name during a real estate transaction. It protects both parties and ensures that the transaction is completed smoothly. Don`t overlook this crucial step in the buying or selling process.