Which addendum is required when a buyer needs to sell their home before purchasing a new one?

The requirement for a buyer contingency addendum is crucial in a situation where a buyer must sell their current home before proceeding with the purchase of a new one. This addendum serves to protect the buyer's interests by stipulating that the purchase of the new home is contingent upon the successful sale of their existing property.

By incorporating this addendum, the buyer can outline specific terms, such as the time frame for selling their home and what will happen if the sale does not occur within that time. It provides an assurance to both the buyer and the seller of the new home that the transaction will only proceed if certain conditions are met, thereby minimizing the risk of financial loss for the buyer.

In contrast, other addenda mentioned do not specifically address the need for the buyer to sell their home prior to purchasing a new one. For instance, the additional compensation consent pertains to arrangements where there might be additional fees or commissions involved but does not relate to property sales. The as-is addendum typically addresses the condition of the property being sold, indicating that the buyer accepts it in its current state, while the financing addendum deals with the buyer's ability to secure financing for the purchase. Neither of these would provide the necessary protections or conditions that a buyer needs when they