CONVENTIONAL FINANCING ADDENDUM
ADDENDUM dated _________________________________________________________________ to Contract of Sale
between Buyer ____________________________________________________________________________________
and Seller ________________________________________________________________________________________
for Property known as ______________________________________________________________________________.
The Contract is contingent upon Buyer obtaining a conventional loan secured by the Property as follows:
1. LOAN DETAILS:
Loan Amount $ ____________________________________
Term of Note ____________________________________ Years
Amortization ____________________________________ Years
Interest Rate ____________________________________ %
Loan Program ____________________________________
Buyer agrees to pay Loan Origination/Discount Fees:
□ $______________________ / □ ______% of the loan amount
2. LOAN INSURANCE PREMIUMS: All loan insurance premiums as required by Lender shall be paid by Buyer.
3. LOCK IN: BY ACCEPTING A LOAN AGREEMENT WHEREBY THE INTEREST RATE AND LOAN DISCOUNT FEES
ARE NOT BEING LOCKED IN, BUYER AGREES TO ACCEPT THE RATE AS CHARGED BY LENDER AT THE TIME
OF LOCK-IN AND THE RESPONSIBILITY FOR ANY ADDITIONAL FEES CHARGED. BUYER SHALL REMAIN BOUND
TO PERFORM UNDER THE CONTRACT, NOTWITHSTANDING ANY SUCH CHANGES IN THE RATE AND/OR FEES.
4. MONTHLY PAYMENT: Payments to Lender may include monthly principal and interest, plus one-twelfth of the annual
real estate taxes, ground rent, special assessments or charges, if any, hazard (fire) insurance premium, flood insurance,
and private mortgage insurance.
5. LOAN UNDERWRITING: Buyer and Seller understand that Lender may resubmit the loan to underwriting. To the
extent such changes do not conflict with the conditions of the Contract, Buyer agrees to comply with Lender’s request for
additional or updated information as required to approve the loan.
6. LENDER REQUIRED REPAIRS: In the event Lender requires any repairs or improvements (“Required Repairs”) be
made to the Property, Seller agrees to perform the Required Repairs and pay the cost thereof at or prior to settlement,
provided the total cost of the Required Repairs does not exceed $___________, (“Repair Amount”). This cost shall be
in addition to Seller’s other obligations under the terms of the Contract. Should the cost of Required Repairs
exceed the Repair Amount:
A. Seller may elect to pay the total cost of the Required Repairs, in which event the Contract shall remain in full
force and effect.
B. Seller may terminate the Contract by written notice to Buyer, which must include a written estimate of the cost
of the Required Repairs. Said written notice shall be provided to Buyer within five (5) days of Seller’s receipt of
written estimate(s).
C. The Contract shall remain in full force and effect if, within five (5) days of Buyer’s receipt of Seller’s notice of
termination, Buyer elects, in writing, to pay the difference between the cost of the Required Repairs and the
Repair Amount listed above.
D. If neither Buyer nor Seller elects to pay the excess cost of any Required Repairs, the Contract shall become
null and void; and all Deposit(s) shall be disbursed in accordance with the Deposit paragraph of the Contract.
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Copyright 2023 Maryland REALTORS®. For use by REALTOR® members of Maryland REALTORS® only. Except as negotiated by the parties to the Contract, this form may not be
altered or modified in any form without the prior express written consent of Maryland REALTORS®.
7. APPRAISAL CONTINGENCY: The Contract is contingent upon Buyer obtaining an appraisal of the Property. The
appraisal will be at Buyer’s expense and will be performed by a Maryland licensed appraiser.
If the appraised value of the Property is less than the Purchase Price as set forth in the Contract, Buyer shall
notify Seller, in writing, of such fact within ______________ (___) days from receipt of the written appraisal and shall
include a copy of the written appraisal. The written notice from Buyer to Seller shall state whether: A) Buyer elects to
proceed to purchase the Property notwithstanding the appraised value of the Property; OR B) Buyer requests the Seller to
reduce the Purchase Price to the appraised value. In the event Buyer notifies Seller of Buyer's election to proceed to
purchase the Property notwithstanding the appraised value, the Contract shall remain in full force and effect and Seller
shall have no obligation, right or election as provided in this Addendum.
Upon receipt of the written notice from Buyer of Buyer's request to reduce the Purchase Price to the appraised
value, Seller, at Seller’s election and upon written notice to Buyer not later than ____________ (____) days following
receipt by Seller of the written notice from Buyer, may either: A) agree to reduce the Purchase Price to the appraised
value of the Property, in which event the Contract shall remain in full force and effect; OR B) decline to reduce the
Purchase Price to the appraised value.
If Seller declines to reduce the Purchase Price to the appraised value, or fails to respond within the time period
above, Buyer, at Buyer’s election, not later than ________ (____) days following receipt of the written notice from Seller,
or from the date that such written notice was to have been provided by Seller, shall either: A) declare the Contract null and
void and of no further force and effect, in which event, the Deposit(s) shall be disbursed in accordance with the Deposit(s)
paragraph of the Contract; OR B) agree to purchase the Property at the Purchase Price notwithstanding the appraised
value of the Property, in which event the Contract shall remain in full force and effect, and Buyer shall pay any increase in
the down payment, interest rate, point(s) or loan origination fee(s) as required by lender without contribution by Seller
except as otherwise provided in the Contract. Buyer’s failure to provide written notice to the Seller of their election within
the agreed-upon timeframe will automatically constitute the Buyer’s agreement to elect to purchase the Property at the
Purchase Price in accordance with Option ‘B’ in this subparagraph.
All other terms and conditions of the Contract of Sale remain in full force and effect.
__________________________________________ __________________________________________
Buyer Signature Date Seller Signature Date
__________________________________________ __________________________________________
Buyer Signature Date Seller Signature Date
Page 2 of 2 1/23
Copyright 2023 Maryland REALTORS®. For use by REALTOR® members of Maryland REALTORS® only. Except as negotiated by the parties to the Contract, this form may not be
altered or modified in any form without the prior express written consent of Maryland REALTORS®.
