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What is a Relo Addendum?
Posted By Jim On 08/23/2012 @ 7:15 am In The Home | 6 Comments
I’ve been looking at homes on Redfin  lately (no plans to relocate, just window shopping) and a term I’ve seen pop up a few times is “Relo addendum required.” Relo addendum is short for relocation addendum and it usually means that the home is being sold through a relocation company. This happens when the owner accepts a job with a relocation package but can’t sell their home before they need to move. The home is then sold through a relocation company, who requires this addendum because they don’t want to deal with the hassle of learning local requirements. The addendum typically removes all warranties, sells the house “as-is,” etc. (If you see “bank addendum” then it means that the bank owns it.)
Ultimately, you negotiate with the seller and, if all is peachy, the seller, the relocation company, and you all agree on a price and the house is sold. Right before settlement, the relocation company may buy the house from the seller (if they don’t own it already) and then sell it to you. I don’t really know why this is necessary but that seems to be standard practice.
It’s important to review this addendum because it usually contains clauses that supersede clauses in the original sales contract.
Here’s another thing I thought I’d gripe about… considering how advanced we are technologically, why is the MLS still so backwards? I feel like I should be getting printouts on a dot matrix printer. The information contained in the system is so obfuscated and you’re constantly dealing with terms like this throughout a listing. Why can’t things be in plain English?
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