Use of Riders

  • Rider 1. Counteroffer To Seller/Counteroffer To Buyer

    This rider should be used when either the buyer or seller of any real property wants to change, modify, or add to the terms of a previously submitted offer or counteroffer.

  • Rider 2 - Inspection Contingency

    This rider should be used when the buyer under a previously-executed purchase and sale contract for residential or commercial real property wants to make buyer’s obligation to purchase the property contingent upon the completion of a property inspection which must be completed by a certain date.

  • Rider 3 - Attorney's Modification

    This rider should be used when the buyer and seller under a previously executed purchase and sale contract for residential or commercial real property want to allow buyer’s and/or seller’s attorney the opportunity to make modifications to the contract in writing which are mutually agreed upon between buyer and seller before the seller becomes obligated to sell and buyer becomes obligated to buy the property that is the subject of the contract.

  • Rider 4 - Buyer's Sale/Closing Contingency

    This rider should be used when the buyer under a previously-executed purchase and sale contract for residential or commercial real property want to make buyer’s obligation to purchase the property that is the subject of the contract contingent upon either (1) buyer entering into a contract for the sale of other property owned by buyer or (2) buyer actually closing on the sale of other property owned by buyer.

  • Rider 5 - Interest Bearing Account

    This rider should be used when the buyer under a previously-executed purchase and sale contract for residential or commercial real property wants the earnest money that buyer deposits pursuant to that contract to be invested in an interest-bearing account.

  • Rider 6 - 1031 Exchange Contingency

    This rider should be used when the seller under previously-executed purchase and sale contract for residential or commercial real property wants the contract to be contingent upon seller securing a signed purchase and sale contract for replacement property before a certain date.

  • Rider 7 - Assumption of Existing Mortgage

    This rider should be used when the buyer and seller under a previously executed purchase and sale contract for residential or commercial real property agree that buyer will assume the existing mortgage on the property. The rider addresses the amount of the mortgage, the interest rate, and the amount of the monthly payments to the mortgagee. The rider also provides that the buyer’s obligation to assume the mortgage is contingent upon the mortgagee consenting to such assumption in writing prior to a certain date.

  • Rider 8 - FHA Amendatory Clause

    This rider should be used when the buyer under a previously-executed purchase and sale contract for residential real property wants to secure an FHA loan to finance the purchase of the property. The rider provides that:

    1. seller will ascertain an appraised valuation of the property before a certain date, and
    2. seller will make, prior to closing, any repairs or replacements required by the FHA or other governmental authority which appraised the property, provided such repairs and replacements do not cost seller more than a certain amount of money, or buyer may elect to terminate the contract.

  • Rider 9 - VA Financing Clause

    This rider should be used when the buyer under a previously-executed purchase and sale contract for residential real property wants to secure a VA loan to finance the purchase of the property. The rider provides that:

    1. seller will ascertain an appraised valuation of the property before a certain date, and
    2. seller will make, prior to closing, any repairs or replacements required by the VA or other governmental authority which appraised the property, provided such repairs and replacements do not cost seller more than a certain amount of money, or buyer may elect to terminate the contract.

  • Rider 10 - Purchase Money Note and Trust Deed or Articles of Agreement

    This rider should be used when the buyer and seller under a previously executed purchase and sale contract for residential or commercial real property agree that the purchase can be financed by a purchase money note and trust deed or articles of agreement. The rider allows buyer and seller to decide the amount of money buyer must put down at closing and the payment terms (including the period of time, interest rate and amortization) for purchaser’s payment of the balance of the purchase price.

  • Rider 11 - Prior Contract Termination Contingency

    This rider should be used when the buyer or seller under a previously executed purchase and sale contract for residential or commercial real property want the contract to be contingent upon buyer or seller, and the case may be, terminating an existing contract for the purchase or sale of other real property.

  • Rider 12 - Rent Roll

    This rider should be used when the previously executed purchase and sale contract pertains to residential real property that is being leased by one or more parties. Seller should complete the rider by adding information about the rental terms of existing leases.

  • Rider 13 - New Construction Insulation Disclosure

    This rider should be used when the previously-executed purchase and sale contract pertains to residential or commercial real property that is being improved with new construction and the buyer wants seller to represent and warrant the type, thickness, and R-value of the insulation that will be installed.

  • Rider 14 - Lead Based Paint Testing Contingency Clause

    This rider should be used when the buyer under a previously-executed purchase and sale contract for residential or commercial real property wants the contract to be contingent upon buyer’s investigation of the property for any lead-based paint and/or lead-based paint hazards.

  • Rider 15 - Condominium Contingency

    This rider should be used when the buyer under a previously-executed purchase and sale contract for residential real property that is subject to a homeowners association wants the contract to be contingent upon buyer’s receipt and approval of several association documents, including but not limited to the declaration, bylaws, financial statements, condominium rules and regulations and minutes from the meetings of the board of directors or managers.

  • Rider 16 - Certification of Zoning Compliance

    This rider should be used when the previously-executed purchase and sale contract pertains to residential real property located in the City of Chicago containing four dwelling units or less. The rider provides that seller must apply for and deliver a Certificate of Zoning Compliance to buyer by a certain date or buyer may terminate the contract.

  • Rider 17 - Homeowner's Insurance Contingency Clause

    This rider should be used when the buyer under a previously-executed purchase and sale contract for residential real property wants the seller to deliver a Comprehensive Loss Underwriting Exchange report on the property to buyer prior to a certain date or buyer may terminate the contract.

  • Rider 18 - Mold Inspection Contingency Clause

    This rider should be used when the buyer under a previously-executed purchase and sale contract for residential or commercial real property wants to engage an industrial hygienist or otherwise qualified mold consultant to inspect the property for mold, or conditions likely to give rise to mold, prior to a certain date. The rider further provides that if the industrial hygienist or consultant delivers a report indicating that mold or mold conditions exist at the property, buyer may terminate the contract.

  • Rider 19 - As Is Addendum

    This rider should be used when the buyer under a previously-executed purchase and sale contract for residential or commercial real property agrees to purchase the property in its "as is" condition, without any obligation of seller to repair or correct any property defects which may exist.

  • Rider 20A - Short Sale Form (Exclusive Listing Agreement)

    This rider should be used when a seller under a previously-executed exclusive listing agreement is having trouble making its mortgage payments and is interested in trying to engage in a short sale of seller's real property. By executing this rider, the seller:

    1. Expands the rights granted to broker under the exclusive listing agreement, including allowing the broker market the seller's real property as a short sale or pre-foreclosure property on MLS;
    2. Authorizes the broker to include additional contingencies in any purchase and sale contract for the real property, including a contingency for the mortgagee's approval of the purchase price and all other terms of the short sale; and
    3. Acknowledges that the amount of commission due to any cooperating broker may be reduced if seller reduces the amount of commission payable to seller's broker.
  • Rider 20B - Short Sale Form (Purchase and Sale Contract)

    This rider should be used when a seller under a previously-executed purchase and sale contract is having trouble making its mortgage payments and is interested in trying to engage in a short sale of seller's real property to buyer. This rider adds contingencies to the contract related to such short sale, including a contingency for lender's agreement to accept a payoff that is less than the balance due on the mortgage.

  • Rider 21 - Lease with Option to Purchase

    This rider should be used by a landlord and tenant under a previously-executed lease when the landlord agrees to grant tenant an option to purchase the leased property.

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