Investment Property Sale: Question on Tenant Deposits

[pixelrogue1]

PA

If the buyer and seller sign and addendum that the buyer's realtor put together spelling out the amount the buyer is credited at the closing for tenant deposits, is that addendum the ruling law? For example, what if an error was made? If the error was in the seller's favor, would the seller then be responsible in any way after the closing? If the error was in the buyer's favor (seller credited 'too much' to the buyer at closing), would the buyer need to provide a refund?

TIA for any insight!

 

[Zigner]

PA

If the buyer and seller sign and addendum that the buyer's realtor put together spelling out the amount the buyer is credited at the closing for tenant deposits, is that addendum the ruling law? For example, what if an error was made? If the error was in the seller's favor, would the seller then be responsible in any way after the closing? If the error was in the buyer's favor (seller credited 'too much' to the buyer at closing), would the buyer need to provide a refund?

TIA for any insight!

Generally, scrivener's errors are allowed to be corrected in contracts.

 

[pixelrogue1]

Generally, scrivener's errors are allowed to be corrected in contracts.

Indefinitely?

 

[quincy]

Indefinitely?

Indefinitely? What do you mean?

When an error in a contract is noticed, it should be corrected. If it is a material error, the contract could be voidable.

 

[pixelrogue1]

Thank you.

Thank you.

 

[quincy]

Thank you.

You're welcome, pixelrogue1.

As an additional note: Even if a contract might be voidable due to errors, a voidable contract is still a valid contract and could be enforced (whereas a "voided" contract is not valid and cannot be enforced).

A lot depends on the actions of the parties to the contract. Errors can be corrected in a timely manner or the parties can affirm the terms of the contract through their performance.