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Property Repair Addendum

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PROPERTY REPAIR ADDENDUM

Parties

Recitals

WHEREAS, Owner is the legal owner of the real property described at the address above and desires certain repairs and remedial work to be performed to preserve, restore, or improve the Property; and

WHEREAS, Contractor represents that it is duly licensed, capable, and available to perform the repairs described in this Addendum under the terms and conditions set forth below; and

WHEREAS, the parties entered into an original agreement dated and wish to amend and supplement that agreement by this Property Repair Addendum (Addendum).

Scope of Work

Contractor shall perform the repairs, replacements, inspections, and related services described below (collectively, the Work). Contractor shall provide labor, materials, equipment, supervision, and cleanup necessary to complete the Work in a professional and workmanlike manner consistent with industry standards.

Payment Terms

Owner agrees to pay Contractor the total contract price for the Work as set forth below. Payments shall be made in United States dollars and in accordance with the schedule specified.

Late payments shall incur a late fee of on unpaid amounts, and interest thereafter at , to the maximum extent permitted by law.

Final payment shall be due upon completion of the Work and satisfactory correction of any punchlist items, subject to receipt of lien waivers and evidence of compliance with insurance and permit conditions as set forth herein.

Term and Termination

This Addendum commences on the Start Date and continues until completion or the End Date, unless earlier terminated in accordance with this section.

Start Date:    Estimated Completion Date:

Either party may terminate this Addendum for material breach after providing the other party written notice and the opportunity to cure within the notice period specified above. Termination shall not relieve Owner of payment obligations for Work properly performed prior to termination.

Permits, Compliance & Access

Contractor shall obtain all required permits and approvals for the Work unless the parties agree in writing that Owner will obtain such permits. Compliance with applicable building codes, ordinances, and permit conditions is the responsibility of the party designated below.

Permit Responsibility:

Owner shall provide Contractor reasonable access to the Property during normal business hours to perform the Work. Contractor shall take commercially reasonable measures to minimize disruption and protect the Property and occupants.

Change Orders

Any changes to the Scope of Work or contract price shall be documented in a written change order executed by both parties. No additional work or payment shall be binding unless approved in a signed change order.

Change Order Approval Required:

Warranties and Completion

Contractor warrants that all materials and workmanship furnished under this Addendum shall be free from defects for a period of months from final completion, subject to normal wear and tear and exclusions stated in writing. Manufacturer warranties, if any, will be assigned to Owner to the extent assignable.

Insurance, Indemnity & Lien Waivers

Contractor shall maintain insurance coverage customary for the trade, including general liability and workers' compensation where required by law, and shall provide proof of insurance upon Owner's request.

Contractor agrees to indemnify and hold Owner harmless from claims arising out of Contractor's negligence or willful misconduct in performing the Work, to the extent permitted by law.

Upon receipt of payment, Contractor shall furnish unconditional waivers of mechanic's liens for the Work to the extent the payment covers the labor and materials for which the lien might otherwise be asserted.

Confidentiality

The parties acknowledge that certain information exchanged in connection with the Work may be confidential. Each party shall keep confidential all non-public business information disclosed by the other party, and shall not disclose such information except as required by law or as necessary to perform the Work, and subject to reasonable safeguards.

Governing Law

This Addendum shall be governed by and construed in accordance with the laws of the State of , without regard to conflict of laws principles.

Entire Agreement

This Addendum, together with any referenced original agreement and executed change orders, constitutes the entire agreement between the parties with respect to the subject matter herein and supersedes all prior negotiations and understandings. Any amendment to this Addendum must be in writing and signed by both parties.

Acknowledgment

Each party represents and warrants that it has the authority to enter into this Addendum, that its execution and performance will not violate any other agreement or legal obligation, and that the person signing on its behalf is authorized to bind the party to the terms set forth herein.

Owner:

By:

Date:

Contractor:

By:

Date:

Enter text✕

What a Property Repair Addendum Is

A Property Repair Addendum is a written amendment to a real estate purchase contract that specifies repairs the seller agrees to complete before closing or that the buyer will accept as-is with credits. It records scope of work, timelines, responsible parties, cost estimates, permits, inspection requirements, and who pays for repairs. The addendum becomes part of the primary agreement once signed by all parties and should reference the original contract date and property address to avoid ambiguity. Use clear descriptions and attach estimates or invoices when available.

Why Use a Property Repair Addendum

Use a Property Repair Addendum to document agreed repairs, allocate responsibility, and set enforceable deadlines. It reduces closing delays, clarifies cost allocation, preserves inspection findings, and provides a written basis for escrow holds or credits if repairs are incomplete at closing.

Why Use a Property Repair Addendum

Who Typically Prepares and Signs This Addendum

Typical participants who prepare, review, or sign a Property Repair Addendum include buyers, sellers, listing agents, and contractors.

  • Buyers — request repairs, accept credits, and approve completion before closing.
  • Sellers — agree to scope, schedule contractors, and authorize access for inspections.
  • Listing and buyer agents — negotiate terms, track deadlines, and coordinate escrow holds.

Confirm roles in writing and ensure signatures from authorized representatives appear on the addendum and date.

Essential Elements to Include

Core elements of a professional Property Repair Addendum define scope, schedule, payment, inspection, dispute resolution, and attachments to prevent disputes at closing.

Scope of Work

List each repair item with precise descriptions, materials, performance standards, and any required permits; include location on property and reference contract paragraph to avoid conflicting interpretations at closing.

Completion Deadline

Specify exact completion dates or milestones, allow for inspection windows, and state remedies if work is not finished by the deadline, including escrowed funds, credits, or right to cancel.

Responsible Party

Name the party or contractor responsible for each repair, include license numbers where applicable, and state who will obtain permits and schedule inspections to confirm compliance.

Cost and Credits

Record cost estimates or fixed amounts, whether seller will pay directly or provide credits at closing, and how change orders or overruns will be handled financially.

Inspection & Acceptance

Describe inspection protocol, acceptable workmanship standards, who conducts final inspection, and whether lenders or buyers can require reinspection before release of funds.

Attachments

Attach contractor estimates, invoices, receipts, permits, and photos; identify which attachments are binding and which serve as informational exhibits, and include signed contractor scopes when available.

Required Information Snapshot

Property Address: Full street address with ZIP
Contract Date: Original agreement date (MM/DD/YYYY)
Repair Description: Concise work list and locations
Contractor Info: Name, license, contact details
Cost Estimates: Itemized amounts and totals
Signatures and Dates: All parties sign and date

Step-by-Step Completion Process

Follow these sequential steps to complete and finalize a Property Repair Addendum accurately and minimize closing disruptions.

  • 01
    Prepare Draft: List repair items, attach estimates, and set deadlines.
  • 02
    Review Parties: Confirm responsible parties and contractor credentials.
  • 03
    Sign & Date: All parties sign, date, and initial pages.
  • 04
    Record and Distribute: Provide copies to escrow, lender, and contractor.

Configuring an Online Addendum Workflow

Configure your online addendum workflow to include conditional fields, attachments, signer order, and authentication appropriate to the transaction.

Field Configuration
Signer Order Buyer then seller then listing agent in sequence
Attachments Required Require estimates, permits, and contractor scopes as PDF attachments
Authentication Email verification plus optional SMS access code for higher trust
Conditional Logic Reveal contractor fields when seller agrees to complete repairs

Where Signed Addenda Are Sent

This section shows where to send the signed addendum and how routing typically works in a real estate transaction.

  • To Escrow Agent: Send signed copy to escrow for holdback or credit tracking.
  • To Lender: Provide lender copy when repairs affect loan conditions.
  • To Contractor: Share scope and schedule with the contractor for scheduling.
  • To County/Permits: File permit-required documentation with county as needed.

Digital Signing and File Requirements

Digital signing and eSubmission require compatible file formats, secure authentication, and retention of an audit trail consistent with federal e-signature laws.

  • File Formats: PDF, DOCX, or scanned PDF
  • Integrations: Escrow, MLS, cloud storage
  • Authentication: Email, SMS code, or RON

Typical Deadlines and Response Windows

Typical deadlines and response windows for repairs, inspections, and escrow hold releases, summarized below for reference.

Repair Completion Deadline:

Set date tied to closing or specific number of days.

Inspection Window:

Buyer has 3–7 days to inspect after completion.

Escrow Hold Release:

Release funds after inspection and acceptance or hold per agreement.

Seller Response Time:

Seller must schedule repairs within 5 business days of acceptance.

Permit Approval Time:

Permit timelines vary by county; track local processing status.

Common Preparation Mistakes to Avoid

  • Using vague repair descriptions that leave scope open to interpretation and invite disputes at final inspection or closing.
  • Failing to attach contractor estimates, permits, or license numbers, which can delay lender approval or escrow releases.
  • Omitting signature or date lines for an authorized representative, creating enforceability questions at closing.
  • Setting unrealistic deadlines without contingencies for permit delays, weather, or supply-chain interruptions, resulting in missed closings.

Risks and Consequences of Errors

Closing Delay: Rescheduling costs
Financial Liability: Unplanned repair expenses
Escrow Withhold: Funds tied up pending completion
Lender Non-Acceptance: Loan conditions may fail
Contract Termination: Buyers may cancel contract
Legal Disputes: Costly litigation risk

eSignature Vendor Pricing Snapshot

Comparison of eSignature vendor pricing and core features commonly used to execute Property Repair Addendum workflows.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial Yes, 7-day trial Varies Varies Varies Varies
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

Real-World Examples with Property Repair Addenda

These examples show how a Property Repair Addendum can resolve repair responsibilities, preserve evidence, and accelerate closing in different organizational contexts.

Martin Properties

Martin Properties used a Property Repair Addendum to process multiple small repairs remotely and document acceptance before closing.

  • Result: faster turnaround and reduced site visits.
  • "I can process and execute all of these documents online with 100% compliance and built-in security. Whether on mobile or working offline, I can get forms back to their necessary parties efficiently."

BIS

BIS centralized repair approvals and audit logs to satisfy corporate governance and vendor audits.

  • Compliance-focused approach preserved detailed audit trails.
  • Dan Rotelli noted: "We felt most comfortable with airSlate SignNow given their SOC 2 certification and strict focus on ESIGN and UETA act compliance."

Frequently Asked Questions About Property Repair Addenda

Answers to common questions about drafting, executing, and enforcing a Property Repair Addendum are provided below for practical reference.


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