Adding a Buyer to an Agreement

There are several ways to handle this. An entirely new Offer works well, however, in a declining market the Buyers may just choose to bail.

So, draft an Amendment and be sure to add the entire, fully completed and executed APS as a Schedule “A” to the Amendment. Make sure that the new Buyer initials each page.

You might consider something along the following:

“The parties agree that John Smith shall be an additional Buyer effective 1June 2022: based upon the following:

  1. John Smith shall have an equal and undivided interest in the deposit paid under this Agreement,
  2. John Smith shall assume all rights and duties under the Agreement executed on 15 May 2022, as if he were an original party thereto,
  3. John Smith shall have an independent duty to complete the Agreement, notwithstanding the inability of the other Buyers to do so,
  4. John Smith shall indemnify and save harmless the Seller by reason of any breach of this Agreement by the other Buyers.
  5. All time periods set forth in the original Agreement shall remain the same, and time shall continue to be of the essence.”

Naturally, there may be specific issues that apply in particular transactions.

Brian Madigan LL.B., Broker

www.OntarioRealEStateSource.com

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