• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Accessibility Statement

Follow Us on FacebookFollow Us on TwitterFollow Us on InstagramFollow Us on YouTubeRSS Feed

Kimberly Howell Properties

San Antonio Real Estate

office@kimberlyhowell.com
(210) 493-6888
  • Blog
  • About Us
  • Agents
  • Buyers
    • Neighborhoods
    • Relocation Information
  • Sellers
  • Listings
    • Available Rentals
    • Homes for Sale
    • McNair Custom Homes
    • Open Houses
  • Contact
  • Rental SearchHomes for Rent
  • REALTORS®Find an Agent
  • McNair Custom HomesNew Construction
  • Property SearchHomes for Sale
You are here: Home / Archives for non-realty items addendum

non-realty items addendum

Non-Realty Items Addendum

February 10, 2016 by khproperties Leave a Comment

Non-Realty Items Addendum

The Non-Realty Items Addendum is a form issued by the Texas Real Estate Commission that can be added onto a real estate contract and is used to purchase other items (personal property) along with the home. It’s not a terribly complicated form, but it is important to know how to use and some of the pitfalls involved in using it. The basic use of the Non-Realty Items Addendum is to add items to the purchase that are not considered part of the accessories or improvements of the home, such as refrigerators, washers, dryers, and furniture just to name a few. These so-called non-realty items are often “purchased” with the home via this addendum and considered part of the entire sale. There are a few things of note with this form though, so we encourage you not to be tricked by its seemingly simplistic appearance.

The Non-Realty Items Addendum

A. For an additional sum of $_______ and other good and valuable consideration, Seller shall convey to Buyer at closing the following personal property (specify each item carefully, include description, model numbers, serial numbers, location, and other information): _____________________

The heart of the Non-Realty Items Addendum, this section asks for two things – a monetary value that will be exchanged for the goods and a list of the goods themselves. The more specific you are about the items in question, the better. If you just say “refrigerator,” it could be argued that you mean any old refrigerator, not the shiny brand new stainless steel deluxe model in the kitchen you were referring to. The monetary value also comes up a lot in legal discussions – it has been common practice for a long time to put a value of zero in the blank, but most legal theories say that this does not pass the “good and valuable consideration” test – in other words, you need to give something to get something. There is an issue with putting a value to the items as well, but we’ll get to that in a minute.

B. Seller represents and warrants that Seller owns the personal property described in Paragraph A free and clear of all encumbrances.

C. Seller does not warrant or guarantee the condition or future performance of the personal property conveyed by this document.

These two items are pretty straight forward. They are just assuring that the seller actually owns the property free and clear and state that the seller is not held responsible if the items don’t work in the future.

A Word About Exchanging Goods for Money

The Non-Realty Items Addendum is quite common in its use, but not without some controversy. The problem is that by making it part of the contract, you are now including personal property (known as chattel, which is defined as “an item of property other than real estate”) in the purchase of the house and if a lender is financing the purchase of the home, many underwriters do not want to see a form like this. Why? Because the lender is only supposed to be loaning you money to buy a house and not any personal property along with it. Their reasoning is that if you add items to the purchase, they are technically financing the purchase of those items. Many lenders these days will tell you to remove a Non-Realty Items Addendum if they see one and many lenders encourage buyers and sellers to arrange the sale of any personal property through a private bill of sale. This way, the lender is not financing that purchase and it keeps the underwriters happy.

image courtesy of Liamfm . – it has absolutely nothing to do with the post, but we thought it looked like a fun photo

Filed Under: Real Estate Tagged With: contracts, non-realty items addendum

Primary Sidebar

Open Floorplan

Is An Open Floorplan The Right Style For You?

Open floorplan living is often billed as the perfect floor plan, bringing family together in a single room where cooking, conversation and the screen share the same space. It has been a popular feature of a … [Read More...] about Is An Open Floorplan The Right Style For You?

New Kitchen

Nine Mistakes To Avoid With A New Kitchen

No room carries more influence with a buyer than the kitchen because it’s where the everyone gathers and many memories are made. The kitchen can represent up to 20% of the entire value of a property, so it’s … [Read More...] about Nine Mistakes To Avoid With A New Kitchen

House Fire Safety

9 Ways To Avoid Housefires

A fire in your home can happen at any time of the year, but with colder months upon us it’s easy to see how the danger increases with the setting of wood-burning heaters and the use of candles to create a cozy … [Read More...] about 9 Ways To Avoid Housefires

Call A Plumber

Is It Time To Call A Plumber?

As a homeowner, you’ll inevitably have to call in a Sydney plumber to deal with plumbing problems at some stage. It’s one of the ‘pleasures’ of owning property! Choosing the right contractor can feel a little … [Read More...] about Is It Time To Call A Plumber?

First Time Homebuyer

8 Tips For First Time Homebuyers

If it's your first time buying homes for sale, it can be quite intimidating – you’ve got to deal with agents, sellers, rival buyers, banks, and title companies. And it’s not always clear what role each of them … [Read More...] about 8 Tips For First Time Homebuyers

Search Our Site

Real Estate Topics

  • Buying a Home
  • Homeowner Tips
  • KHP News
  • Local Events
  • Local Laws
  • Miscellaneous
  • Mortgages and Financing
  • Open Houses
  • Real Estate
  • Real Estate Market
  • Renters and Landlords
  • San Antonio Places
  • Sell Your Home
  • Technology
Our real estate agents can help you with properties anywhere in Texas. If you need assistance finding agents in other parts of the country, please contact us.

Search Homes

Explore Cities

  • Alamo Heights 45 Listings
  • Bandera 404 Listings
  • Blanco 180 Listings
  • Boerne 661 Listings
  • Bulverde 388 Listings
  • Canyon Lake 415 Listings
  • Castle Hills 23 Listings
  • Castroville 92 Listings
  • Cibolo 415 Listings
  • Comfort 56 Listings
  • Converse 631 Listings
  • Fair Oaks Ranch 75 Listings
  • Floresville 271 Listings
  • Garden Ridge 14 Listings
  • Helotes 204 Listings
  • Hill Country Village 3 Listings
  • La Vernia 188 Listings
  • Lakehills 132 Listings
  • Leon Valley 29 Listings
  • Live Oak 71 Listings
  • Mico 121 Listings
  • New Braunfels 1534 Listings
  • Olmos Park 8 Listings
  • San Antonio 10626 Listings
  • Schertz 329 Listings
  • Seguin 676 Listings
  • Selma 69 Listings
  • Shavano Park 10 Listings
  • Spring Branch 430 Listings
  • Terrell Hills 37 Listings
  • Universal City 75 Listings
  • Windcrest 36 Listings
  • Hollywood Pk 3 Listings

Stay up to date with the latest from Kimberly Howell Properties.

San Antonio real estate and property information provided by Kimberly Howell Properties. Kimberly Howell Properties does not assume any liability or responsibility for the operation or content of any of the linked resources, nor for any of the interpretations, comments, graphics, or opinions contained therein. All information deemed reliable, but not guaranteed.

KJH Properties, Inc. is a licensed real estate brokerage in the State of Texas, Equal Opportunity Employer, and supporter of the Fair Housing Act.

TREC Information About Brokerage Services | TREC Consumer Protection Notice | Privacy Policy

All content © 2009-2020 Kimberly Howell Properties, unless otherwise noted.