• 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

Why It Makes Sense to Move Before Spring

Why It Makes Sense To Move Before Spring

Spring is usually the busiest season in the housing market. Many buyers wait until then to make their move, believing it’s the best time to find a home. However, that isn’t always the case when you factor in … [Read More...] about Why It Makes Sense To Move Before Spring

Home Values

Have Home Values Hit Bottom?

Whether you’re already a homeowner or you’re looking to become one, the recent headlines about home prices may leave you with more questions than answers. News stories are talking about home prices falling, and … [Read More...] about Have Home Values Hit Bottom?

Home Equity

3 Ways You Can Use Your Home Equity

If you’re a homeowner, odds are your equity has grown significantly over the last few years as home prices skyrocketed and you made your monthly mortgage payments. Home equity builds over time and can help you … [Read More...] about 3 Ways You Can Use Your Home Equity

Best Practices for Selling Your House

3 Best Practices for Selling Your House This Year

A new year brings with it the opportunity for new experiences. If that resonates with you because you’re considering making a move, you’re likely juggling a mix of excitement over your next home and a sense of … [Read More...] about 3 Best Practices for Selling Your House This Year

Median Asking Rent

Avoid The Rental Trap This Year

If you’re a renter, you likely face an important decision every year: renew your current lease, start a new one, or buy a home. This year is no different. But before you dive too deeply into your options, it … [Read More...] about Avoid The Rental Trap This Year

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 421 Listings
  • Blanco 256 Listings
  • Boerne 817 Listings
  • Bulverde 526 Listings
  • Canyon Lake 591 Listings
  • Castle Hills 19 Listings
  • Castroville 114 Listings
  • Cibolo 403 Listings
  • Comfort 59 Listings
  • Converse 659 Listings
  • Fair Oaks Ranch 47 Listings
  • Floresville 267 Listings
  • Garden Ridge 12 Listings
  • Helotes 172 Listings
  • Hill Country Village 5 Listings
  • La Vernia 191 Listings
  • Lakehills 153 Listings
  • Leon Valley 13 Listings
  • Live Oak 75 Listings
  • Mico 144 Listings
  • New Braunfels 1586 Listings
  • Olmos Park 11 Listings
  • San Antonio 11914 Listings
  • Schertz 311 Listings
  • Seguin 748 Listings
  • Selma 59 Listings
  • Shavano Park 29 Listings
  • Spring Branch 441 Listings
  • Terrell Hills 34 Listings
  • Universal City 95 Listings
  • Windcrest 33 Listings
  • Hollywood Pk 11 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 © 2009-2023 Kimberly Howell Properties, unless otherwise noted.