The buyer still needs a buyer
The rider identifies that the property is not presently under contract. Pricing, preparation and marketing now influence both transactions.
Paragraph 19 · Addendum V
Needing to sell your current home and having a contractual right to cancel are not the same thing.
Addendum V makes the new purchase contingent upon the sale and closing of the buyer’s identified property—but that protection can disappear if the buyer misses a three-day written-notice window.
What Addendum V does
It connects one purchase to the successful closing of another sale.
The rider identifies the buyer’s existing property and makes the replacement-home contract contingent upon that property being sold and closed by a stated date. A signed sale contract alone is not enough—the buyer’s transaction must reach closing.
The buyer also agrees to provide the replacement-home seller a copy of the sale contract with the third-party buyer’s identity and purchase price removed. Timing changes depending on whether that contract already exists when the offer is delivered.
Three statuses
The disclosure and delivery rules change as the buyer’s sale advances.
A redacted copy must be delivered
The replacement-home seller receives evidence of the sale contract without the third party’s identity or purchase-price information.
The three-day decision begins
The buyer may timely terminate in writing and recover the deposit—or miss the window and allow the contingency to expire.
The transaction chain
One delayed link can stop the replacement-home closing.
The buyer’s current-home transaction carries its own buyer, lender, appraisal, inspections, title work and closing risks.
Current home contracts
A third-party buyer signs, but contingencies and underwriting remain.
Current home closes
Title transfers, the existing mortgage is resolved and proceeds become available.
Funds and qualification
The replacement-home lender verifies cash, debt and final loan conditions.
Replacement closes
The buyer completes the new purchase only after the dependency is satisfied.
Six rider mechanics
The protection relies on identification, disclosure and notice.
Property identified
The buyer’s existing property address should be completed accurately.
Sale and closing required
The dependency is not satisfied merely because the buyer accepts an offer.
Closing deadline
The date by which the existing-property sale must close should coordinate with the replacement purchase.
Contract copy delivered
The seller receives a copy after the buyer enters a sale contract, subject to permitted redaction.
Three-day notice
If the sale does not close by the date, the buyer may terminate through timely written notice.
Silence removes protection
If the buyer does not timely terminate, the contingency has no further force or effect.
3days after the missed sale-closing deadline
The three-day trap
The missed closing date starts a notice period—it does not automatically cancel the contract.
If the buyer’s existing property does not close by the date entered in Addendum V, the buyer may deliver written termination notice within the following three days. Timely termination results in the buyer’s deposit being refunded and both parties being released.
If the buyer fails to deliver that notice on time, the sale-of-property contingency loses its force. The buyer may remain obligated to complete the replacement purchase without this protection.
A delayed buyer, last-minute lender condition or short extension does not stop the clock by itself. If both transactions will be extended, amend the relevant dates in signed writings before relying on the new schedule.
Contract-copy timing
Already under contract and later under contract use different delivery moments.
The copy gives the replacement-home seller evidence of the chain without unnecessarily exposing selected third-party information.
Already under contract when the offer is made
- Mark that the buyer’s property is presently under contract.
- Provide the redacted contract simultaneously with the buyer’s original signed offer, or no later than 24 hours after the offer is delivered.
- Remove only the third-party identity and purchase-price information permitted by the rider.
Enters a contract after Addendum V is signed
- Provide the seller a copy upon entering the sale contract.
- Retain the material terms needed to evaluate timing and transaction status.
- Keep extensions, termination and closing updates coordinated in writing.
Manage both sides of the chain
The buyer and replacement-home seller face different risks.
Buyer checklist
- Price and prepare the existing property realistically.
- Tell the lender that loan approval or cash to close depends on the sale.
- Confirm whether the existing mortgage must be paid off before loan approval is final.
- Coordinate inspection, appraisal, financing, title and closing deadlines across both contracts.
- Deliver the required redacted contract copy on time.
- Calendar both the sale-closing date and the separate three-day notice window.
- Use an authorized method for any termination notice.
- Amend dates in writing when either transaction changes.
Seller checklist
- Determine whether the buyer’s property is listed, market-ready and realistically priced.
- Review whether it is already under contract and the evidence provided.
- Understand how far the buyer’s sale has progressed through inspections, appraisal and financing.
- Evaluate the length of time the replacement property may be tied up.
- Consider back-up-contract and kick-out strategies where appropriate.
- Track the contingency date and the following three-day period.
- Require all extensions and waivers to be documented clearly.
- Avoid relying on informal assurances from parties to the other transaction.
Delay is not the same as failure
The buyer’s sale is still alive—but its lender needs five more days.
This common scenario puts the parties at a decision point. The buyer may want to keep both transactions, while the replacement-home seller may be unwilling to extend uncertainty.
The parties can negotiate an extension, but the change must address both contracts and occur in signed writings. A promise that the current-home closing is “definitely happening” does not amend Addendum V.
1
Identify the actual blocker
Confirm whether the issue is underwriting, appraisal, title, funds, repairs or a third-party dependency.
2
Obtain reliable documentation
Request specific written status and a realistic closing path without exposing protected information unnecessarily.
3
Coordinate both contracts
Extend the existing-property sale and replacement purchase dates through the appropriate signed documents.
4
Protect the new deadline
Re-calendar the contingency date, notice period, loan conditions and replacement closing.
Where the chain breaks
The buyer’s sale can fail for reasons outside the replacement seller’s control.
Inspection dispute
The third-party buyer cancels or demands terms the Addendum V buyer cannot accept.
Low appraisal
The existing-property valuation disrupts financing or requires a price renegotiation.
Loan denial
The third-party buyer loses approval late in the process, stopping the expected proceeds.
Title problem
A lien, probate, permit or ownership issue prevents timely closing.
Another home-sale contingency
The buyer’s buyer may also need to sell property, extending the chain by another transaction.
Missed notice
Even when the sale fails, the Addendum V buyer loses protection by not terminating in writing within three days.
Frequently asked questions
Florida Addendum V, in plain English.
Does the buyer only need to place the existing home under contract?
No. Addendum V makes the replacement purchase contingent upon both the sale and closing of the identified property by the stated date.
Does the financing contingency automatically cover this dependency?
Not necessarily. Florida Realtors advises that buyers whose loan approval depends on selling another property should use Rider V for that protection.
Must the buyer provide the existing-property sale contract?
Yes. The rider requires a copy, while permitting the third party’s identity and purchase-price information to be removed.
What if the property is already under contract when the offer is made?
The buyer marks the applicable status and provides the redacted sale contract with the original signed offer or no later than 24 hours after the offer is delivered.
What happens if the existing-property sale misses its closing date?
The buyer may terminate by delivering written notice within three days afterward. Timely termination returns the deposit and releases the parties.
Does the replacement purchase terminate automatically?
No. The buyer must deliver timely written termination notice. Missing the notice period causes the contingency to have no further force or effect.
Can the parties simply agree verbally to extend the sale deadline?
They should use a signed written amendment that clearly changes the relevant date. Informal assurances do not reliably amend the contract.
What is a kick-out clause in this context?
A separately selected rider may allow the seller to continue with back-up-contract procedures and require the primary buyer to take specified action. Its exact terms should be reviewed independently.
Buying and selling at the same time?
Coordinate the contracts before one delayed closing becomes two failed transactions.
DW&Co. can help manage the timelines, communication and appropriate Florida lending, title and legal professionals across both sides of the move.
Talk with DW&Co. Real Estate