Wraparound Addendum

  1. This Wraparound Addendum is made on DATE between PARTY_1_NAME (the Seller), of PARTY_1_ADDRESS_SINGLE_LINE and PARTY_2_NAME(the Buyer), of PARTY_2_ADDRESS_SINGLE_LINE
  2. This Wraparound Addendum modifies the property sale and purchase contract dated DATEexecuted between the Buyer and Seller for the property located at ADDRESS (the "Contract).
  3. The Property is subject to a mortgage dated MORTGAGE_DATE, made by the seller(the “Mortgage Deed”). Seller agrees to comply with all the terms and conditions of the Mortgage Deed including but not limited to those concerning taxes and insurance, other than with respect to the payment of principal or interest due under said mortgage. 
  4. The Buyer shall take the title to the Property subject to the existing mortgage on the Property (the "Wrapped Mortgage"). Buyer will not assume the Wrapped Mortgage via a qualified assumption.
  5. Buyer agrees to execute a Wrap-around promissory note payable to the Seller  as follows (the "Wraparound Note"):NOTE.
  6. Buyer shall make regular monthly payments pursuant to the terms of the Wraparound Note. The Seller shall convey title to the Property subject to payment of the Wraparound Note.
  7. Seller will continue to be obligated to pay the Mortgage in accordance with the terms of the Mortgage Deed.
  8. If the Seller herein fails to adhere to all the terms, conditions and provisions of the Mortgage Deed which may lead to a default thereunder (other than with respect to payments of principal and interest due), which shall entitle the Buyer, at its options, to  intercede and cure Seller’s default in order to prevent actual or threatened foreclosure upon the Property as a result of the said default by the Seller. Any payments made by the Buyer to cure Seller’s default shall be credited against the next instalment of principal and interest due under the Wraparound Note.
  9. In case that the Buyer defaults in making any payment owed to under the Wraparound Note, and such default is not cured within 7 days after written notice of such default, then Seller may, at its option, shall declare all outstanding sums owed on this Wraparound Note to be immediately due and payable, in addition to any other rights or remedies that Seller may have under the applicable law.


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