Alteration
Definition and meaning of Alteration in real estate.
An alteration is an unauthorized change made to the terms of a written contract by one party without the consent of the other parties.
In more detail
When a party makes a material alteration, meaning a change that affects the rights, duties, or obligations of the parties, the contract may be rendered voidable at the option of the innocent party. For an alteration to invalidate a contract, it must typically be intentional and significant, such as changing a sale price, a closing date, or a financing contingency.
If the change was accidental or minor, courts may allow the contract to remain in force after restoring the original terms. Real estate agents must ensure all amendments and modifications are signed and dated by all parties to prevent accusations of illegal alteration.
Key facts
| Category | Legal, Titles & Closing |
|---|---|
| Legal effect | Can make the contract voidable by the non-consenting party if the change is material |
| Required for validity | Written consent and signatures or initials of all contract parties |
| Watch out for | Modifying signed documents without formal amendments or addenda |
A seller changes the agreed-upon closing date in the sales contract from the fifteenth to the thirtieth of the month without the buyer's knowledge, allowing the buyer to void the contract.
Frequently asked questions
What is the difference between a contract alteration and a contract amendment?
An alteration is unauthorized and done by one party, whereas an amendment is a mutual agreement signed by all parties to change the terms.
Can an accidental mark on a contract void the agreement?
No, accidental marks or corrections are not considered material alterations if there was no intent to defraud or change the core agreement.
What should I do if I notice an unauthorized change on a contract?
You should immediately notify your real estate agent or attorney to address the issue, document the unauthorized change, and decide whether to accept or void the contract.