Form Rev.

3/21 Form 22AD

INCREASED DOWN PAYMENT ADDENDUM

GENERAL COMMENTS:
A. Use. Use the Increased Down Payment Addendum (Form 22AD) for a transaction where the
Buyer agrees to pay additional funds towards Buyer’s down payment, if the appraisal is less
than the purchase price.
If the additional funds are not sufficient to cover the difference between the appraised value
and the purchase price, Buyer may give notice to Seller of that fact. If Buyer still wants to
purchase the property for the purchase price, Buyer should consider not giving that notice – as
Seller will be able to terminate the Agreement. After Buyer’s notice, Seller has the option of
reducing the purchase price to the amount equal to the appraised value plus the additional funds
or Seller may terminate the Agreement.
B. Two Sections. This form has two sections. One section is for a transaction that contains a
Financing Addendum (Form 22A), where the Agreement is contingent on the Buyer obtaining
financing. The other section is for a transaction that (1) contains an Appraisal Addendum
(Form 22AA), where the Agreement is contingent on the Buyer’s appraisal of the Property;
and (2) the Buyer is still financing the purchase, but the Agreement is not contingent on the
Buyer obtaining a loan.
C. Buyer’s Representation. Buyer represents that Buyer has the funds necessary to close the
sale as required by the Addendum. In other words, Buyer must have not only the funds for the
original down payment, but also the additional funds set forth in the Addendum if the appraisal
is less than the purchase price.
D. Notice Form. The parties should use the Notice for Increased Down Payment Addendum
(Form 22ADN) for notices required by Form 22AD.

ASSISTANCE FILLING IN THE BLANKS: The following numbers refer to the numbers on
the sample form shown in this manual.
1. Date of Purchase and Sale Agreement. Insert the same date that is at the top of the first page
of the Purchase and Sale Agreement.
2. Buyer. Insert Buyer’s name(s) as on the Purchase and Sale Agreement.
3. Seller. Insert Seller’s name(s) as on the Purchase and Sale Agreement.
4. Property. Insert the Property address as on the Purchase and Sale Agreement.
5. Financing Addendum (Form 22A). Check this box if the Purchase and Sale Agreement also
contains a Financing Addendum (Form 22A).
6. Additional Down Payment. Insert the amount of additional funds that Buyer agrees to pay if
the appraisal is less than the purchase price.
7. Buyer’s Notice. Insert the number of days for Buyer’s notice that the sum of (a) the lender’s
appraised value and (b) Buyer’s Additional Funds is less than the Purchase Price.

1 Man. Rev. 3/21

Form Rev. 3/21 Form 22AD

INCREASED DOWN PAYMENT ADDENDUM

8. Seller Right to Reduce Price or Terminate. Insert the number of days Seller has to reduce
the price or terminate the Purchase and Sale Agreement after receiving notice from Buyer that
the sum of (a) lender’s appraised value and (b) Buyer’s Additional Funds is less than the
Purchase Price. If Seller does not timely respond to Buyer’s notice, the Agreement terminates
and the Earnest Money is refunded to Buyer.
9. Appraisal Addendum (Form 22AA). Check this box if the Purchase and Sale Agreement
also contains an Appraisal Addendum (Form 22AA) – and not a Financing Addendum (Form
22A).
10. Disclosure of Contingent Funds. Insert the amount of the down payment for Buyer’s loan.
Buyer is still financing the purchase, but the Agreement is not contingent on Buyer obtaining
a loan.
11. Additional Down Payment. Insert the amount of additional funds that Buyer agrees to pay if
the appraisal is less than the purchase price.
12. Buyer’s Notice. Insert the number of days for Buyer’s notice that the sum of (a) the appraised
value and (b) Buyer’s Additional Funds is less than the Purchase Price.
13. Seller Right to Reduce Price or Terminate. Insert number of days Seller has to reduce the
price or terminate the Purchase and Sale Agreement after receiving notice from Buyer that the
sum of (a) the appraised value and (b) Buyer’s Additional Funds is less than the Purchase Price.
If Seller does not timely respond to Buyer’s notice, the Agreement terminates and the Earnest
Money is refunded to Buyer.
14. Initials and Date. Buyer(s) and Seller(s) should initial and date this Addendum. Insert the
date each person initialed, not the date on the Agreement.

2 Man. Rev. 3/21

Form 22AD ©Copyright 2021
Increased Down Payment Addendum INCREASED DOWN PAYMENT Northwest Multiple Listing Service
Rev. 3/21 ALL RIGHTS RESERVED
Page 1 of 1
FOR LOW APPRAISAL
ADDENDUM TO PURCHASE & SALE AGREEMENT

1
The following is part of the Purchase and Sale Agreement dated __________________________________________ 1

2 2
between ______________________________________________________________________________ (“Buyer”) 2
Buyer Buyer

3 3
and ___________________________________________________________________________________ (“Seller”) 3
Seller Seller

4
concerning _______________________________________________________________________ (the "Property”). 4
Address City State Zip

1.  FINANCING ADDENDUM (FORM 22A). This Increased Down Payment for Low Appraisal Addendum 5
5 supersedes the "Appraisal Less Than Sale Price" provision in the Financing Addendum (Form 22A) as follows: 6

a. Additional Down Payment. If Buyer's lender's appraised value of the Property is less than the Purchase 7
Price, Buyer shall pay additional funds up to $ 6 (“Buyer’s Additional Funds”) 8
towards Buyer’s down payment to close the sale. Buyer represents that Buyer has sufficient funds to close 9
this sale in accordance with this Addendum. 10

b. Buyer’s Notice to Seller. If Buyer becomes aware that the sum of (a) lender’s appraised value and 11
(b) Buyer’s Additional Funds is less than the Purchase Price, Buyer may deliver written notice to Seller of 12
that fact, including a copy of the lender’s appraisal, within 7 days (3 days if not filled in). 13

c. Seller’s Right to Reduce Price or Terminate. If Seller receives the above notice from Buyer, Seller shall 14
deliver notice to Buyer within 8 days (3 days if not filled in): (a) reducing the Purchase Price to an 15
amount equal to lender’s appraised value plus Buyer’s Additional Funds, or (b) terminating the Agreement, 16
in which case the Earnest Money shall be refunded to Buyer. If Seller fails to timely respond, the Agreement 17
shall terminate and the Earnest Money shall be refunded to Buyer. 18

2.  APPRAISAL ADDENDUM (FORM 22AA). This Increased Down Payment for Low Appraisal Addendum 19
20
9 modifies the Appraisal Addendum (Form 22AA) as follows:
a. Disclosure of Contingent Funds. Buyer is relying on a loan or loans (the “Loan(s)”) to purchase the 21
Property, but this Agreement is not contingent on Buyer obtaining the Loan(s). Buyer shall pay 22
10  $ ______________; or  ___________ % of the Purchase price down, in addition to the Loan(s). 23

b. Additional Down Payment. If Buyer's appraised value of the Property is less than the Purchase Price, 24
Buyer shall pay additional funds up to $ 11 (“Buyer’s Additional Funds”) towards 25
Buyer’s down payment to close the sale. Buyer represents that Buyer has sufficient funds to close this 26
sale in accordance with this Addendum. Buyer may not terminate the Agreement if (a) Buyer’s appraised 27
value and (b) Buyer’s Additional Funds are equal to or greater than the Purchase Price. 28

c. Buyer’s Notice to Seller. If Buyer becomes aware that the sum of (a) Buyer’s appraised value and 29
(b) Buyer’s Additional Funds is less than the Purchase Price, Buyer may deliver written notice to Seller of 30
that fact, including a copy of the appraisal, within 12 days (3 days if not filled in). 31

d. Seller’s Right to Reduce Price or Terminate. If Seller receives the above notice from Buyer, Seller shall 32
deliver notice to Buyer within 13 days (3 days if not filled in): (a) reducing the Purchase Price 33
to an amount equal to the appraised value plus Buyer’s Additional Funds, or (b) terminating the Agreement, 34
in which case the Earnest Money shall be refunded to Buyer. If Seller fails to timely respond, the 35
Agreement shall terminate and the Earnest Money shall be refunded to Buyer. 36

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________________________ 14
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Buyer’s Initials Date Buyer’s Initials Date Seller’s Initials Date Seller’s Initials Date