Addendums would be super handy if we could use them in everyday life, but alas, we usually only find them with legal documents and definitely in real estate transactions, which is still not a bad place to find them.
“An addendum is an attachment to a contract that modifies the terms and conditions of the original contract.” (Investopedia.com) All parties must agree and sign the addendum for it to be legal.
Addendums can be added on to original documents to do the following:
- Modify
- Clarify
- Nullify
A buyer may have worked with their agent to submit a contract for an offer, but later it was determined that the closing date wasn’t doable. The agent can add an addendum to the contract stating that the closing date is changing and both parties will need to agree and sign.
There are many types of addendums in real estate. Most of the time we use General Addendums and we keep it pretty simple. There are Inspection Repair and Survey Addendums, Closing Date Modification Addendums, Town Home Addendums, Delayed Occupancy Addendums, Earnest Money Addendums, Notification of Existing Real Estate Contract Addendums, and Termination Addendums.
If you have questions about addendums or anything relating to real estate, give me a call today! 479.799.3023.
