What is an addendum in a real estate contract?
An addendum is a document added to an existing contract that changes or adds a term, such as a new closing date, price, or contingency. Both parties must sign it for the change to take effect.
Use an addendum rather than editing a signed contract. Refer to the original by date and parties, state the exact change, and say that all other terms remain.
Deadlines drive most addendums. Extending a closing date or inspection period before it expires avoids default.
Common mistakes
- Editing a signed contract instead of using an addendum.
- Getting only one party’s signature.
- Not saying which original contract the addendum changes.
More questions
What is the difference between an addendum and an amendment?
People use the words loosely. Often an addendum adds terms when the contract is signed and an amendment changes it later; what matters is that both parties sign.
Does an addendum need to be notarized?
Usually not, but it must be signed by the same parties as the contract. Your title company may have preferences.
Can I change the price with an addendum?
Yes, if both parties agree and sign. A price change often follows an inspection that found more repairs.