Addendums - Contract Amendments vs Contract Addendums

Contract Amendment vs. Addendum: What You Should Know As a Buyer or Seller
Whether you're buying, selling, or renting out real estate, you'll likely come across an amendment or addendum at some point. Here's what you're signing up for.

If you're buying or selling a piece of real estate, you may be asked to sign an amendment or addendum or two along the way. While both mean a change to your overall agreement with the other party, there are some key differences in how the two work -- and specifically, what they mean for the original contract.

ADDENDUMS

A contract addendum adds something to the original purchase agreement. It's a separate document that, once signed, becomes a part of the agreed-upon sales contract -- essentially just another page of it.

Inspection contingencies, affording the buyer the right to a third-party inspection (home, pest, septic, etc.) prior to closing.

Sale contingencies, which allow the buyer to back out if they're unable to sell their existing property.

Financing-related addendums, including those regarding loan assumptions, mortgage approvals, and more.
Disclosures, including property condition disclosures, tax disclosures, environmental hazard disclosures, and more.

Non-realty item addenda, which states what personal property the seller has agreed to leave for the buyer (appliances, fixtures, window coverings, etc.).
Back-up contract addenda, which state that the contract only goes into effect if the seller's current contract falls through.

Buyer additions, if the original buyer wants to add their spouse or partner to the contract.

AMENDMENTS

A contract amendment is a document that modifies the original purchase agreement. It either corrects something on that initial contract or clarifies it with additional information or detail.

The sale price is changing.
You're requesting repairs or repair credits.
There's a title or appraisal issue.
There's a new closing date.
The type of financing is changing.