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The video tutorial explains how to properly use a contract amendment form. It emphasizes the importance of checking the necessary boxes on the form and clarifies the difference between an amendment and an addendum (with an addendum adding to a contract while an amendment changes it). The tutorial highlights three key areas: A (change in contract price), B (associated down payments), and C (loan amounts), urging that all lines be filled to avoid confusion. A major error agents make is failing to check the boxes, which can lead to misunderstandings regarding cash and financing details. Proper completion of these sections is crucial for clarity in the amendment process.