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A purchase agreement addendum is a legal attachment to a real estate purchase agreement that either adds to or amends its terms and conditions. Generally, it is used to clarify certain provisions or add disclaimers, disclosures, contingencies, or obligations.
What is an example of an addendum in real estate?
An addendum is added either as a disclosure to inform the buyer of an actual or potential issue on the premises. For example, the lead-based paint addendum is required if the home was built before 1978 to caution the new owner about any falling or chipping paint.
What does addendum mean for house?
What Is an Addendum? In real estate, a contract addendum is an attachment to the original agreement that details additional terms that were not outlined in the original contract. These terms typically include things like contingencies, financing details, and disclosures about the state of the home.
What is a well addendum?
A water well addendum, which is included when a water well is on a property and supplies water. This will often list inspection contingencies, due dates, and clauses related to any corrective actions that need to be taken.
What is the difference between an addendum and a contingency?
An addendum is a separate form that, once signed by the buyer and seller, becomes part of the sales contract. Appraisal contingency addendums are state-specific and allow buyers to move forward with their purchase under certain agreed-upon conditions.
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