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What is a closing addendum?

A real estate addendum modifies an original lease or purchase agreement. Items in the addendum could reflect a change in the agreed-upon price, what is included in the transfer of property, what improvements must be made before the home is paid for, or any other agreed-upon requests or responsibilities.

What does addendum mean when buying a house?

An addendum makes the contract more streamlined and easier to read. Strikeouts in the contract can become difficult to read and can cause legal issues down the road. One reason for an addendum is that the buyers have decided they want the seller to pay a portion of the closing costs.

What is the purpose of an addendum?

Instead of scratching out and handwriting over certain parts of the contract, addendums are drafted and signed to prove both buyer and seller agree. This includes: Modifying the purchase price, closing date, and financing terms.

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