An addendum refers to an additional document that is attached to the original contract between the buyer and the seller. It can modify, clarify, or override the initial agreement, often providing detailed information on specific conditions, requirements, or terms that were not part of the original contract.
For instance, an addendum could specify certain repairs that the seller must make before the sale is finalized, or it could establish how potential issues, like damages found during an inspection, will be resolved. It could also describe particular contingencies, such as the sale being dependent on the buyer obtaining adequate financing or the sale of their existing home.
It’s important to note that any addendum becomes a legally binding part of the contract once it is signed by all parties involved, just like the original contract. This document helps to ensure that all parties are on the same page about the specifics of the agreement and can be beneficial to both buyers and sellers by providing additional clarity and security.