An addendum is a document that is added to a legally binding agreement, such as a purchase contract or lease agreement, to provide additional information or make changes to the original agreement. An addendum can be used to clarify, correct, or update the information contained in the original document, and it must be signed and dated by all parties involved in the original agreement.
Addendums are commonly used in real estate transactions, to add or change terms, such as adding contingencies, and closing dates, or to provide additional information such as disclosures or inspection results.
In a real estate purchase contract, for example, an addendum may be used to specify the closing date, include a contingency for the sale of the buyer's existing home, or to include additional terms such as seller-paid closing costs or including personal property with the sale of the property.
It's important to note that addendums have the same legal weight as the original document, and are considered part of the agreement. It is essential for parties to read and understand the addendum and any changes that it might make to the original agreement before signing it.
Overall, addendums are a useful tool to include additional information and make changes to a legally binding agreement after it has been signed, but they must be handled properly to ensure that all parties are aware of the changes and that they are legally binding.
Any addendums that are attached can be very powerful.