A purchase agreement addendum is a legal attachment to a real estate purchase agreement that either adds additional information or amends its terms and conditions. Generally, it is used to add disclaimers, disclosures, contingencies, or obligations, or to clarify certain provisions.

An addendum can be drafted by any party involved in the transaction, including the buyer, the seller, their agents, inspectors, or title companies. Both the buyer and seller must acknowledge and agree to the addendum by signing the form.

By Type (16)

• 3rd Party Financing
• “As-Is” Addendum
• Asbestos Addendum
• Assignment Addendum
• Backup Offer Addendum
• Closing Date Addendum
• Commercial Addendum
• Earnest Money Deposit
• Escrow Holdback Agreement
• Inspection Contingency
• FHA/VA Addendum
• Mold Addendum
• Release of Earnest Money
• Residential Addendum
• Seller Financing Addendum
• Short Sale Addendum

Addendum vs. Amendment

In general, an addendum adds new provisions or information to a real estate purchase agreement while amendments change or modify existing terms and conditions. Furthermore, an addendum can be added to a purchase contract by any party involved, whereas an amendment can only be drafted and executed by the buyer and seller or their representatives.

When it comes to real estate transactions, it is common for the terms addendum and amendment to be used interchangeably and they can both achieve similar functions.

What to Include

The Parties

The addendum should mention the names of the parties (buyer and seller) in the existing agreement. The effective date of the addendum should also be included.

THE PARTIES. This Purchase Agreement Addendum (“Addendum”) made this [DATE], is by and between:

Seller: [SELLER’S NAME] (“Seller”) and

Buyer: [BUYER’S NAME] (“Buyer”).

 The Seller and Buyer are each referred to herein as a “Party” and, collectively, as the “Parties.”

Original Purchase Agreement

To connect the addendum to the original agreement, the date of the existing contract and the property address must be included. This creates a link between the documents that satisfies the provision stating that “This Agreement together with any attached addendums or disclosures…shall constitute the sole and only agreements between the parties…”

ORIGINAL AGREEMENT. This Addendum is being added to the purchase agreement dated on [ORIGINAL AGREEMENT DATE], between the Parties for the property located at [PROPERTY ADDRESS] (“Original Agreement”).

Additional Terms or Amendments

In this section, the terms that are being amended or added should be written as clearly as possible. If the terms are changing, the specific section or condition being amended in the original agreement should be mentioned.

ADDITIONAL TERMS. The following terms and conditions shall be added to the Original Agreement: [ADD ADDITIONAL TERMS]

Execution

Both parties are required to sign the addendum for it to be legally binding. Due to parties signing in different locations, this section allows the document to be signed in counterparts.

EXECUTION. This Addendum may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

IN WITNESS WHEREOF, the Parties have executed this Addendum as of the date first written above.

Seller’s Signature: ___________________ Date: ___________
Print Name: ___________________

Buyer’s Signature: ___________________ Date: ___________
Print Name: ___________________

Related Forms

Purchase Agreement – The original contract between the buyer and seller that outlines the terms of the real estate sale.

Download: PDF, Word (.docx), OpenDocument

Purchase Agreement Amendment – Another type of real estate document used for modifying the terms of a purchase and sale agreement.

Download: PDF, Word (.docx), OpenDocument