An addendum is a further condition or document added to an existing contract.
Key Takeaways
- An addendum in real estate transactions allows you to add terms to your contract before it is signed by both parties.
- Common addendums include contingencies such as home inspections or the sale of the buyer’s house, as well as including certain items, like furniture.
- Addendums are created before both parties sign a contract; amendments are made after the parties have signed a contract and a change must be made.