A purchase agreement addendum is a legal attachment to a real estate purchase agreement that either adds to or amends its terms and conditions. Generally, it is used to clarify certain provisions or add disclaimers, disclosures, contingencies, or obligations
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.
1. THE PARTIES. This Purchase Agreement Addendum (“Addendum”) made this [MM/DD/YYYY] 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.”
2. ORIGINAL AGREEMENT. This Addendum is being added to the purchase agreement between the Parties, dated [MM/DD/YYYY] , for the property located at [PROPERTY ADDRESS] (“Original Agreement”).
3. ADDITIONAL TERMS. The following terms and conditions shall be added to the Original Agreement: [PROVIDE ADDITIONAL TERMS] .
Except as specifically mentioned in this Addendum, all other terms and conditions of the Original Agreement shall remain in full force and effect.
4. 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.
Seller’s Signature: ___________________ Date: [MM/DD/YYYY]
Print Name: [SELLER’S NAME]
Buyer’s Signature: ___________________ Date: [MM/DD/YYYY]
Print Name: [BUYER’S NAME]
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.
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.
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…”
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.
Both parties are required to sign thae addendum for it to be legally binding. If the parties are signing in different locations, this section allows the document to be signed in counterparts.
Purchase Agreement – The original contract between the buyer and seller that outlines the terms of the real estate sale.
Purchase Agreement Amendment – Used exclusively to modify the terms of a purchase and sale agreement.
