Short Answer
A real estate addendum is a document that modifies, adds to, or clarifies the terms of the original purchase contract. Addendums are used when the buyer and seller agree to changes after the contract is signed, such as extending the closing date, changing the purchase price, adding or removing contingencies, or addressing repair requests. Both parties must sign the addendum for it to be valid. Addendums become part of the original contract.
Addendums are a common and necessary part of real estate transactions. After the initial contract is signed, circumstances often change, requiring modifications to the agreement. Common addendums include a repair addendum, which lists the repairs the seller agrees to make after the inspection; an extension addendum, which extends the closing date or other deadlines; a price change addendum, which adjusts the purchase price; a financing addendum, which modifies the financing terms; and an attorney review addendum, which is common in New Jersey. Each addendum must be in writing, signed by both parties, and reference the original contract. Addendums become part of the contract and are legally binding. They should be specific about what is being changed and should not contradict other terms of the contract. Your agent or attorney will prepare the addendum and ensure it is properly executed. Keep copies of all addendums with your original contract for your records.
Bob's Advice
Redfin Senior Agent · AI Certified Agent
Addendums are a normal part of the process. I have seen everything from a repair addendum for a cracked window to a price reduction addendum after a low appraisal. The key is making sure every change is documented in writing and signed by both parties. Verbal agreements are not enforceable. If you agree to a change with the other party, make sure it is put in writing through an addendum. I will handle the paperwork and make sure everything is properly executed.
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