How does an addendum modify the original real estate agreement?

An addendum modifies the original real estate agreement by adding additional terms or clarifications to the contract without altering the original agreement's fundamental structure. This means that the existing contract remains in effect, and the addendum serves as supplementary information that can clarify points, introduce new conditions, or provide further detail that is necessary for the parties involved.

Using an addendum is a common practice in real estate transactions, as it allows for flexibility and adjustments as negotiations progress or as specific situations arise without having to draft a completely new contract. This approach preserves the overall agreement while enhancing clarity and understanding between the parties involved in the transaction.

For instance, if a buyer and seller agree on certain repairs after the original contract was signed, an addendum can be created to detail these repairs, expected completion dates, and any responsibilities. By using an addendum, both parties retain the original terms and simply append the new information to it.