In real estate, what does an “addendum” refer to?

An "addendum" in real estate refers to a document that is added to a contract to change or clarify its terms. This is an important tool that allows parties to modify an existing agreement without having to create an entirely new contract.

For instance, an addendum might be used to extend a closing date, specify repairs to be made by the seller, or outline certain contingencies that were not included in the original contract. By incorporating modifications as an addendum, all parties maintain clarity regarding the terms of the agreement.

The other options relate to different concepts in real estate. A new contract signed by all parties would mean a complete reworking of the existing agreement rather than simply modifying it. A document used to terminate the agreement is more aligned with a termination notice rather than an addendum. Lastly, a summary of the property inspection does not pertain to contract modifications but rather addresses findings related to the physical condition of the property.