In real estate, the ratified contract is everyone’s guide for what needs to happen and when so a home can be sold or purchased. But, what happens if your new construction home isn’t going to be completed by the date in your ratified contract because of weather? What if you need to switch to a new lender? This is where an addendum comes into play. Chances are if you’ve ever bought a home for sale in Lake of the Woods, Locust Grove, or elsewhere then you have probably signed an addendum.
An addendum in real estate is an attachment to the original ratified contract that explains an agreed upon change to the contract. For example, if the closing date needs to be moved an addendum can be added designating the new close date. If the seller’s last name is misspelled on the contract, like Daniel instead of Daniels, the addendum can correct the error. Maybe, the buyer requests that the washer and dryer stay in the home and the seller agrees. All of these changes to the contract are noted in addendums.
Realtors® often prefer to add an addendum rather than strike out certain wording or add information to the ratified contract because it keeps things easier to read. A great Realtor® will explain any addendums to you and share why they need to be added to the contract. Addendums, like contracts, can be signed electronically or on paper.
