In real estate transactions, it's essential to understand the differences between an addendum and an amendment to ensure all agreements are clear and legally binding. An addendum typically provides additional information or clarifications without altering the original contract's terms. This can include things like adding specific details, schedules, or new clauses that complement the existing document.
On the other hand, amendments are used to introduce major changes to the original agreement's terms. When significant modifications are needed—such as changing the purchase price, extending deadlines, or altering key terms—these changes should be added to the contract amendment after both parties have accepted the offer.
In this video, Vivian Lee dives into the distinctions between an addendum and an amendment in a real estate contract, highlighting when and how to use each effectively. Understanding these differences is crucial for anyone involved in real estate transactions, ensuring that all changes and additions are appropriately documented and legally enforceable.