What Is an Addendum in Real Estate?
A real estate addendum is a written document that adds, removes, or clarifies terms in a signed purchase agreement. FSBO sellers often use addendums to confirm inspection results, closing dates, or repair agreements after both parties sign the main contract.
โ How Real Estate Addendums Work
- Attach to the purchase agreement: addendums become part of the contract once signed by both buyer and seller.
- Used for clarifications: such as extending the closing date, changing the sale price, or specifying repairs after inspection.
- Different from an amendment: an amendment changes contract terms directly, while an addendum adds new information or documents.
See how it ties into your FSBO purchase agreement.
๐ Why Addendums Matter in FSBO Transactions
Addendums keep a sale on track when situations change after signingโsuch as appraisal results, financing delays, or repair negotiations. They help FSBO sellers and buyers avoid confusion while maintaining a binding contract.
- Document every change for transparency
- Ensure both parties sign and date each addendum
- Keep all addendums with the final closing documents
๐ Common Real Estate Addendums
- Inspection or repair addendum
- Financing or appraisal addendum
- Closing date extension
- Title or HOA disclosure addendum
Each helps document a change while keeping the original purchase agreement valid.