• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Legal Templates

Legal Templates
  • Business Forms
    Business & Contracts

    All of our legal contracts and documents are drafted and regularly updated by attorneys licensed in their respective jurisdictions, paralegals, or subject matter experts. Save your hard-earned money and time with Legal Templates.

    Top Business Forms
    Business Formation
    • Business Plan
    • LLC Operating Agreement
    • Articles of Incorporation
    • Corporate Bylaws
    • Buy-Sell Agreement
    Business Operations
    • Business Contract
    • Partnership Agreement
    • Non-Disclosure Agreement
    • Release of Liability
    • Letter of Intent
    Sales and Payments
    • Purchase Agreement
    • Sales Agreement
    • Invoice
    • Purchase Order
    • Business Purchase
    Employment and HR
    • Employment Contract
    • Employment Offer
    • Employment Verification
    • Freelance Contract
    • Non-Compete Agreement
    View All Business Forms
  • Real Estate Forms
    Real Estate

    All of our legal contracts and documents are drafted and regularly updated by attorneys licensed in their respective jurisdictions, paralegals, or subject matter experts. Save your hard-earned money and time with Legal Templates.

    Top Real Estate Forms
    Landlords
    • Lease Agreement
    • Property Management
    • Eviction Notice
    • Late Rent Notice
    • Lease Termination
    Tenants
    • Room Rental
    • Sublease Agreement
    • Roommate Agreement
    • Notice to Vacate
    • Early Lease Termination
    Home Ownership
    • Real Estate Purchase Agreement
    • Mortgage Deed
    • Quitclaim Deed
    • Deed of Trust
    • Moving Checklist
    View all Real Estate Forms
  • Personal & Family Forms
    Personal and Family

    All of our legal contracts and documents are drafted and regularly updated by attorneys licensed in their respective jurisdictions, paralegals, or subject matter experts. Save your hard-earned money and time with Legal Templates.

    Top Personal and Family Forms
    Estate Planning
    • Power of Attorney
    • Last Will & Testament
    • Living Will
    • Advance Directive
    • DNR Form
    Personal Finance
    • Bill of Sale
    • Loan Agreement
    • Purchase Agreement
    • Promissory Note
    • Sales Agreement
    Family Matters
    • Parenting Plan
    • Child Travel Consent
    • Divorce Agreement
    • Separation Agreement
    • Prenuptial Agreement
    Affidavits
    • General Affidavit
    • Gift Affidavit
    • Affidavit of Identity
    • Affidavit of Residence
    • Affidavit of Death
    View All Personal Forms
  • Support
    Resources
    • Business
    • Real Estate
    • Personal and Family
    • Financial
    • Estate Planning
    Support
    • About Us
    • Careers
    • Contact Us
    • All Legal Documents

    Monday - Friday | 9AM - 7PM EDT

    (855) 335-9779

  • Sign In
  • :email

Home Resources Real Estate Addendum vs. Amendment: Definitions and Differences

Addendum vs. Amendment: Definitions and Differences

If you buy or sell real estate, you must know a purchase agreement addendum from an amendment. LegalTemplates explains the difference.

Jana Freer

Updated July 28, 2022 | Written by Jana Freer
Reviewed by Susan Chai, Esq.

Anyone who sells or buys residential property should know the difference between a contract addendum and an amendment. Many people mistakenly use these terms interchangeably, but they serve different purposes and could cause problems during an actual transaction if misused.

Knowing the differences between the two can empower you to handle residential property transactions more effectively.

A real estate contract addendum adds new information to the original agreement or contract. An addendum does not alter the original terms in any way.

On the other hand, a purchase agreement amendment modifies the original contract’s terms in some way. Many other differences are essential to know and understand.

Related Article

Buying a house? Learn about the difference between a deed and a title to be better informed during the purchase process.

Table of Contents
  • What Is a Contract Addendum?
  • What Is a Contract Amendment?
  • Differences Between a Contract Addendum and an Amendment in Real Estate
  • Reasons for Using Addendums vs. Amendments

What Is a Contract Addendum?

A contract addendum is a legal document that attaches to the original agreement. It contains additions to the contract that were not a part of the original agreement. 

The additions do not replace any of the terms in the original agreement. Instead, the addendum is a separate document that adds new terms or information that the parties agree to after the initial agreement.

What does an addendum to a contract look like?

An addendum to a contract is a separate document. It has its headings and a signature block to legally bind the parties to the addendum. It may be attached to the original contract or filed separately.

Does an addendum supersede a contract?

No, an addendum does not change any of the original contract’s terms and only provides new or supplementary information.

How do you add an addendum to a contract?

To add an addendum to a contract, you should add a document that:

  • Creates a title that connects the addendum to the original purchase agreement and refers to the original purchase agreement by its full name/title and that this document is an addendum to that agreement
  • Establishes the contract parties
  • Identifies the effective date
  • Establishes any related terms or contract sections that affect the original agreement

What Is a Contract Amendment?

Amendments are changes to the original contract — they are not additional documents.

An amendment may occur if the parties agree to:

  • Change or alter a term in the original contract
  • Replace or add a term or terms in the original document
  • Delete a term or terms from the original contract

An amendment leaves the original contract primarily in place except for the specific details that the parties agree to alter. Amendments do not replace the entire agreement.

Differences Between a Contract Addendum and an Amendment in Real Estate

There are several key differences between a contract addendum and an amendment that may affect your real estate transaction:

How They Affect the Contract

An addendum provides new or supplementary information to the original agreement. It does not negate the original agreement’s terms.

It is a separate document added to the original contract.

An amendment changes the terms within the original document. It can do this informally as redlines, or strikethroughs, or as formally as a separate amendment document.

Which Parties Are Authorized To Execute Them

Any party may propose an addendum. This could include third parties like title companies who were not a part of the original purchase agreement. 

On the other hand, only the parties to the original purchase agreement can make an amendment.

How Frequently Do Buyers and Sellers Use Them?

Multiple addendums can be attached to an existing contract as needed. This eliminates the need to re-draft the original contract and makes it easier to carry out than an amendment.

Purpose of the Document

An addendum is best when the parties want to add something to the original purchase agreement without modifying or renegotiating it. 

An amendment clarifies the original contract — often to fix an error. 

Reasons for Using Addendums vs. Amendments

The reasons that parties may use an addendum versus an amendment also differ significantly.

Parties may use addendums for purposes such as:

  • Disclosures – The addendum may state that the seller will provide certain records like tax, property, or environmental hazard disclosures. This can protect a buyer against unforeseen issues with real estate.
  • Contingencies – You may add a contingency like a home inspection, title contingency, or financing guarantee after finalizing the original terms. 
  • HOA Documents – The homeowners association may add an addendum to outline its terms and regulations. This lays out the expectations for the buyer.

Reasons to use amendments include:

  • The price of the home changes
  • The property requires repairs
  • The closing date must change
  • The buyer’s financing changes for some reason
  • You must correct an error in the original agreement

LegalTemplates can help you get the purchase agreement addendum you need to properly handle residential real estate transactions. Download a sample form or use our step-by-step builder to create an addendum.

Jana Freer

Jana Freer

Real Estate Editor

Jana Freer has held a California real estate license since 2006 and has written extensively about the U.S. real estate market since 2011.

In This Article

  • What Is a Contract Addendum?
  • What Is a Contract Amendment?
  • Differences Between a Contract Addendum and an Amendment in Real Estate
  • Reasons for Using Addendums vs. Amendments

Legal Documents

  • All Legal Forms
  • Business Forms
  • Real Estate Forms
  • Personal and Family Forms

Popular Forms

  • Lease Agreements
  • Power of Attorney Forms
  • Eviction Notice
  • Living Will
  • Non-Disclosure Agreement

Resources

  • Legal Resources
  • Business
  • Real Estate
  • Personal & Family
  • Estate Planning
  • Financial
  • Covid-19 Resources

Company

  • Pricing
  • About Us
  • Careers
  • Contact Us
  • Partner With Us
  • Legal Dictionary

Users

  • Account
  • Terms of Use
  • Privacy Policy
  • Do Not Sell My Personal Information
McAfee - Together is power.
Trustpilot
BBB Accredited Business

(855) 335-9779, Monday-Friday, 9AM - 7PM EDT

Facebook Twitter LinkedIn

Copyright 2023 Legal Templates LLC. Legal Templates LLC is not a lawyer, or a law firm and does not engage in the practice of law. Legal Templates cannot and does not provide legal advice or legal representation. All information, software and services provided on the site are for informational purposes and self-help only and are not intended to be a substitute for a lawyer or professional legal advice. Use of this site is subject to our Terms of Use. Legaltemplates.net is owned and operated by Resume Technologies Limited, London with offices in London United Kingdom.”

Thank you for downloading one of our free legal templates!

Would you leave us a review?

We hope you've found what you need and are able to avoid the time, costs, and stress associated with dealing with a lawyer.

A review would mean the world to us (it only takes about 15 seconds).

Please check your download folder for MS Word or open tabs for PDF so you can access your FREE Legal Template Sample

Thanks again, and good luck!

Leave My Review