51+ Sample Addendum to Contract Templates

What Is an Addendum to Contract?

An additional attachment that is linked to an existing contract is called an addendum. It changes the conditions and terms of different agreement types in case some issues are overlooked or forgotten. According to Investopedia, addendums are most commonly applied in real estate deals, specifically when adding conditions to purchases or lease agreements. So what’s the difference between an addendum and an amendment? If you’re an agent preparing a contract for a buyer and a section of the contract fails in explaining a specific detail, then you’ll need an addendum. On the other hand, if the contract has already been approved by all parties involved, but some conditions need changing, then you’ll need an amendment.

Addenda Examples in Real Estate

As mentioned earlier, addenda can apply to several types of contracts, but it is more frequently used in real estate contracts. Some are authorized disclosures by the state while others specify issues regarding buying a property. With that said, here are some common examples:

Surveys. A survey permits a buyer to inspect a property within a specific time. This ensures a buyer that a home is in good shape. He/she can hire a qualified home inspector to check if there are repairs that need to be done. For that reason, a buyer can negotiate with the seller in case the inspector finds some damages within the area.Water rights. According to Investopedia, there are two types of water rights—riparian and littoral rights. Riparian rights grant owners access to water from rivers and streams, while litoral rights grant owners access to bodies of water such as oceans, seas, and lakes. Note that different states will have different regulations concerning the use of water. There may be limits the law has set to protect the environment.Septic addendum. This addendum is commonly used in remote areas where people frequently use septic tanks. The arrangement extension is used to set out conditions for inspecting the system. Also, it will determine who the payor is going to be for the system’s reconditioning.Hazards. An old home that has chipped paints due to rubbing can create a hazardous substance. This substance is called lead dust, and it can cause major health problems for residents. According to the Environmental Protection Agency of the United States, the federal law mandates home sellers to provide the following to home buyers—(1) a pamphlet with the title Protect Your Family From Lead In Your Home, (2) any information regarding paint hazards, (3) a statement in the contract that warns about lead, and (4) 10 days to inspect lead-based paint hazards. Before purchasing a home, a buyer can ask for assistance from a certified inspector.Sale of a property. This applies to a situation where a buyer must sell his old property before he/she can close the contract. The addendum will specify a timeline for selling and state what the terms will be if the buyer doesn’t meet the deadline. Oftentimes, buyers do this to ensure payment.Homeowners Association. A buyer must know what the property’s HOA is. Most residential groups have an HOA framework that seeks to maintain cohesiveness and cleanliness in the community. Residents elect HOA members who work to maintain utilities, understand insurances, and take care of the finances of the community or building. Usually, HOAs require owners to pay a monthly fee for the services rendered. Moreover, bylaws will set out the obligations of the association as a whole and as individual property owners.Seller financing addendum. In real estate, seller financing happens when a seller permits a buyer to apply for a mortgage instead of asking for assistance from other institutions. The reason for that often is because a buyer has a poor credit score and has a hard time getting a loan. The disadvantage of this type of financing is an interest rate that is higher compared to a standard loan, but this is all up to the seller.Electronic signature. Any signature that is digitally affixed to a file is called an electronic signature. Several contracts are made using advance software that allows signing important documents electronically. An electronic signature addendum simply authorizes the use of electronic signatures.

How to Correctly Outline and Addendum to Contract

Remember that an addendum is a supplementary sample document attached to an existing agreement in order to modify it. As long as it is written correctly, it will be enforceable. Follow the steps written below to make your outline.

Step 1: Use the Same Font Written in the Original Contract

To keep both files identical, make it look identical. Use the same margin, format, and font size. Also, refer to the original date of the contract. When you make a title, correlate it to the agreement, but state the word “addendum.” For example, Addendum to March 13, 2020 Purchase Agreement.

Step 2: Specify all the Legal Names of the Parties Involved

All the parties involved in the agreement should be named correctly. Errors in writing down the legal names of parties may cause more trouble when conflicts arise later on. Here is a good example—“The parties identified in the March 13, 2020 Purchase agreements Addendum are Kristel Montepiano (buyer) and Ivy Hermoso (seller).”

Step 3: Write in Detail the Terms to be Changed in the Original Contract

Detail all the modifications by making use of italics, bold, etc. For example, “Section II of the March 13, 2020 Purchase Agreement Addendum now includes the right of a buyer to do a home inspection for 10 days.” Don’t forget to include a statement coming from the original contract before integrating the addendum. This is to make a plain distinction between the addendum and the original arrangement.

Step 4: Give Space for Signatures and Notarization

Provide space to write the date when the addendum will operate. Also, provide lines for the parties involved to write their complete names along with their signatures. Finally, to make the contract legitimate, give space for a notary stamp along with the date and signatures of the parties involved.

Step 5: Make the Contract Legal

Here are some steps you should follow to make your document legal—(1) Ensure that your addendum is in line with your contract conditions to make it enforceable. That is why reading your existing contract terms ahead before adding addenda is vital. (2) Know the state and federal laws that govern the contract. Different states may have different regulations. (3) Ask help from a licensed lawyer. If you are unsure of the correctness of your agreement , ask guidance from an attorney.



What is the difference between an addendum and an appendix in a book?

An addendum is a new section added to a published book. The writer may be adding some new information, correcting errors, or explaining more about his/her work. On the other hand, an appendix is a part of the book that has extra information about a certain topic. Usually, it is seen on the last pages of the book. Though both sound very similar in their definitions, they comprise different materials and have different functions.

How do you distinguish addenda from riders and annexes?

Annexes are extra information given usually in table form. Riders are extra provisions given to a contract, and these are usually used in insurance companies that often change their insurance coverage. These three do have similarities, but they differ in purpose.

How do you create a “minutes” addendum?

Indeed, businesses often hold meetings, and the files used to log these meetings are what you call minutes. For that reason, if minutes need to change, then it will necessitate an addendum. What should you do to create an addendum? (1) Give the meeting participants copies of the previous minutes for review. (2) Give the minutes during the next meeting. Normally, the chairperson will start the discussion by stating the minutes given during the last meeting. If a participant wants to correct or add something, this is the best time to do so. (3) Take note of the changes directly on the copy or on another sheet of paper. (4) All members should first agree to the changes before creating the addendum. (5) Once everyone has agreed to the changes, give the minutes as well as the addendum during the next meeting. For it to be official, ask the chairperson to sign it.

What is the significance of an addendum in the medical field?

An addendum is additional information or data added to an original entry of medical records. The date written on it should be the current date the new record is added. Moreover, the person who makes it will sign it for identification purposes. For example, an addendum could say, “The liver function test showed an increase in blood ammonia levels. Randy Jones MD 02/05/2019.” Note that healthcare providers are very serious about their documentations because falsifying medical records is a criminal offense. Taking note of the wrong record will also affect a patient’s treatment, therefore, it will also affect his/her recovery.

What if a name has been misspelled in a contract?

A name that is misspelled in a contract doesn’t necessarily mean that the contract is void. For example, Reuben signed an agreement but his name was printed as “Ruben”, how will he deny it before witnesses? What will be his reason for denying that he signed the contract? Therefore, simply misspelling a name in a contract doesn’t automatically mean that it is invalid.

To achieve a certain objective, you must fill the gap between you and your goal. The same is true for addenda. You need to fill some missing parts of a contract to make it complete. If your work involves dealing with contracts every day, successfully close them all by simply using an addendum to contract.