What is an "addendum" in a real estate contract?

An "addendum" in a real estate contract is a document that modifies or adds terms to the original contract. This means that it serves as a supplementary agreement that alters certain provisions or includes new terms that weren't part of the initial document. The purpose of an addendum is to provide clarity and detail, ensuring that all parties involved in the agreement are aware of the changes or additions that have been made post-signing.

For instance, if there are new financing terms or additional contingencies related to the property, these can be included in an addendum to ensure that the contract reflects the most current agreements between the parties. It is essential that addendums are properly signed and dated by all parties to be considered legally binding. This allows the real estate deal to be flexible and accommodating to changing circumstances that might arise during the negotiation process or after the initial agreement is executed.

While the other options describe different concepts—such as summaries, brochures, or witness lists—they do not accurately capture the essence of what an addendum is supposed to do within the context of a real estate contract. Thus, the defining characteristic of an addendum is its role in formally modifying or adding to existing contractual terms.