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imagine this you have found your dream
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home and you're sitting at the closing
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table ready to sign your contract but
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suddenly there's a new piece of paper in
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the stack of documents what is this it's
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a crucial part of the real estate
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process and it's called an
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addendum hello there my name is Dora and
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welcome to another video of real estate
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license wizard today we are diving in
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into the world of real estate jargon by
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discussing a highly important term
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called the addendum its definitions main
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purposes types and legal aspects let's
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get started imagine that you're buying a
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house and realizing that you want
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something to be added to the original
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contract such as a request for the
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seller to leave the fancy chandelier in
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the living room that is when an addendum
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comes in handy it allows you to make
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changes to the or original contract
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without needing to redo the whole thing
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an addendum is essentially an addition
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or a supplement to the contract is that
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little extra that gets added on the
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document and that allows you to make
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these changes to modify and clarify
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terms in the purchase agreement and what
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happens if shortly after moving into a
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new place you realize that there's a
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serious issue going on with the roof
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an addendum helps you to document the
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issue and specify who is responsible for
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fixing it an addendum may also be used
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to document any concerns and problems
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that arise during the inspection
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period now let's take a look at all the
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main purposes behind having an
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addendum it might help you with adding
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contingencies to the contract changing
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the closing date adding or removing
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appliances changing the purchase price
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adding or removing financing
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terms and last but not least adding or
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requirements but here's the thing once
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an addendum is signed by both parties it
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becomes part of the original document of
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the contract therefore it is important
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to review it and con Cons with a lawyer
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or a real estate agent before signing so
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that both parties both the seller and
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the buyer are clear on its
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implications so to sum up an addendum is
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a really handy tool in real estate it's
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an add-on to the original contract the
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original document um it gives room for
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clarifications one thing that's
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important is to be clear with all of its
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implications before the parties would
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sign I hope this video helped you to
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gain a better understanding of the term
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addendum and please stay tuned for more
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informative and fun videos on real
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estate terms after all who says that
3:15
preparing for your real estate exam
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couldn't be fun if you have any
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suggestions for future topics and terms
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to be discussed then please leave them
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Below in the comment section until next
