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Facts about the real estate addendum PDF template

An addendum is a part of an agreement that adds additional information, or it can be used to amend parts of an existing contract, and like the original agreement, it is signed by all parties and dated. The addendum in attached to and becomes part of the original contract, but it is a separate document.

Why is the real estate addendum form PDF used?

The addendum can be used to add additional information that cannot fit on the original contract. For example, if there are several buyers on the contract but not all of their legal names will fit into the space provided there could be an addendum attached.

Addendums need to be number because there could be several times during negotiations that addendums are added. This helps keep track of the agreement.

Another reason addendum forms are often used are to add lists of things. For example, the contract usually has a spot where the seller can clarify if they are removing anything that is attached to the property. Legal Match states that real property is anything affixed to the land and personal property is movable. There are occasions when the seller may want to remove things, and if the list is lengthy or needs a lot of descriptions, the addendum can be used.
real-estate-addendum-form

Who Would Use the real estate addendum form PDF?

People that would use this real estate document are:

  • Real estate agents
  • Buyers
  • Sellers
  • Real estate attorneys
  • For sale by owners
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If a buyer and seller agree to a real estate deal without a real estate agent, they can still enter into a contract and create addendums for the contract. To help the for sale by owner keep track of these forms make sure to have the property address or description of the land at the top.
Redfin states one way to describe land is to use the assessor parcel number (APN), which can be researched at the county tax assessor’s office. Each form needs to be numbered, be dated, and have all the signatures.

The escrow closing office will need to see all of the addendums. If the office sees an addendum numbered two, but there is no addendum one attached they will contact the real estate agent or the for sale buy owner parties to rectify. If the addendums were mislabeled and there is no addendum one, the buyer and seller can attach another addendum stated there was a mislabel and both parties are aware there is no addendum one. In this case, the addendum is amending the contract. Amend means to improve.

When Should You Use the real estate addendum form PDF?

There are several situations where an addendum can be used. Most often, addendums are added when there physically is not enough room on the space provided in the agreement to clearly spell out the terms. Long lists can be printed out on these forms, such as lists of affixed items being removed from the property. Some affixed things that a seller may want to remove are:

  • Gazebos
  • Plants
  • Blinds
  • Sheds
  • A built in microwave or appliance

Curtains can be a grey area, and it is helpful to have them resolved and noted on the original contract. Awnings that are attached to the house are part of the structure as demonstrated in the outdoor space graph.

Other times the form may be necessary is if there are a lot of inspections and cleaning that the seller or buyer is going to pay for. The document could keep track of what needs to be done, and who is going to pay for it. Some people may want the heating unit’s filters changed. This HVAC infographic explains why. Some more examples of inspections and cleanings that could be on the addendum that are not on a traditional real estate contract are:

  • Duct work cleaning
  • Carpet cleaning
  • Gutter cleanout
  • Automatic sprinkler inspection

What are the Consequences for not Using a real estate addendum form PDF?

One of the consequences for not using the form is an illegible contract. If the items you are trying to describe that are part of deal are lengthy and you try and squeeze them all into a tiny space, it could cause issues down the line. Either party could say they could not read the words, or they thought the word was something else or just a blob of ink. If this happens, it could cost legal fees. In the end, a judge may have to decide what the illegible document says, and it could not be in your favor.

As discussed previously if the buyer or seller have long names an addendum can help fit them on the agreement. Leaving just the first initial and last name could cause another legal situation if one person or the other declares they are not the person on the contract. It could easily be resolved by the courts, but it takes time and money for all of that to happen. The best advice is any information that is pertinent to the offer but is wordy or lengthy should be written on the addendum form and attached to the contract.

Steps for Filling Out a real estate addendum form PDF Form

The party creating the addendum needs to sign it first. Then it is presented to the other side for agreement.
The steps to fill out the document should be followed in this order:

  • Refer the addendum back to the original contract by putting the physical address of the property or legal description
  • Number them
  • Date the form
  • Signed by buyer(s) and seller(s)

Quick Questions

An addendum can be added anytime before the close of escrow as long as the buyer and seller both agree to it and sign off. If either the buyer or seller do not agree, the addendum cannot become part of the contract.

Technically, no. It may not be wise to add things that are not pertinent to the deal. If you are working with a real estate agent or having the property financed, you should probably discuss what you should and should not work out with addendums.

Once an addendum is signed, it becomes part of the contract. The only way to cancel it out is to create another document that states what specific addendum is no longer part of the deal, but all buyers and sellers must agree and sign the cancellation for it to take into effect.

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