Before you put your John Hancock on a legally binding agreement it’s critical to understand what it says. This means delving deep into legalese that is often very hard to comprehend. However, understanding the difference between an addendum and an amendment is crucial in fully understanding your documents.
What Is An Addendum?
An addendum in the legal world is a document that is attached to the original document. This document revises certain conditions and specifications stated in the original. It’s imperative to note that an addendum can override any terms and conditions placed in the original document. Furthermore, it can help to define certain items that may need more clarity. In addition, an addendum is not valid unless all parties to the original document have signed it.
What Is An Amendment?
Typically, an amendment simply serves to change already agreed upon terms and conditions of a contract. Furthermore, all parties have to sign the amendment or at least initial it in order for it to be valid.
Example Of An Addendum
Addendums are commonly used in real estate transactions. For example, when a buyer wants to add their spouse to the purchase agreement, an addendum is the solution. In this case, both the purchasers and the sellers sign the document to validate it. Lastly, the addendum is attached to the original purchase agreement, thereby making the buyer both the original person as well as the spouse added.
Example Of An Amendment
A great example of an amendment also comes from the real estate industry. For instance, if the sale price changes after both the purchaser and the seller have signed the contract, an amendment can be made. In fact, this amendment would serve to show the change in price. In addition, the loan amount would be changed to factor in the change and both parties would have to sign the document to validate it.
A Title Company You Can Trust: Colony Title
At Colony Title, we will help you through the process of getting your property’s title and help you avoid the pitfalls of hidden costs while you buy your home. We are also well trained in identifying any and all errors in public records and helping you resolve them. We specialize in real estate title insurance in both Maryland and Washington, D.C., and we will perform an expert title search, check through all past documentation, and examine records for any fraud or forgery. For more information on how we can get you into the home of your dreams, contact us online or give us a call at (410) 884-1160. To get more updates on housing markets and how to get into your home, follow us on Facebook, Twitter, LinkedIn, and Google+.