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How does an addendum work when selling a house or purchasing a house?
Wiki User
∙ 15y ago
An addendum is a legal document that is attached to a pre-existing legal document. It adds other terms and provisions to the original agreement. An addendum can modify or amend the original agreement. Once signed by the parties it has the same legal effect. In a real estate transaction the original document would be the Purchase and Sale Agreement. An addendum to a P&S Agreement can address issues such as financing, the contingency listing of the buyer's property, payment terms if there is to be seller financing, agreement to maintain the grounds until buyer takes possession, agreement that the seller pay for the homeowner title policy, extension of closing date, homeowner's insurance, etc.
Wiki User
∙ 15y ago
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