What are "addenda" in real estate contracts?

Addenda in real estate contracts refer to additional documents that clarify or amend the existing contract terms. These documents are critical in detailing specific changes or providing supplemental information that may not have been included in the initial contract. For instance, an addendum might specify alterations to the timeline for closing, update contingencies, or introduce additional stipulations that both parties have agreed upon after the original contract was drafted.

The use of addenda helps ensure that all parties are on the same page regarding any changes and that these modifications are formally recorded, which enhances clarity and reduces the potential for disputes. Thus, addenda serve an essential function in real estate transactions by providing a clear method for making adjustments that are legally binding and agreed upon by all signatories involved.