Addendum to Contract

An addendum to a real estate contract is a legal document used to modify or add terms to the original purchase agreement without voiding it. After a home inspection, you might use an addendum to request repairs, credits, a price reduction, or an extension of contingency periods.

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🧾 When to Use an Addendum

You would use a contract addendum to:

Request specific repairs before closing
Ask for a seller credit at closing
Negotiate a price reduction
Extend inspection or financing contingency periods
Change the closing date
Add conditions not previously included in the original agreement

✍️ Key Elements of a Real Estate Addendum

Here’s what a standard post-inspection addendum typically includes:

Title: “Addendum to Residential Purchase Agreement” or similar.
Date: Date the addendum is being submitted.
Buyer and Seller Names: Clearly identify both parties.
Property Address: Legal or street address.
Reference to Original Contract: Include contract date and reference number if applicable.
Requested Changes:
- Example:
  
  “Seller agrees to repair the HVAC system prior to close of escrow by a licensed contractor and provide receipt of work completed.”
- Or:
  
  “Seller agrees to credit Buyer $5,000 at closing toward roof replacement.”
Effective Date: When the changes become binding (usually when both parties sign).
Signatures of Both Parties

🛠 Sample Language for Common Addenda

🧾 Repair Addendum:

“Seller agrees to repair the leaking kitchen faucet, replace the damaged water heater, and correct GFCI outlets in the bathroom prior to the close of escrow.”

💵 Seller Credit:

“Seller agrees to provide a $3,500 credit to Buyer at closing to be applied toward Buyer’s closing costs in lieu of making requested repairs.”

💲 Price Reduction:

“Purchase price shall be reduced from $415,000 to $410,000 in consideration of findings in the Buyer’s home inspection dated May 10, 2025.”

📌 Important Notes

Must be signed by both parties to be valid.
Work with your real estate agent or real estate attorney to draft it.
Addenda are part of the binding agreement once signed and override any conflicting original terms.

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