Title Topics: Addendum vs. Amendment

Before you sign a legally binding contract or agreement, it is important to understand all the legal verbiage.

The legal terms “addendum” and “amendment” can easily be mistaken for one another, but in truth, they are very different legal items. Here are the differences:


  • A document attached to, and made a part of, the original contract
  • The language can override terms and conditions, or it can provide clarity to items that may not be spelled out
  • All parties must sign this item


  • Any changes to previously agreed upon terms/conditions
  • All parties must sign or initial to acknowledge the change.

An example of an addendum in a real estate transaction is when the purchaser of a home would like to add their spouse to the purchase agreement. Both the purchasers and the sellers will sign the addendum that is attached to the original purchase agreement.

An example of an amendment is if the sales price of the home changes after the original purchase agreement is signed, which may happen due to a variety of reasons. The loan amount would be updated and all parties would initial the amendment to acknowledge the change.

When in doubt, consult your real estate attorney to ensure you understand any and all contracts you are signing during a real estate transaction.

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