Amendment

Amendment Definition

Amendment is a change to the original contract and terms — any additional items to the original agreed terms.

Explanation

When buyers, sellers, brokers, landlords, and/or tenants agree on different terms other than the original ones, an addenda is created with those terms. This addenda is usually called an amendment.

Usually a stick point in a transaction that gets its own separate addendum as a highlighted term.

At times, after a negotiation has been reached between all parties, a new issue or point is raised during or at the beginning of the transaction, and that will require an addendum instead of redrafting a new contract.

Amendments can also highlight and disclose such things as mold, lead based paint, handicap arrangements, disclosures on the property, financing disclosures, etc…

 

Martha Gaffney

REAL ESTATE BROKER

Expert contributor at RealEstateWords.com

 

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