An addendum basically refers to a supplement to the original contract or an additional part. A written contract represents the complete details of the agreement entered into by the concerned parties under the contract law. Any other terms and conditions that have been agreed upon orally cannot be considered consequential. To incorporate additional aspects in the contract before its execution a separate addendum is required. Addendum to a purchase and sale agreement provides additional aspects related with the purchase and sale agreement.
The addendum to a purchase and sale agreement refers to the previous contract and modifies or adds something more to the contract. The addendum mentions the parties involved in the contract along with the date of execution. The addendum also mentions the new details related with the contract. However these details should not in any way contradict the terms and conditions mentioned in the original agreement. These details must be carefully entered.
Addendum to a purchase and sale agreement is different than an amendment. Both amendment as well as addendum is addition made to the original contract. However addendum is used to clarify the existing terms of contract while an amendment is used to modify the terms of the contract once it has been executed. There is no limit to the number of addendum that may be incorporated in the contract. You can add how many ever you want.
Since the addendum to a purchase and sale agreement talks about certain specific aspects related to the purchase or sale these can be mentioned as clauses. The addendum should be drafted by legal experts since the language used to write an addendum is crucial because of the legal value attached to the addendum. The contract should give an indication of attached addendum. The addendum mentions relevant details like contact information of the buyer as well as seller, date and property address.
Addendum to a purchase and sale agreement should be signed in presence of witnesses as is the case with original contract. In some cases the addendum is also required to be notarized. The signature on addendum indicates that the parties agree with the details mentioned in the addendum. Addendum also prove to be useful where additions are required to be made to contract. The addendum needs to be attached at the time of registration of the contract. An addendum real estate agreement is used to incorporate financing terms or property inspection terms.