This week’s Learning the Lingo is not in the car on the way to school. School is now in the dining room. The word we pulled for today is a very common piece of every real estate transaction: addendum.
An addendum is a document attached to original Purchase and Sale Agreement between two parties in a real estate transaction. This document adds language or terms to the agreement that were not originally in the contract. These new terms possibly could change original arrangements.
One of the most common addendums would be the repair agreement addendum. This would occur after the home inspection and the two sides negotiate and agree to what repairs will be need to be made in order for the contract to be ratified.
Other common addendums include sale of another property or financing contingencies.
Today, we are adding a COVID-19 addendum to all real estate transactions in Virginia. These are protecting all parties involved, affording anyone that may have challenges related to contracting the virus an opportunity to extend deadlines and ratifications.