The Fine Print: Part 4: Addendum vs Amendment – Which One Do I Use?

Simply stated, an Addendum is used to add new terms, conditions, or details to a new contract. It's essentially an attachment that supplements the original contract with additional information or requirements. Furthermore, I’d like to point out that the HAR Addendum, in bold lettering, explicitly states on the Addendum form: This form is NOT for use to modify existing contracts. Use the HAR Amendment form to amend the contracts. The Amendment is used to modify or change existing terms in the original contract. This could be anything from changing contingency dates, adjusting the sales price, or updating any other contract terms already in place, such as a Buyer Credit.

Why is this important to know?

The bottom line – because legal reasons. Each form used has a specific function and could potentially cause a legal uproar. Using the incorrect forms could make the contract, or parts of it, unenforceable or invalid. Granted, the chances of this happening are probably very small, but part of the job is to not only do a good job for the clients, but also to mitigate risk. Knowing the difference between these two forms, and when to use them, could just save you from any problems in the future.