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“Everybody let s discuss the difference between an addendum and an amendment stay tuned then then when it s dusty difference or similarity between the addendum and the amendment. Let discuss you got a legal and binding contract. Here. We go you got a legal and binding contract.
All stipulations are wrapped around this legal and binding contract right. The resident of purchase agreement you did it hallelujah. It s good now occasionally this dna contract when i call it dna. This contract.
Which has been agreed upon with all the stipulations involved has to change or you want to add something to it all right. So let s make this crystal clear for you let me give you a nice simple example. Let s assume one sunny day. You and a buddy of yours go out to i don t know the subway.
You guys want to make a subway sandwich right you go to the restaurant. And you ask the guy behind. The counter. Hey mister.
The sandwich maker would you mind getting wheat bread..
I want ham and cheese on that you and your buddy can agree to this we re gonna share. It i want wheat bread ham and cheese and i want lettuce and tomatoes that s it he s our sure so he goes out you know he goes down. He looks at the lettuce puts it on there ham and cheese wheat bread makes it nice and pretty nice no fat wraps it up gives. It s here now that sandwich that you just made let s assume.
It s the contract you won t agree to it and you get your sandwich here wheat bread ma cheese lettuce and tomato very simple sandwich that s the contract you made its dna you guys agree to it it s done. But now your buddy says you know what i think i want to put some pickles on it whoa. He wants to add some pickles to it in this case. I want you to think of those three little words add.
If it was a contract. We would create an addendum because anything you add to some that s already created we re going to return the required an addendum. So we have a contract in art pa. That s already created and that s already agreed upon then you want to ask something to it i want you to use an addendum.
If something else is gonna be included after the fact for example. Let s assume that the seller says to the buyer hey buyer you know what during this escrow process. The carpets became destroyed my toggle went in and ripped up all the carpet something silly and the seller says but i m willing they credit you 5000. For new carpet.
That s great. But i ll be changing the sandwich are we changing the rpa now we ll have to ask something to this our pa. We have to add something to the sub sandwich. So we re gonna use the addendum.
You with me now let s talk about the amendment. The amendment is doing this the amendment is you having the rp a you having the executed residential purchase agreement you having the offer the contract that you both agree to the buyer seller agree to it s done. It s dna. It s all done lack and white.
It s agreed upon it s there and now you want to mess with this you want to change things. That already exists you want to change the dna. Then we re gonna use an amendment. It almost sounds very similar to an addendum right.
But in this case. It s already existing and you re going to move things around or take things out when i want tomatoes after all let s take it out we re going to use an amendment. Anytime. You want to add something to something that exists.
You re gonna use an addendum..
Add a dd addendum. A dd you with me amend it already exist take it out then we re gonna use an amendment. We re going to amendable going to change. It hope that makes sense to you now let s put this in perspective.
When is this gonna be used when it doubt and you don t know whether you should use amendment and addendum you don t know what document to use anytime. You want to add or change. Anything play it safe and use an addendum. I love addendum because addendums can be used for explaining.
Including excluding anything it can be used for it gives you extra lines. The document has several it s almost an open page and it says what do you want to put on me. It s an open page that says use me and if you have some explaining to do as a realtor for example. The buyer wants to include you know what you wants to buy all the furniture.
All the personal property in this house here you go addendum look at the addendum number one sofa and living room to stay number. Two dining set. And then and the dining area to remain number three all bedroom furniture be specific the bed two nightstands rocking chair and bedroom two to remain with property the end the close of escrow addendum addendum addendum. Anything to be changed in the contract addendum give it to escrow.
Know what will escrow do they will place it on an amendment escrow prefers everything on amendments..
But our way to give them the instructions to put it in an addendum right we give it to escrow and that s where in turn will place it on the official amendment. You re with me place safe make it easy for yourself. And each changez. And my opinion were new inclusions in the contract use an addendum give it to escrow once all parties have signed it and sql create boom boom boom.
Those four corners. The new amendment hope this helps yeah huh hey. By the way once you go out and make yourself a sandwich get healthy make sure. It s wheat bread.
It s a lot healthier have a great day enjoy it see you next week. Hey thanks for watching this last video hope you enjoyed it i sure did hey do us a favor. If you think a family member or a friend would also enjoy it why don t you share it with them i guarantee. It they re gonna get something out of it in addition to be have any comments questions or a topic.
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