Get MD Realtors Conventional Financing Addendum 2023-2024

Unlike an amendment, an addendum does not modify the existing terms of the contract, but rather it expands upon them. Addendums are typically used when parties wish to incorporate new details without disrupting the core elements of the original agreement.

In Maryland, an addendum is often included in a real estate transaction to outline the terms and conditions of an FHA loan. This document, typically added to the sales contract or mortgage agreement, specifies the responsibilities of the buyer, seller, and lender.

For example, “This Addendum amends the Agreement dated [DATE] between [PARTY 1 NAME] and [PARTY 2 NAME].” Clear and specific language outlining the changes, clarifications or additions being made. This should leave no ambiguity regarding how the original contract is being modified.

On the other hand, in the civil law systems, addendum means any modification of a contract (for example an extension of the terms, change in payment currency, new collaterals), not just inclusion of additional attachments or exhibits.

Usually, an addendum is attached to the signed lease or purchase agreement and describes financing terms and property inspection requirements. Addendums are in frequent use within the real estate market.

The AWS Financial Services Addendum (FSA) provides financial services customers provisions to assist them in meeting regulatory requirements and can be provided to customers with an AWS Customer Agreement where required.