09/30/2025
📣TITLE TUESDAY TIPS📣
This week, we want to talk about contract addendums - what they are and why it is imperative your title company receives them.
▪️WHAT THEY ARE
Addendums are legally binding agreements between the buyer and seller, changing or adding terms to the original contract.
▪️WHY WE NEED THEM
As a title company, it is our job to ensure all terms of the contract have been complied with, and all changes have been made PRIOR to closing. It is exceptionally important to make sure your title company receives a copy of EVERY addendum, the MOMENT it is signed, to ensure a smooth transaction, and to prevent delays, misunderstandings, and potential disputes.
▪️EXAMPLE
John and Jane are finally purchasing their first home, and their closing is set for tomorrow. Their lender needs an updated statement reflecting the new purchase price. **Uh Oh** 😱We never received that addendum. Now we have to wait until it's provided, before we can proceed. This causes delays. John and Jane have to push their closing out another day. To top it off, we also didn't receive the addendum increasing the seller credit. Now the seller is receiving less money than he anticipated, because the statement he originally received did not have this change reflected. Fingers are pointed and the frustrations are high.
As you can see, addendums are IMPORTANT, but an addendum is WORTHLESS, if it is not provided to every party involved in a transaction. Help us, help you. Let us get your clients to the table, ready to sign and without delays! 🖊📑
