Contracts
In Michigan, an 'addendum' to a purchase agreement:
AReplaces the original agreement entirely
BAdds additional terms that are incorporated into and made part of the original contract✓ Correct
CIs only valid if witnessed by a notary
DExtends the closing date automatically by 30 days
Explanation
An addendum is an attachment to the original contract that adds, clarifies, or modifies specific terms. It is incorporated by reference into the original agreement and must be signed by all parties to be binding.
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Key Terms to Know
Purchase Agreement
A legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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