Contracts

What is an 'amendment' versus a 'modification' to a Pennsylvania real estate contract?

AThey are legally identical terms
BAn amendment changes the contract after both parties have signed; a modification typically refers to changes during initial negotiation before final agreement✓ Correct
CAmendments are formal court orders; modifications are informal agreement changes
DAmendments apply to commercial contracts; modifications to residential

Explanation

In Pennsylvania real estate practice, an amendment is a written document executed by both parties after the original contract is signed, making agreed-upon changes to specific contract terms (extending the closing date, reducing the purchase price after inspection, modifying contingencies). Unlike an addendum (added at the time of original signing), an amendment modifies an existing, already-executed contract. All amendments must be in writing, signed by both parties, and reference the original contract.

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