A buyer made an offer on a property and the seller accepted the offer. A week later, the seller asked the licensee to amend the contract's provision for closing from 60 days to 90 days. The licensee completed the amendment and all parties initialed the change. The buyer now asks if the seller would agree to split the cost of any needed repairs found during the home inspection. Which of the following should be prepared to include this provision?

• A. An amendment
• B. An addendum
• C. A rider
• D. A purchase agreement

Answer: (B)

The key idea here is how to add a new term to an already-formed contract without changing what’s already there. To include a brand-new provision—like the seller agreeing to split the cost of repairs found during the home inspection—you use an addendum. An addendum attaches to the existing purchase agreement and lays out the extra terms, becoming part of the contract once all parties sign.

An amendment would be used to modify something that’s already in the contract, such as a change to the closing date. Since the request concerns adding a new condition rather than altering an existing term, an addendum fits best. A rider is another attachment option, but it’s not the standard choice for adding a general new term about repairs in this context. Creating a new purchase agreement would duplicate the contract rather than add to it and could create conflicts between documents.