An Addendum is a fancy name for a form that is basically just a blank sheet of paper. When you think of Addendum, think Add. You can add an addendum to the transaction and make it part of the contract. Addendums are usually used when there is a long list of things that won’t fit into the line or two of writing space on most forms, or for clarity sake to have everything organized on one page.
There are also specialized addendums, such as Wood Destroying Pests Addendum, Backup offer addendum, Time Extension Addendum, Short sale Addendum, REO Advisory- but these tend to operate like their own separate form.