Which of the following is TRUE about the addendum in a real estate contract?

The assertion that an addendum must be signed to be valid is accurate. In real estate contracts, an addendum serves as an addition or modification to the original agreement. For an addendum to be considered legally binding and enforceable, it typically requires the signatures of all parties involved in the original contract. This ensures that everyone agrees to the new terms or changes outlined in the addendum and that there is mutual consent.

Without the necessary signatures, the addendum may not hold legal weight, leaving the original contract unchanged and unchanged obligations intact. This concept reinforces the principle that all contractual modifications need to be agreed upon by all parties to safeguard their rights and obligations.

The other statements focus on the characteristics and flexibility of addenda in real estate transactions. While an addendum complements the original contract, it does not override it entirely. It can also modify key details such as closing dates or other important terms, thereby demonstrating that its nature is not strictly optional if modifications are needed.