What is a contract rider? Is it different than an addendum?

Explore the similarities and differences between a contract rider and an addendum, learn which to use, and how to get them signed electronically.

Contract riders and addendum are similar documents most often used in real estate, insurance, or law making — however, there are slight yet important differences between them that determine how and when they should be used.

What is a contract rider?

A rider is a document that addresses additional details, conditions, or terms of a contract. For example, in real estate, an attorney may draft a contract rider to supplement a standard Purchase and Sale Agreement. In this case, the rider may outline details such as:

• Where and how a down payment is held
• The date the property will be vacated by the seller
• Property inspections the seller must pay for

Buyers and sellers may negotiate contract rider terms and both parties sign the document.

What is a contract addendum?

Like riders, contract addenda are also an addition to a standard contract. An addendum can be used to change, add to, or update the information found in the original contract. They’re usually dated and signed, and refer back to specific parts of the contract.

In some cases, contract riders and addenda may be used interchangeably but it’s recommended that you discuss with your attorney which one might be best to use.

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If you’re making frequent changes to a contract, it’s important to keep track of each update. With Acrobat Sign, attorneys, buyers, sellers, and other professionals can seamlessly create contracts that are ready to share and legally sign.

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