Can the addendum be signed electronically?

Yes. Electronic signatures are generally enforceable under the ESIGN Act and UETA, provided the parties demonstrate intent to sign, consent to electronic records, attribution of the signature, and reliable record retention.

Is notarization required for the addendum?

Not usually. Most addenda do not require notarization, but if the addendum modifies a deed or power tied to recording, a notarized acknowledgment may be required depending on state rules.

What if the lender objects to a listed fee?

Coordinate with the lender promptly to revise the line item; lenders can require reissuance of disclosures and hold funding until the discrepancy is resolved.

How are prorations and credits handled after closing?

Post-closing adjustments are governed by the contract terms; parties should follow the contract’s dispute-resolution procedure or escrow holdback provisions if present.

Can a party revoke the addendum after signing?

Revocation or amendment typically requires mutual written agreement unless the contract provides a unilateral termination right; consult the contract and, if necessary, counsel.

How long should signed copies be retained?

Retain signed addenda with the closing file for at least 3 years; for real estate and tax purposes keep them for 7 years and follow HIPAA or other industry rules where applicable.

Electronic Signature
Templates
Legal
Legal Closing Costs Addendum

Legal Closing Costs Addendum

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LEGAL CLOSING COSTS ADDENDUM

This Legal Closing Costs Addendum (the Addendum) is made effective as of by and between Buyer Name: and Seller Name: regarding the Property located at and amending the Purchase Agreement dated .

RECITALS

WHEREAS, Buyer and Seller are parties to a written Purchase Agreement for the sale and purchase of the Property referenced above; and

WHEREAS, the parties desire to modify and clarify the allocation of closing costs, prorations and related expenses to be paid at closing; and

WHEREAS, the parties intend for this Addendum to be incorporated into and to amend the Purchase Agreement to the extent of any conflict between the two documents.

NOW THEREFORE, in consideration of the mutual covenants and promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1. DEFINITIONS

1.1 "Closing" means the closing of the transaction contemplated by the Purchase Agreement, as that term is defined in the Purchase Agreement. 1.2 "Closing Costs" means all fees, charges, taxes and disbursements that are customarily paid at closing in the jurisdiction of the Property, including but not limited to title search and insurance premiums, escrow fees, recording fees, transfer taxes, lender fees, attorney fees expressly charged to either party, prorations for real property taxes and assessments, HOA assessments, and any negotiated seller credits.

2. ALLOCATION OF CLOSING COSTS

Unless otherwise provided below, the parties agree the Closing Costs shall be allocated as follows:

Title and Escrow Fees

Buyer to pay: Seller to pay:

Owner's Title Insurance Premium

Seller to pay: Buyer to pay (if agreed):

Recording and Transfer Taxes

Transfer and recording fees to be paid by:

Loan-Related Charges

Lender fees, appraisal, credit report, and underwriting fees to be paid by:

Homeowner Association and Prorations

Prorations for HOA dues and assessments shall be computed through the date of Closing and shall be paid by:

Other Specific Items

Inspection, survey, municipal certificate and other indicated items to be paid by:

3. SELLER CREDITS AND ADJUSTMENTS

Seller agrees to credit Buyer at Closing the amount of for the purpose of offsetting Buyer closing costs, subject to the following conditions: (a) credit shall be applied to the Buyer side of the Closing statement; (b) credit shall not increase Seller net proceeds beyond agreed contract; and (c) credit is contingent upon Closing occurring on or before .

4. ESTIMATED CLOSING STATEMENT AND PAYMENT

4.1 Escrow Agent or Closing Officer shall prepare a good faith estimated closing statement listing the allocation required by this Addendum not less than days prior to Closing. 4.2 Unless otherwise agreed in writing, all check or wire transfers required to fund Buyer or Seller obligations at Closing shall be delivered in cleared funds as directed by the Escrow Agent.

5. PRORATIONS

Real property taxes, utilities and other recurring charges shall be prorated as of the date of Closing in accordance with customary local practice and the terms of the Purchase Agreement. Any adjustments required after Closing that arise from clerical error or tax authority adjustment shall be resolved between the parties in good faith within 30 days of notice.

6. REPRESENTATIONS AND WARRANTIES

Each party represents and warrants that it has full authority to enter into this Addendum, that the execution and delivery of this Addendum have been duly authorized, and that upon execution this Addendum shall constitute a valid and binding obligation enforceable against such party in accordance with its terms.

7. INDEMNIFICATION

Each party shall indemnify, defend and hold harmless the other party from and against any losses, claims, damages or expenses (including reasonable attorney's fees) arising from that party's failure to pay its allocated Closing Costs or from any breach of the representations and warranties contained herein.

8. DEFAULT AND REMEDIES

In the event a party defaults in its obligations under this Addendum, the non-defaulting party shall be entitled to pursue all remedies available at law or in equity, including specific performance, damages, and recovery of costs, including reasonable attorney's fees incurred to enforce this Addendum.

9. NOTICES

Any notice required or permitted by this Addendum shall be in writing and shall be given to the receiving party at the address set forth below (or such other address as the receiving party shall designate by notice):

Buyer Notice Address Seller Notice Address

10. AMENDMENTS; WAIVER

This Addendum may be amended only by a written instrument signed by both parties. No waiver of any provision of this Addendum shall be effective unless in writing and signed by the party waiving compliance.

11. COUNTERPARTS

This Addendum may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. Facsimile, electronic image or other reproductions of signatures shall be acceptable as original signatures.

12. GOVERNING LAW

This Addendum shall be governed by and construed in accordance with the laws of the state in which the Property is located, without regard to its conflict of laws principles.

13. ENTIRE AGREEMENT; SEVERABILITY

This Addendum, together with the Purchase Agreement and any other documents expressly incorporated herein, constitutes the entire agreement of the parties with respect to the allocation of Closing Costs and supersedes all prior agreements, understandings and negotiations. If any provision of this Addendum is held invalid or unenforceable, such invalidity shall not affect the validity of the remaining provisions, which shall remain in full force and effect.

14. MISCELLANEOUS

The parties agree to cooperate and execute such further documents and take such further actions as may be reasonably necessary to effectuate the purposes of this Addendum.

Additional Terms or Special Instructions

Buyer Name:

By:

Date:

Seller Name:

By:

Date:

What the Legal Closing Costs Addendum Is and When It Applies

The Legal Closing Costs Addendum is an attachment to a real estate purchase agreement that itemizes, allocates, and clarifies which party pays specific closing costs and disbursements at settlement. It typically lists lender fees, title and recording charges, prorations, escrow charges, and any seller concessions or credits, and it becomes part of the contract once executed by the parties. Use this addendum whenever parties need to adjust who pays closing expenses or to record exceptions to standard local custom, ensuring clearer settlement expectations for buyer, seller, lender, and closing agent.

Why a Clear Closing Costs Addendum Matters

A well-drafted addendum reduces post-contract disputes by documenting specific cost allocations and procedural steps at closing. It protects each party’s financial expectations, supports accurate HUD-1/Closing Disclosure figures, and makes lender underwriting and title work more predictable.

Which Parties Commonly Prepare and Sign This Addendum

Typical users include buyers, sellers, listing and buyer agents, escrow officers, and lenders who need to agree on final cost allocation before closing.

Buyers and buyer agents coordinating loan-related fees, prorations, and credits with lender and seller.
Sellers and listing agents documenting seller-paid concessions, title and transfer fees, and payoff handling.
Escrow/closing officers and title companies verifying itemized charges and preparing the final Closing Disclosure or settlement statement.

Accurate completion helps all parties reconcile closing statements and reduces the risk of contested charges after settlement.

Step-by-step: Completing the Legal Closing Costs Addendum

Follow these sequential steps to ensure the addendum is complete, consistent with the purchase contract, and ready for signatures.

01

Review the contract: Confirm the purchase agreement’s baseline cost allocation to avoid conflicts.
02

Itemize charges: List each closing cost type and the dollar amount or allocation method.
03

Confirm lender needs: Coordinate with the lender to include required loan-related fees and prepaid items.
04

Sign and attach: Obtain signatures from all parties and attach the addendum to the main agreement.

How to set up an online workflow for this addendum

Configure a digital signing workflow that matches your local closing steps and lender requirements.

Field	Configuration
Upload Document	PDF or DOCX accepted; convert to final PDF for signatures
Signer Order	Set sequential order: Buyer → Seller → Lender/Closing Agent
Authentication	Choose email link or SMS code; strengthen with ID check if required
Audit Trail	Enable full event logging (IP, timestamp, actions)

Digital signing and platform requirements

Ensure the eSignature platform supports lender, title company, and notary requirements for closing documents.

File formats: Must support PDF/A and Word DOCX for text edits and final signed PDF output.
Integrations: Should integrate with closing and CRM systems like Salesforce, NetSuite, or title production tools.
Security & compliance: Encryption in transit and at rest, and support for HIPAA or 21 CFR Part 11 when required.

Confirm platform authentication levels, audit trail granularity, and export formats with your title company and lender before eSigning.

Where to send and how the addendum is routed

Typical routing clarifies who receives the executed addendum and where final copies are stored.

Closing Agent: Deliver the executed addendum to the title or escrow officer preparing the Closing Disclosure.
Lender: Provide lender-signed copies for loan underwriting and final funding conditions.
Buyer/Seller: Each party retains a signed copy for closing and tax records.
Recording Office: If required, the deed and related documents go to county recorder; addendum usually kept with closing file.

Key timing and deadline considerations

Watch for lender timelines, delivery of Closing Disclosure, and recording deadlines that affect when funds and documents must be ready.

Closing Disclosure delivery:

Provide at least three business days before closing per TILA-RESPA rules

Loan conditions:

Fulfill lender conditions by the funding cutoff to avoid delays

Recording turnaround:

County recording times vary and can affect deed-based contingencies

Proration cutoff:

Use the agreed contract date for prorations unless otherwise stated

Post-closing adjustments:

Address within the timeframe specified in the contract or state law

Milestones from contract to final recording

A sequential view of critical milestones helps coordinate the addendum with underwriting, title, and closing.

01

Contract Acceptance

Addendum must reflect agreed changes before financing contingency expiration.

02

Lender Approval

Include lender-required fees and credits to avoid re-issuance of disclosures.

03

Final Document Review

Title and escrow reconcile figures and prepare Closing Disclosure.

04

Funding and Recording

Funds wired, deeds recorded, and executed addendum retained in closing file.

Common preparation errors to avoid

Leaving item amounts blank or vague, which causes disputes at settlement.
Using inconsistent names or addresses compared to deed or loan documents.
Failing to coordinate with the lender, resulting in incorrect Closing Disclosure figures.
Not obtaining all required signatures or dates, leaving the addendum unenforceable.

Consequences of an incorrect or incomplete addendum

Lender delays: Funding may be postponed

Title issues: Title insurance exceptions or delays

Financial disputes: Post-closing chargebacks or litigation

Recording problems: Incorrect deed handling or re-recording

Tax reporting: Incorrect 1099-S or transfer tax filings

Contract breach: Potential contract remedies or damages

eSignature vendor comparison for signing and managing the addendum

Key plan features and starting prices for common eSignature vendors. signNow is listed first as a platform option; costs and feature availability vary by plan.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	No trial listed	No trial listed	Yes, limited	Yes, limited
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Practical tips for accurate and efficient completion

Apply these best practices to reduce errors, speed review cycles, and satisfy lender and title requirements.

Coordinate early

Confirm lender and title fee items before drafting to avoid re-issuing the addendum.

Use precise amounts

Avoid estimates unless marked as provisional; replace with final figures before closing.

Standardize names

Match party names to deed and loan documents to prevent funding delays.

Preserve audit trail

Use an eSignature platform that records timestamps, IP, and signer authentication events.

Frequently asked questions about the addendum

Answers to common execution, validity, and post-closing questions for the Legal Closing Costs Addendum.

Need help? Contact support

Can the addendum be signed electronically?
Yes. Electronic signatures are generally enforceable under the ESIGN Act and UETA, provided the parties demonstrate intent to sign, consent to electronic records, attribution of the signature, and reliable record retention.
Is notarization required for the addendum?
Not usually. Most addenda do not require notarization, but if the addendum modifies a deed or power tied to recording, a notarized acknowledgment may be required depending on state rules.
What if the lender objects to a listed fee?
Coordinate with the lender promptly to revise the line item; lenders can require reissuance of disclosures and hold funding until the discrepancy is resolved.
How are prorations and credits handled after closing?
Post-closing adjustments are governed by the contract terms; parties should follow the contract’s dispute-resolution procedure or escrow holdback provisions if present.
Can a party revoke the addendum after signing?
Revocation or amendment typically requires mutual written agreement unless the contract provides a unilateral termination right; consult the contract and, if necessary, counsel.
How long should signed copies be retained?
Retain signed addenda with the closing file for at least 3 years; for real estate and tax purposes keep them for 7 years and follow HIPAA or other industry rules where applicable.

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