What is the difference between an addendum and a rider?

In General Area - Asked by Edward W. - Jun 28, 2010
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Answer(s)

Gene G.
Broker/Agent
Houston, TX

Good question. I checked Blacks Law Dictionary and i think the two are slightly different.
The amendment is the actual change to the contract or document; the rider is the "schedule or small piece of paper reflecting an amendment, addition, or endorsement annexed to some part of a contract..."
The confusion comes, i believe, in use within industry. Lawyers use the word amendment for the change and the document reflecting the change in the original agreement. Insurance people use rider to reflect a change in the policy, i.e. insurance contract.
Maybe a little clearer?

Jun 28, 2010
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Chris C.
Broker/Agent
Vero Beach, FL

A rider is an industry 'slang' term indicating an addendum.

Jun 28, 2010
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Eric G.
Broker/Agent
Lake Oswego, OR

I agree with the above answer that it's likely industry parlance. I believe they are the same thing, and serve the same purpose. I have seen Rider and Addendum used is commercial leases. My definition would be Rider and Addendum are used for the same purpose to add terms to the agreement, especially is using an agreement that couldn't be changed within the body of the agreement becuase someone wanted to keep the agreement standardized. However, the Amendment would be to change the terms of an existing agreement, just to be sure Addendum and Amendment aren't getting confused.

Jun 28, 2010
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Kristina H.
Broker/Agent
Greer, SC

According to the dictionary of Real Estate Terms they are both an attachment to a contract! Example an addendum to a contract of sale described the type of financing that the buyer must secure to be required to purchase the property.

Jun 28, 2010
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Edward W.
Broker/Agent
Newark, DE

Thank you all!

Apr 13, 2016
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