In a real estate market where the Buyer demand is higher than the Seller inventory, it creates competition among the Buyers vying for a contract to purchase a property. Watch this video for a variety of strategies that you, as a Buyer’s Agent, may use to help the Buyer win that contract on a house in a multiple offer situation.
Please watch Part 1 – “Is a Buyer’s Earnest Money Safe If He / She Terminates on a Financing Contingency?” .
When a Buyer terminates a Purchase & Sale Agreement based on not meeting the Financing Contingency Exhibit, is the Buyer’s Earnest Money safe? Well….. it depends! Which contract form were the parties Binding Under – GAR or RE Forms? Did the Buyer Send the Loan Denial Letter from the Lender? WHEN did the Buyer send the Loan Denial Letter? What Lender was the Loan Denial letter from? What was the reason that the loan was denied? What were the terms of the loan that was denied? These are ALL factors which must be addressed in order to determine if a Buyer actually meets or does not meet the Financing Contingency in a Purchase & Sale Agreement for real property in Georgia.
Is a Buyer’s Earnest Money SAFE if they terminate on a Financing Contingency….. only “MAYBE!” When a Buyer terminates a contract based on the financing contingency, that Buyer must also provide a Loan Denial Letter from the lender. That Buyer will NOT meet the terms of the financing contingency if that loan denial letter is based on certain issues. Watch the video to find out what those issues are! Special Stipulation making a contract subject to a Buyer’s receipt of Down Payment Assistance (DPA) Funds: (Thank you Amee Davis – closing attorney with Davis & Associates – ADavis@DavisLawGA.com “This Agreement is contingent upon the Buyer’s approval for the receipt of down payment from _______ program within _____ days from Binding Agreement Date. Should Buyer not be approved for the DPA program within this time frame, Buyer may terminate without penalty if Buyer notifies Seller in writing and providing DPA denial letter.”
In a real estate contract, when one party sends “Notice” to the other or must notify the other party of something pertaining to the contract, there are specific forms that must be used AND signed by the Buyer(s) or Seller(s.) One agent simply emailing the other agent does NOT satisfy the terms of contractual “Notice.” Additionally, the parties must send that notice to the email, fax or physical address that is included ON the contract (or subsequently provided) in order to satisfy the terms of contract notice. Watch the video for a ton more information on Notice in both the GAR & RE Forms!
As a real estate agent why do I have to tell my Broker about any of my personal deals – especially if I am not taking a commission? My personal matters are none of their business – Hmmm??? On the contrary, EVERYTHING you do with respect to Real Property IS your Broker’s Business – personal & investment. Watch the video for reference to the various License Laws governing “Agent as Principal.”