Although there are many contracts available for real estate purchase & sale in Georgia, there are two primary contract packages that real estate agents have easy access to initiate an offer: GAR Forms & RE Forms. Last week’s contract tip was on the “Back-Up Contingency Exhibit” from the GAR Contract Forms, this video is on the “Back-Up Contingency Exhibit” from the RE Forms Contract package. Please watch BOTH videos for a complete understanding of how this Contingency works regardless of the specific form.
As a real estate agent, it is most likely in the Buyer & Seller’s best interest to have a Binding Back-Up Contract in place. Watch this video for a full explanation of the Back-Up Contingency Exhibit in the Georgia Association of Realtors (GAR) contract forms – F91. Next Video: Back-Up Contingency Exhibit – RE Forms. Most Recent Video on Notice: https://youtu.be/lsyKGcdrB70
What email address are you using as a Real Estate Agent in your Contract and when conducting business with respect to a contract? Why is it important in Georgia? What do you need to do if the one you use on a regular basis is different from the one on the contract? Watch the video to find out! Please see: Sending Notice – What You Need to Know as an Agent – https://youtu.be/lsyKGcdrB70
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!