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New Real Estate Contracts for North Georgia in 2008
By Karin Elliott | January 30, 2008
The 2008 GAR (Georgia Association of Realtors) Forms are out, and there were some big changes in the Purchase and Sales Contract. These GAR forms are often used in North Georgia real estate transactions, and I have a lot of customers on the verge of buying, so I thought a brief explanation of Buyer’s and Seller’s responsibilities as defined in the new contracts could he helpful.
1. I’ll start off with the greenest tennis ball, Closing Costs: It is now primarily the Buyer’s responsibility to pay closing costs. Most of the costs are incurred through financing for the Buyer anyway. Now and new for 2008 is that the transfer tax is also the Buyer’s responsibility. Yes, there is still some room for negotiation but documentation is now required to specify closing costs and the Sellers contribution will only equal the true amount of closing costs. For example: Seller contributes $2,000 for closing costs and the closing costs are $1,500, the Seller only pays $1,500.
2. Due Diligence VS “As-Is”: Buyers now have 2 approaches to purchasing homes. The first is Due Diligence where the Buyer has a certain amount of time (ex: 2 weeks) to conduct inspections and obtain financing. The Buyer has to notify the Seller in writing of any concerns regarding repairs or has the right to cancel for any reason PRIOR to the expiration date. Once the expiration date passes without any repair requests the home will be sold “as is” to the Buyer. The second approach is “As-Is” where Buyer already has financing and accepts the home without an inspection period. This is a common procedure for foreclosure homes or when the Sellers are unable to contribute to repairs.
3. Buyer’s Agreements- There is a difference between a “client” and a “customer”. The main difference is that with a client you have entered into a contractual relationship and hold in confidence certain information. You represent your client in a sales transaction. Experienced buyers usually don’t need representation, but many buyers prefer to have agent representation. When I sell one of my own listings, I represent the Seller. When I sell someone else’s listing I represent my Buyer. Big Canoe real estate transactions are usually civil as all the agents in Big Canoe know each other and work Big Canoe, but problems can crop up from time to time. However if you prefer to have your Agent represent you throughout your transaction, then have them sign a Buyer’s Agreement.
The remainder of the changes for 2008 are minor but these highlighted points I just mentioned are important to both Buyers and Sellers. Feel free to email me for more information!
*This information is not legal advice. Please contact a real estate attorney for detailed advice regarding these new contracts.
Topics: All Posts, Big Canoe Real Estate, Real Estate Marketing |
January 30th, 2008 at 9:59 pm
I found your site on technorati and read a few of your other posts. Keep up the good work. I just added your RSS feed to my Google News Reader. Looking forward to reading more from you.
Peter Quinn