The Georgia Association of REALTORS (GAR) has released their midyear revisions to the GAR Contract Package. This video covers the 2023 Midyear Changes / Revisions to the Purchase & Sale Agreement. Stay tuned for TWO more videos continuing in the series of Midyear Changes to the GAR Contract Package. The following is a synopsis of the latest episode of “Real Estate Made Crystal Clear” with our very own Dana Sparks. You can watch the video in its entirety below.
In this blog post, we will delve into the revisions made by the Georgia Association of Realtors (GAR) to their contract package. GAR releases a new contract package every January, followed by mid-year revisions primarily focused on syntax errors, grammatical corrections, and clarifications. However, occasionally, they introduce important conceptual changes. The revisions we will discuss were released on June 1st, 2023.
Revisions to 20 Forms
GAR made revisions to a total of 20 forms in their contract package. While we have covered the changes in the Purchase & Sale Agreements and Brokerage Agreements in separate videos, there are several other forms worth exploring. In this blog post, we will focus on the Termination Unilateral TNR, Temporary Occupancy Agreement for Seller After Showing, VA Loan Contingency Exhibit, and forms related to the attorney as the holder of earnest money.
Temporary Occupancy Agreement for Seller After Closing
Let’s start by discussing the changes made to the Temporary Occupancy Agreement for Seller After Closing. GAR added a new phrase in paragraph 11, stating that if a seller fails to vacate the property within the agreed-upon timeframe after closing, they will be liable to the buyer for financial damages, including actual attorneys’ fees. This addition clarifies the legal and financial ramifications for sellers who become holdover tenants or tenants at sufferance.
Unilateral Termination & Release
The Unilateral TNR (Termination and Release) form, also known as form f522, underwent a significant improvement. Previously, it created confusion as it had signature lines for both the seller and the buyer. However, with the latest revision, GAR has simplified this form by removing the specific buyer and seller signature lines. Now, it only requires the signature of the party giving notice, making it clear that a unilateral notice can be validly executed with just one party’s signature. This change eliminates the ambiguity that previously surrounded the termination process.
VA Loan Contingency Exhibit
The VA Loan Contingency Exhibit, labeled as form f410, did not undergo significant changes in the June 2023 revisions. The revisions made in January still stand, emphasizing that a termite letter may be paid for by either the buyer or the seller. However, the latest revision introduced a clarification stating that if any re-inspection or updated termite letter is required due to seller-corrected infestation, the fee for these services will be the responsibility of the seller, in addition to any contribution the seller makes toward the buyer’s closing costs.
Forms Related to Closing Attorney as Holder of Earnest Money
When the buyer and seller agree to have the closing attorney hold the earnest money, two forms are required. Form f510 serves as an exhibit to the contract and allows the parties to identify the closing attorney responsible for holding the earnest money. In the June 2023 revisions, GAR changed the time frame within which the closing attorney must agree to fulfill their responsibilities. Previously set at three business days, it has now been extended to five business days.
The second form, f511, titled “Agreement of Closing Attorney to Serve as Holder of Earnest Money Escrow Agreement,” is signed by the closing attorney alone and does not require signatures from the buyer or seller. In the recent revisions, GAR modified paragraph two to reflect the updated time frame of five business days for the closing attorney to sign the agreement and become the holder of the earnest money. Failure to meet this deadline will result in the alternate holder named in form f510 becoming the holder.
In conclusion, we discussed the revisions made by the Georgia Association of Realtors (GAR) to their contract package. While the mid-year revisions primarily focused on syntax and clarity, some crucial changes were introduced. We explored the changes made to the Temporary Occupancy Agreement, Unilateral TNR form, VA Loan Contingency Exhibit, and forms related to the attorney as the holder of earnest money. GAR’s commitment to clarifying contract language and improving the overall contract package ensures a more transparent and efficient real estate transaction process.
Watch the entire video for more information here:
