Revisions were made to the Lease to clarify, among other things, who acts as the landlord when a property is managed by a real estate broker. The requirement for a trust account number on trust accounts holding security deposits was also eliminated since the law merely requires disclosure of the bank in which the trust funds are deposited. Finally, certain minor revisions were made to strengthen the rights of landlords and clarify various provisions.
9. REVISED REQUIREMENTS FOR BUYER PROVIDING EVIDENCE OF PROOF OF FUNDS
The GAR Financial Contingency Exhibit (Form F64) was revised to make it easier for the buyer to provide evidence to the seller of proof of funds. The new requirement allows a buyer obtaining mortgage financing to simply provide the seller with a copy of the buyer’s loan commitment. In the revised section, the seller is also cautioned that the buyer obtaining a loan commitment is not a guarantee that the lender will ultimately make the loan or that the loan will close.
The previous version of this section required the buyer to provide the seller with a type of loan commitment that met certain specific standards. The GAR Forms Committee revised this language because it was simply too difficult in today’s mortgage lending environment for buyers to get the type of loan commitment required under the previous provision.
OTHER CHANGES
In addition to the above changes, there were numerous less significant changes made to the GAR Forms. These include creating a new Amendment to Change the Due Diligence Period (Form F109), drafting a new USDA-RD Loan Exhibit (Form F78) (to be used for home loans insured by this entity), revising the “Protect Yourself When Buying a Home Brochure” (Form F13) to add in a reference to methamphetamine and adding a compliance with fair housing laws section to all brokerage engagement agreements.
CONCLUSION
The GAR Forms Committee continues to search for ways to improve our forms to protect the clients and customers with whom we work and protect the interests of REALTORS.
Tom Cowan did a superb job as Chair of the GAR Forms Committee in 2011. In 2012, the Committee will continue its work under new Chair, Jim Jones of Brunswick.
SETH G. WEISSMAN IS GENERAL COUNSEL TO THE GEORGIA ASSOCIATION OF REALTORS. HE IS ALSO AN ADJUNCT PROFESSOR OF CITY PLANNING AT THE GEORGIA INSTITUTE OF TECHNOLOGY.
www.garealtor.com GEORGIA REALTOR I 19
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