Legal Ease
NEW & IMPROVED FOR THE NEW YEAR
REVIEWING CHANGES TO THE 2013 GEORGIA REALTORS PURCHASE & SALE AGREEMENT
SIGNIFICANT STEPS WERE TAKEN BY THE GAR FORMS COMMITTEE TO MAKE THE 2013 GAR PURCHASE AND SALE AGREEMENT (“GAR CONTRACT”) SHORTER AND EASIER TO READ, UNDERSTAND AND FILL OUT. THIS ARTICLE WILL EXPLAIN THE CHANGES IN BULLET POINT FASHION BELOW:
(1 ) GAR CONTRACT SHORTENED
The GAR Contract was shortened by almost a page to make it more user-friendly. When it comes to form real estate contracts, the fact that the contract is shorter does not always mean that the contract is better, particularly if important issues go unaddressed in the contract. In the 2013 GAR Contract, care was taken to address the same important provisions in the contract as before, but to do so more concisely.
(2) ALL BLANKS IN THE GAR CONTRACT ARE NOW ON THE FIRST PAGE
The 2013 GAR Contract was re-formatted so that every blank in the contract that needs to be filled in is now found on the first page of the contract. This should be a very positive change for REALTORS and others using the GAR Forms because they will no longer have to search through the contract to ensure that all blanks have been filled in. Instead, if they fill in the first page of the 2013 GAR Purchase and Sale Agreement, they are essentially done with the preparation of the contract other than to identify exhibits that go with the contract and get it signed by the parties. The remainder of the contract then is the standard boilerplate.
(3) BUYERS AND SELLERS NAMES IN THE CONTRACT
For the first time ever, the 2013 Purchase and Sale Agreement now includes a blank to be filled in on the first page of the contract with the names of the buyers and sellers. Paragraph 16(k) of the GAR Contract then provides that there is no Binding Agreement if all buyers and sellers listed in the Agreement have not signed it. This change was made to avoid the problem of a party to a contract claiming that an enforceable contract exists when less than all of the buyers or sellers, as the case may be, have signed the contract. So, for example, let’s say that a buyer makes an offer to purchase the house of a divorcing couple. The wife signs the contract and returns it to the buyer but the husband does not. The buyer ends up with a copy of a partially completed contract and claims he or she has an enforceable contract against the wife and that the wife is in breach of contract. Under the new 2013 GAR Contract, such an argument would lack merit so long as both sellers are listed on the first page of the contract.
While this change solves one problem, it creates another in that it will require selling agents to obtain the name of the sellers from the listing broker when making an offer. Alternatively, the listing broker may want to include this information in the multiple listing service.
12 I GEORGIA REALTOR JANUARY I FEBRUARY 2013
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