Forms two one for PART I: UNILATERAL NOTICE TO
TERMINATE PURCHASE AND SALE The first form, the Unilateral Notice to Terminate
Purchase and Sale, is how the buyer or seller gives NOTICE to terminate the contract. However, the buyer or seller can only give notice to terminate if they have a legal right to do so. Only one party needs to sign the notice. A buyer may have the right to terminate if A)
they have a Due Diligence period; B) they have a contingency, like finance, that allows them to ter- minate; C) the Seller defaults; or D) other lawful reason. A seller may have the right to terminate if A) they
have a contingency, like Short Sale, that allows them to terminate; B) the buyer defaults; or C) other lawful reason. Notice to Terminate to be effective must be given
in a proper and timely manner. To be proper, notice must be in writing, signed by the party giving no- tice, and delivered in one of the five manners of delivery (hand, overnight, mail, fax, email) provided for in the Purchase and Sale Agreement. To be timely it must be received by the other
party, or the agent representing them, prior to any deadline based upon time in Georgia.
FORMS FOCUS,WRITTEN BY GREG DUNN, REALTOR® REALTOR®
F83 the Unilateral Notice to Terminate Purchase
and Sale Agreement and Proposed Disbursement of Earnest Money
contains two different forms which are both on the same page.
PART II : PROPOSED DISBURSEMENT OF EARNEST MONEY The second form, the Proposed Disbursement of
Earnest Money, is a way for the buyer and seller to agree to a disbursement of any Earnest Money. GREC Rule 520-1-.08(3)(b) indicates that the holder of earnest money has properly fulfiled their duty if they secure a written agreement signed by all parties who have an interest in the trust funds, which is separate from the contract. Both buyer and seller must sign this form. We would expect the party, giving notice to ter-
minate, to propose a disbursement of the earnest money. The buyer and seller would then negotiate over the disbursal until they reach agreement. Remember, this money originally belonged to the buyer and should go back to the buyer unless there was a default on the part of the buyer. The earnest money could go to the buyer, the seller or a third party (maybe a charity). Buyers and sellers who are not getting the money are often reluctant to sign the form. Skillful agents have practiced lan- guage that encourages them to sign the form. The agreement only becomes effective upon being signed by buyer and seller and a fully executed copy being delivered to buyer, seller, and holder.
EMERITUS, IS A NEW COLUMN THAT WILL APPEAR IN EACH ISSUE OFGEORGIA
MAGAZINE, EXCEPT FOR JANUARY/FEBRUARY, WHEN A LARGER ARTICLE ON REVISIONS APPEARS IN ITS PLACE. THE MISSION OF FORMS FOCUS IS TO HELP MEMBERS BETTER UNDERSTAND OUR FORMS. A DIFFERENT FORM WILL BE HIGHLIGHTED IN EACH ISSUE.
28IGEORGIA REALTOR® NOVEMBER I DECEMBER 2014
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