“Seller shall: (1) immediately notify Buyer if the Property becomes subject to a condemnation proceeding; and (2) provide Buyer with the details of the same. Upon receipt of such notice, Buyer shall have the right, but not the obligation for 7 days thereafter, to terminate this Agreement upon notice to Seller in which event Buyer shall be entitled to a refund of all earnest money and other monies paid by Buyer toward the Property with- out deduction or penalty. If Buyer does not terminate the Agreement within this time frame, Buyer agrees to accept the Property less any portion taken by the condemnation and if Buyer closes, Buyer shall be entitled to receive any condemna- tion award or negotiated payment for all or a portion of the Property transferred or conveyed in lieu of condemnation.”


As the economy strengthens, we are increasingly see-


ing issues where properties under contract became sub- ject to a condemnation action. This section protects the buyer by giving the buyer the right to terminate the con- tract if, prior to closing, a portion of the property becomes subject to a condemnation proceeding. If the buyer elects not to terminate the contract, the buyer is then entitled to the proceeds from the property which is condemned.


CHANGES TO THE SELLER’S PROPERTY DISCLOSURE FORM


Several small changes were made to the Seller’s Prop-


erty Disclosure Statement. First, the questions relating to the age of HVAC systems serving the property was restored to the Seller’s Property Disclosure Statement upon the request of numerous REALTORS®


. Second, a question regarding the expiration and re-


newal dates of termite bonds, warranties or termite service contracts was added to the contract. Third, a question was added (in section 12) regarding


whether the property is subject to a threatened or pending condemnation action. Fourth, the questions relating to plumbing leaks and


water intrusion were broadened to also inquire about damage occurring to these things.


Fifth, the question whether there were additions,


structural changes, or other major alterations to the orig- inal improvements was expanded to include the “Prop- erty, including without limitation, pools, carports or storage buildings?” Finally, several blanks were added to the Fixtures Checklist to allow the seller to identify cer- tain unique items that either remain or do not remain with the property.


CHANGES TO THE


COMMUNITY ASSOCIATION DISCLOSURE STATEMENT


One of the more significant changes to the GAR Forms


was to the Community Association Disclosure. Specifi- cally, the following bold-face language was added to this form:


“IN THE EVENT SELLER FAILS TO DISCLOSE HEREIN THE FULL AMOUNT OF ANY FEES, AS- SESSMENTS OR CHARGES DUE AND PAYABLE TO THE COMMUNITY ASSOCIATION OR ITS MANAGEMENT AGENT ON OR BEFORE THE CLOSING, SELLER SHALL BE RESPONSIBLE FOR PAYING SUCH UNDISCLOSED FEES, AS- SESSMENTS AND CHARGES AT THE CLOSING.”


This language was added to try to address increas-


ing problem of buyers learning at the closing table of initiation fees, charges and assessments and fighting with sellers over who pays these amounts. The GAR Forms Committee decided that since many community associations will not communicate directly with buyers (since they are not yet the owners of the property) it made sense to shift the burden to the seller of getting accurate information regarding monies to be paid at closing (and making the seller responsible for paying any amounts at closing not disclosed to the buyer). In conclusion, the GAR Forms Committee continues


to work to improve the GAR Forms to solve problems in real estate transactions and protect REALTORS®


.


SETH G. WEISSMAN IS GAR’S GENERAL COUNSEL, A PARTNER AT WEISSMAN, P.C., AND A PROFESSOR OF THE PRACTICE OF CITY PLANNING IN THE COLLEGE OF ARCHITECTURE AT GEORGIA TECH.


www.garealtor.com


GEORGIA REALTOR®


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