© 2008 by south-western, cengage learning chapter 9 chapter 9 charles j. jacobus thomas e. gillett
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© 2008 by South-Western, Cengage Learning
Georgia Real EstateGeorgia Real EstateAn Introduction to the ProfessionAn Introduction to the Profession
Seventh EditionSeventh Edition
Chapter 9Chapter 9
Real Estate Sales ContractsReal Estate Sales Contracts
© 2008 by South-Western, Cengage Learning
Commits the parties to the terms.
Allows time for the parties to perform.
Purpose of Sales ContractsPurpose of Sales Contracts
© 2008 by South-Western, Cengage Learning
GAR Form F20GAR Form F20
1. Purchase and Sale1. Purchase and Sale
Buyer agrees to buy, Seller agrees to sell
Legal description
2. Purchase Price2. Purchase Price
Written like a check
© 2008 by South-Western, Cengage Learning
Moving Day
GAR Form F20GAR Form F20
3. Amount & Deposit of Earnest Money3. Amount & Deposit of Earnest Money
Holder designatedHolder designated
5 Banking days from binding agreement5 Banking days from binding agreement
Allows interest bearing accountAllows interest bearing account
4. Date of Closing and4. Date of Closing and
Transfer of PossessionTransfer of Possession
Unilateral extensionUnilateral extension
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GAR Form F20GAR Form F20
5. Sellers Contribution At Closing5. Sellers Contribution At Closing
6. Method of Payment6. Method of Payment
Financing Contingency PeriodFinancing Contingency Period
7. 7. Closing AttorneyClosing Attorney
8. Seller’s Property Disclosure8. Seller’s Property Disclosure
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GAR Form F20GAR Form F20
9. Inspection9. Inspection
10. Property Sold with…10. Property Sold with…
Right to Request RepairsRight to Request Repairs
Subject to Due Diligent PeriodSubject to Due Diligent Period
““As-Is”As-Is”
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GAR Form F20GAR Form F20
11. Waiver of Certain Rights Regarding Lead Based Paint
12. Warranty
13. Taxes and Prorations
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GAR Form F20GAR Form F20
14. Risk of Damage to Property14. Risk of Damage to Property
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GAR Form F20GAR Form F20
15. Entitlement to and Disbursement of 15. Entitlement to and Disbursement of Earnest MoneyEarnest Moneywithdrawal of an offerwithdrawal of an offer
rejection of an offerrejection of an offer
closing of the contractclosing of the contract
separate written agreement separate written agreement
court ordercourt order
interpleaderinterpleader
reasonable interpretationreasonable interpretation
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GAR Form F20GAR Form F20
16. Agency and Brokerage• working with vs. working for• compensation
17. Disclaimer
18. Notices• in writing• methods of delivery
© 2008 by South-Western, Cengage Learning
GAR Form F20GAR Form F20
19. Other Provisions Transfer of warranties Repairs “workman like manner” Entire Agreement Survival Clause Georgia Law Time is of the essence Terminology Binding Agreement Date All parties cooperate Limit of liability to GAR
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Federal ClausesFederal Clauses
Amendatory LanguageFHA & VA
Insulation Disclosures
Lead Based Paint Disclosure“Protect Your Family from Lead in Your Home”
10 day inspection period
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ContractsContracts
Preprinted Clauses Addendums & Special Stipulations
Riders
Negotiation
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Letter of IntentLetter of Intent
Expresses mutual intention to buy, sell, lease, develop, or invest
Outlines terms
No obligation created
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Practicing LawPracticing Law
The real estate agent determines the business details of the transaction – Do not practice law!
A real estate license is not a license to practice law.
© 2008 by South-Western, Cengage Learning
Other types of ContractsOther types of Contracts
Installment ContractsDeed is not delivered at closing
Vendee & vendor
Assured future interest in legal title.
Title held by the party with the deed.
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Deed vs. Installment ContractDeed vs. Installment Contract
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Other types of ContractsOther types of Contracts
Option ContractsUnilateral
Buyer has the right not the obligation to buy
Seller must sell
Payment made to Seller
© 2008 by South-Western, Cengage Learning
Other types of ContractsOther types of Contracts
Lease-OptionBuyer has right to buy at preset term
Option fee must make economic sense
Right of First RefusalCommon to a lease
Valid offer from a purchaser
© 2008 by South-Western, Cengage Learning
Esign ActEsign Act
Effective as of March 1, 2001
Authorizes electronic agreements
Allows for electronic signatures
State may supercede this legislation
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