2022 Mid-year GAR Contract Changes

Atlanta | Real Estate |

GAR Form contract changes occur every year in January and typically again in May.  Last month, several changes came out and our attorney, Dal Burton, Jr., broke them down for us below.  The full list of changes is attached at the bottom of this article.

Purchase & Sale Agreement

  • B(3)(a) Seller’s contribution at closing
    • Previously, this section had only required that Seller’s Monetary Contribution could cover any cost or expense of Buyer related to the transaction
    • Now, this section specifically provides that the Seller’s Monetary Contribution may be used by the buyer to pay any  commission obligations of the Buyer

FHA Loan Contingency Exhibit

  • Amendatory clause: this section now includes a statement that the amendatory clause applies even when the financing contingency period has terminated
  • Prior to  the changes, it was not specifically stated that said amendatory clause would apply when the financing contingency period had expired.
  • Only applies to FHA loans

VA Loan Contingency Exhibit

  • Amendatory clause: this section now includes a statement that the amendatory clause applies even when the financing contingency period has terminated
  • Prior to  the changes, it was not specifically stated that said amendatory clause would apply when the financing contingency period had expired.
  • Only applies to VA loans

Mutual Termination of Brokerage Engagement Agreement

  • Prior to the change, there was an  option in section 3 that read “The Protected Period under the Brokerage Engagement Agreement shall expressly survive the termination of the Brokerage Engagement.”
  • Now, this option is taken out and the net result is that the Protected Period does not survive the mutual termination of the Engagement Agreement.
  • Only applies to Mutual Terminations

Special Stipulations:  SS110 – No Commission Owed by the Buyer

  • This is a new special stip.
  • Unless otherwise provided for in a separate special stipulation, the Broker shall look for the buyer to pay any portion of the Broker’s Commission, subject to the Exclusive Brokerage Engagement Agreement.
  • This can be used to expressly state that the Broker’s commission will be paid by the seller, not the buyer.

Attachment: 2022 GAR Forms Revisions Package Changes

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