Top 5 Changes to the 2022 GAR Contract
Atlanta | CE School | Real Estate |
The beginning of the year comes new goals, new resolutions and in the real estate industry, new changes to the GAR Contract. We just wrapped up our 2022 GAR Contract Changes class roadshow and it was a huge success. We taught five classes over the course of four weeks to nearly 500 students.
Of all of the changes that were made, Bren McLeod, one of our partners and CE class instructors, rounded up the Top 5 Biggest Changes made to the GAR Contract this year.
- GAR forms now universally make clear that a “Notice” sent by electronic email is deemed “delivered” when sent to an appropriate email address specified in the contract “even if the notice is not opened” by the recipient
- GAR Purchase and Sale Agreement has new procedure to resolve disputes involving the Binding Agreement Date. New Section C.4k requires a party who objects to the date entered as the Binding Agreement Date on the contract to send notice of the objection within one (1) day from receiving the notice of Binding Agreement Date. The objection must be resolved by a written amendment to the contract by executing a binding agreement date confirmation, using NEW Form – F733 – “Binding Agreement Date Confirmation Amendment”. The failure of a party to timely object will result in the parties accepting the binding agreement date as entered.
- The GAR Purchase and Sale Agreement created a new “rule” for interpreting the contract, which provides that any amendatory clause in an FHA or VA exhibit (i.e., appraisal contingencies) shall control over inconsistent or conflicting provisions contained in a special stipulation, another exhibit, or the main body of the contract. This means that the parties cannot abridge or waive by contract the rights provided under federal law regarding FHA or VA appraisals.
- GAR created a new Special Stipulation S 611 for the Seller to consent when the Buyer will assign the Purchase and Sale Agreement to another buyer. Why? The Seller’s consent to any assignment is required under Section C.4e of the Purchase and Sale Agreement, which provides that the contract may not be assigned by Buyer except with the written approval of Seller which may be withheld for any reason or no reason.
- The Exclusive Buyer Brokerage Agreement added new commission obligations for the Buyer. New Section A.4 now provides that the Buyer now has a contractual obligation to pay any portion of the agreed upon commission that is not paid by the Seller’s broker of the Seller. The Buyer will also owe the commission if the buyer defaults or if the buyer enters into a Purchase and Sale Agreement during the term of the brokerage agreement and later closes on the Agreement, even after expiration of the broker agreement.
Please consult with your Broker over these important changes!
*For informational purposes only. Not to be relied upon as legal advice. Nothing in this blog should be construed as creating an attorney-client relationship. MMH is not responsible for, does not endorse or accept liability for any externally linked site or its content. MMH does not give any representation regarding the safety, reliability or accuracy of the content or materials contained on any external website.