Each year our Georgia Association of Realtors (GAR) works very hard to update the GAR Forms that most major Brokerage firms use. The annual release of new or updated forms always has an impact on the Brokers' clients, whether Buyers or Sellers. Below you will find some of the more significant changes and the impact that they may have.
Community Association Disclosure (CAD or HOA Exhibit)
In years past many agents have overlooked this as an essential element of the contract, leaving it out, or in many cases allowing for the Seller client to fill it out without attention to detail. In the past the consequences were nominal and rarely caused a problem.
However the changes in the (2017 CAD or HOA Exhibit) now carry a potentially large penalty. The form sates that:
IN THE EVENT SELLER FAILS TO DISCLOSE HEREIN (AND AS OF THE BINDING AGREEMENT DATE) THE FULL AMOUNT OF ANY FEES, ASSESSMENTS 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, ASSESSMENTS AND CHARGES AT THE CLOSING.
This includes HOA annual fees, initiation fees, account set up fees and other fees and assessments. The total of these in some cases could surpass a couple thousand dollars. (Don’t let your agent or Broker overlook this)
Seller’s Responsibility to Disclose
A big change this year is associated with the Sellers responsibility for disclosing latent or hidden defects, even when the property is being sold “AS IS”.
Even if the Property is sold “as-is” Seller is required under Georgia law to disclose to the Buyer latent or hidden defects in the Property which Seller is aware and which could not have been discovered by the Buyer upon a reasonable inspection of the property.
An oversight by the Seller could result in damages to the Buyer. (Don’t let your agent or Broker overlook this)
Limited Warranty Deed Instead of General
This is a major benefit for Sellers. The old language required the Seller to convey title via General Warranty Deed. This meant the Seller was warranting the title against all defects, including those that may have occurred before the Seller owned the property.
Warranty: Seller warrants that at the time of closing Seller will convey good and marketable title to said Property by limited warranty deed…..
The 2017 GAR forms provide for the Seller to convey title via a Limited Warranty Deed. This limits the Sellers warranty to just the time that the Seller has owned the property. (Your agent or Broker cannot mess this up)
Van Purser is a licensed Real Estate Broker in Georgia. Since 1981 Van has successfully represented hundreds of clients. Van was an Associate Broker with RE/Max for 13 years and an agent with Metro Brokers for 3 years, prior to starting his own firm in 2008. He and his wife Jeanne, who is also a licensed Broker, have been happily married since 1977. They have been residents in the Tri-Community area of Roswell, Johns Creek and Alpharetta since 1996. Additionally Van has purchased and renovated over 400 homes since 1981. For follow up on this article you may email Van at VanPurser@VanPurser.com or call him at 770-623-3313.
Van Purser and his wife Jeanne are a licensed Real Estate Brokers in Georgia. Since1984 they successfully purchased and renovated over 400 homes. Their expertise is in representing Buyers or Sellers as an advocate; which means always ensuring their best interest. Additionally, they represented hundreds of clients over the years as an Associate Broker with Metro Brokers, RE/Max and now with his own firm. He and his wife, Jeanne, have been married since 1977. Van or Jeanne can be reached at 770-623-3313, or by email at email@example.com or firstname.lastname@example.org.
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