Everything About the Contract

What You Need To Know About the Purchase and Sale Agreement

We know, this is boring and not what you want to review. But, you are signing this contract. Georgia is a Buyer Beware state so it is your responsibility to be sure that you don’t miss any deadlines AND more importantly, to know your rights within the contract. Of course, just ask us if you have any questions!

This is a Sample Purchase and Sale Agreement.

Legal Description: The Closing Attorney will check to make sure that the property can be titled for your purchase. They will be looking for liens, easements and other things that you need to know.

Purchase Price: We will make a recommendation on what you should offer. According to the First Multiple Listing Service, homes are selling at 98.9% of the list price. IF the home is receiving multiple offers, it could be selling at tens of thousands of dollars over asking. We recommend several tactics to win the offer: Escalation clause that you will pay $xxx over the highest offer, you will pay 1.5% of the Buyer Agent fees (using your Commission Sharing) or that you will offer the Seller the rent free time in the home. We will explore those options as we look at the home you are purchasing with our Strategy Report.

Closing Costs Paid by Seller: Most Sellers will NOT pay closing costs in this market. Please ask your lender if you need closing costs paid. Many lenders have Lender Credits or can roll the closing costs into your loan. These tactics are only available if you ask. If not, let’s get the lowest price possible and not ask for closing costs. Remember, you can always use your rebate to cover these costs.

Closing Date: Attorneys must close property sales in Georgia. We need a closing date Monday - Friday. IMPORTANT: If your sale is based on you closing another property, we need to be very specific about your closing date and time at the time of the agreement with the Seller. AND we need to make this sale contingent on your sale. Please let us know these specifics.

Additionally, the Purchase and Sale Agreement allows for up to 8 days past the closing date if your lender has a delay or there is a Seller title issue.

Possession Time: If a home is occupied, the Seller may request that they have a few days, at no charge, for their move out after closing.

Holder of Earnest Money: DUFFY Realty will hold the earnest money in our escrow account at Bank of America.

Closing Attorney: We recommend Mozley, Finlayson and Loggins because 1) they have the lowest closing attorney fees for DUFFY clients, 2) we don’t attend closing but they are in charge and will take care of your questions and concerns and will wrap up the closing with all the i’s dotted and t’s crossed.

Earnest Money: The earnest money standard in Georgia is 1% of the list price. The earnest money will need to be deposited in our escrow account within 3 days and you will need to upload your receipt from the bank so that we can show the listing agent and Seller that it is there.

Due Diligence and Inspection: In the 5 day request that we will make to the Seller for Due Diligence, you will need to inspect the home (we have a list of inspectors who warranty their work and offer general liability insurance. Please verify this when you hire them, neighborhood and any other concerns like schools, etc… that you have. During this period, you can terminate the agreement for any reason and get your earnest money back.

Time Limit of Offer: We will give the Seller 24 hours to respond to your offer.

Financing Exhibit: If you are getting financing, we will need the specifics of the loan and we will write a contingency for xxx days for both appraisal and for you to get approved for financing. If you do not get approved or the appraisal is after xxx days, you will lose your earnest money. Talk to your lender to see if they can make that time frame. Stay on your lender. Note: Depending on what home you are making an offer on and the competition that also wants to buy the home, you may need to reduce the days to 5. Please make sure that you have given your lender every document needed and that they have processed your loan to an approval status.

Seller’s Disclosure: We will ask for a disclosure from the Seller about the condition of the property and the Homeowner’s Association fees, if there is an HOA.

Personal Property: If you would like any personal property, please make a list so that we can ask the Seller for the items with the offer. Double check the Seller is not already leaving it in the disclosure.