What sets us apart is attention to detail. Not only do we pay attention to the details of your contract, but we aggregate and analyze the data from hundreds of contracts. The resulting information gives us insight into market trends, which we delight in passing along to you.
GAR Form of the Month
F604 Back-Up Agreement Contingency
The Back-up Agreement Contingency Exhibit F604 is a form used in Georgia real estate transactions to outline the conditions under which a back-up offer will become the primary contract if the initial contract falls through.
One of the most common errors I see with this Exhibit is agents waiting to collect Earnest Money until after the backup offer becomes primary. See below for language explaining the deadlines and how they are handled different for a binding backup contract.
5. In the event the Primary Agreement and all other back-up agreements in higher positions are terminated, Seller shall deliver notice of the same to Buyer, this Agreement shall become primary and no longer subject to this Contingency Exhibit and Buyer and Seller shall close on this Agreement in accordance with its terms and conditions, provided, however, that: (a) notwithstanding anything to the contrary contained herein, all parties agree that the time limits (except the delivery and deposit of Earnest Money) shall commence on the date that notice of the termination of the Primary Agreement and all back-up agreements in higher positions are provided; and (b) the closing date shall be the date listed in the Agreement unless because of the change in the Binding Agreement Date any of the time periods for Buyer to conduct due diligence, or fulfill other contingencies in the Agreement extend beyond the closing date in which event the new closing date shall be seven (7) days from the last date Buyer has to fulfill Buyer’s contingencies or the end of any Due Diligence Period, whichever is later.
I have seen contracts where agents add a special stipulation to the binding backup offer stating that the Earnest money will be due after the offer becomes primary.
The most common way I've seen agents notify the Buyer in the backup position that they are now primary is by using the GAR Form F819 (Notice)
Note: The information provided in this newsletter is for general informational purposes only and should not be construed as legal or brokerage advice.
I attended a CE Class this month taught by Mark Seib of Ganek PC. The class dealt with Probate Sales. He shared the following special stipulation that he allowed me to share with you.
“Purchaser’s obligation to close is expressly contingent upon receipt of
and approval of evidence of valid probate, administration or other
proceeding or process legally sufficient to support a conveyance of
clear and marketable title sufficient to support the issuance of an
owner’s title insurance policy for Purchaser without exception for
estate or estate tax matters. Seller shall provide such evidence to
Purchaser within five (5) business days of the Binding Agreement Date
herein, and failure to so do shall render this contract null and void and
all earnest money shall be refunded to Purchaser. Purchaser shall
have five (5) days to confirm in writing to Seller that such evidence is
satisfactory, or this contingency is waived.”
Monday, May 27, 2024
Memorial Day
Wednesday, June 19, 2024
Juneteenth
Thursday, July 4, 2024
Independence Day
Monday, September 2, 2024
Labor Day
Comments