Broker Lisa discovers that one of her agents has been using a GAR Purchase Agreement form from 2022 for all transactions in 2026. The current version was updated in 2025 with new disclosure requirements. What is Lisa's responsibility as the supervising broker?
Correct Answer
B) Ensure the agent uses current forms and review past transactions
The correct answer is B. Under Georgia law, supervising brokers must ensure agents use current forms and proper procedures. Lisa should immediately correct the practice and review past transactions for potential issues. A is incorrect - this is primarily a supervision issue, not a GAR violation. C is incorrect - while old forms may be binding, using outdated forms can create liability issues. D is incorrect - redoing all contracts may not be necessary or practical, but review is essential.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A bilateral contract is an agreement in which both parties exchange promises and are both obligated to perform, while a unilateral contract is one in which only one party makes a promise and the other party is not obligated to act.
A breach of contract occurs when one party fails to perform their obligations under the contract without a legal excuse. The non-breaching party is entitled to legal remedies including damages, specific performance, or contract rescission.
Consideration is something of value exchanged between parties to a contract, making the agreement legally binding. It can be money, a promise to act, a promise to refrain from acting, or anything else of value.
More Ga Contracts Gar Forms Questions
A licensee is reviewing office compliance policies regarding the use of GAR forms in Georgia transactions. Which statement about GAR forms is NOT correct?
Which statement most accurately describes the legal status of GAR (Georgia Association of REALTORS®) forms in Georgia real estate practice?
Broker Tom's firm has a GAR membership, and he wants to modify the standard GAR Purchase and Sale Agreement by adding a custom clause about pool maintenance responsibilities. Under GAR form usage rules, what is the appropriate action?
A Georgia buyer's agent is reviewing a purchase contract to determine what remedies are available if the seller defaults. The contract includes an earnest money provision and an attorney-fee clause. Which statement best describes how remedy provisions work in Georgia residential contracts?
A special stipulation requires the seller to 'provide documentation that the septic system has been inspected within the last 2 years.' The seller provides a 25-month-old inspection report. Does this satisfy the requirement?
- → Under Georgia contract law and GAR form provisions, which statement most accurately describes how earnest money disposition is determined when a transaction fails to close?
- → A buyer wants to add a special stipulation to a GAR Purchase and Sale Agreement requiring the seller to leave the kitchen refrigerator, which is not addressed elsewhere in the contract. How is this special stipulation made binding on both parties under GAR form procedures?
- → A buyer and seller executed a GAR Purchase and Sale Agreement with a special stipulation stating: 'Buyer may terminate this contract if unable to obtain financing at 6% or less.' The buyer was offered financing at 6.25% but did not terminate the contract. Instead, the buyer accepted the 6.25% financing, completed the appraisal, scheduled movers, and continued performing under the contract for several weeks. Two days before closing, the buyer now attempts to terminate citing the financing stipulation. What is the most likely legal outcome?
- → A non-REALTOR® licensee asks whether the fact that GAR forms require membership access proves they are state-mandated documents. Which statement best reflects the correct understanding of GAR forms under Georgia law?
- → Under Georgia contract law and GAR form requirements, which statement about contract amendments is NOT correct?
- → New agent Carlos just obtained his Georgia real estate license and is working for a brokerage that is a GAR member. Regarding his use of GAR forms, which statement is most accurate?
- → A seller breaches a purchase and sale agreement for a $300,000 home. The buyer deposited $8,000 in earnest money and spent $3,500 on inspections and an appraisal. The property's current market value is $320,000. If the buyer elects to sue for benefit-of-the-bargain damages under Georgia law, what is the most the buyer could recover in damages (excluding the return of earnest money)?
- → Agent Sarah is representing a buyer and wants to use the GAR Purchase and Sale Agreement form. She downloaded a version from a real estate website that claims to be the 'latest GAR form.' Under Georgia law, what is the primary concern with this practice?
- → A newly licensed agent in Georgia asks her broker whether the state requires all real estate transactions to use GAR (Georgia Association of REALTORS®) forms. Which statement most accurately describes the legal status of GAR forms in Georgia?
- → Broker Smith's trust account contains earnest money from multiple transactions. One buyer's earnest money check bounces after deposit, but before anyone is notified, Broker Smith uses funds from other transactions in the same account to cover a different earnest money release. This practice is:
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Previous Question
Agent Kevin's real estate license is active, but he's currently on inactive status with GREC. A family member asks him to help sell their home using GAR forms. Which statement is NOT correct about Kevin's situation?
Next Question
A buyer's agent is preparing special stipulations for a GAR Purchase and Sale Agreement. Which statement about special stipulations in Georgia contracts is correct?