A buyer and seller are using the GAR Purchase and Sale Agreement. The buyer adds a special stipulation requiring the seller to provide a home warranty, but the pre-printed contract language states 'seller makes no warranties.' Which provision takes precedence under Georgia law?
Correct Answer
A) The special stipulation takes precedence over pre-printed language
Correct: A - The special stipulation takes precedence over pre-printed language. Under Georgia contract interpretation rules, special stipulations and handwritten provisions take precedence over pre-printed or typed language when there is a conflict. Why not B: This option is incorrect because "Both provisions cancel each other out" does not match the rule tested by the question. The correct answer is "The special stipulation takes precedence over pre-printed language". Under Georgia contract interpretation rules, special stipulations and handwritten provisions take precedence over pre-printed or typed language when there is a conflict. Why not C: This option is incorrect because "The provision most favorable to the buyer applies" does not match the rule tested by the question. The correct answer is "The special stipulation takes precedence over pre-printed language". Under Georgia contract interpretation rules, special stipulations and handwritten provisions take precedence over pre-printed or typed language when there is a conflict. Why not D: This option is incorrect because "The pre-printed warranty disclaimer takes precedence" does not match the rule tested by the question. The correct answer is "The special stipulation takes precedence over pre-printed language". Under Georgia contract interpretation rules, special stipulations and handwritten provisions take precedence over pre-printed or typed language when there is a conflict.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
More Ga Contracts Gar Forms Questions
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 standard Georgia residential purchase contracts, which statement most accurately describes how remedy provisions work when a party defaults?
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)?
A Georgia licensee encounters a complex legal issue during a condominium transaction that is not addressed by any standard GAR form provision. Which statement about the licensee's proper course of action is correct?
First-time homebuyers ask their salesperson to explain the consequences of breaching the purchase and sale agreement. How should the salesperson respond?
- → 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?
- → Which of the following statements about GAR (Georgia Association of REALTORS®) forms is NOT correct?
- → Salesperson Karen is completing a GAR Buyer's Agreement with her clients. The buyers ask about the difference between exclusive and non-exclusive representation. What can Karen do within her license authority?
- → A Georgia exam-prep problem uses the following data. A Georgia contract states that, upon buyer default, the seller may keep liquidated damages equal to 1.0% of the purchase price, but not more than the earnest money actually paid. The purchase price is $322,600.00 and the earnest money paid is $7,000.00. What amount may the seller keep if the seller elects liquidated damages?
- → A GAR purchase and sale agreement includes a financing contingency with a specific deadline. The buyer fails to obtain loan approval by the deadline but does not notify the seller or request an extension. The listing agent asks whether the contingency has any effect on the parties' obligations. Which statement best reflects how contingencies function under Georgia contract law?
- → A Georgia real estate contract provides the non-breaching party with multiple potential remedies for default, including liquidated damages and specific performance, but does not explicitly state whether the party may pursue more than one remedy at the same time. Which statement best describes the legal issue this creates?
- → Under Georgia contract law and standard GAR forms, which statement most accurately describes the relationship between default remedies available to buyers and sellers?
- → A buyer under a GAR Purchase and Sale Agreement fails to apply for financing in good faith, does not make reasonable efforts to obtain a loan, and misses the financing deadline without requesting an extension. The buyer then refuses to close. Under the standard GAR form provisions, what happens to the earnest money?
- → A GAR Purchase and Sale Agreement includes a clause stating 'time is of the essence.' The buyer fails to close by the specified closing date. Under Georgia law, what is the legal effect of this clause?
- → Under GAR contract forms, which statement correctly describes the relationship between liquidated damages provisions and specific performance provisions?
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Previous Question
Under Georgia contract law and GAR form provisions, which statement accurately describes how modifications to a real estate contract should be handled?
Next Question
In a GAR contract, the closing date is typed as 'June 15, 2026,' but a special stipulation states 'Closing must occur no later than June 30, 2026, time is of the essence.' The seller fails to close by June 15 but is ready on June 20. What is the legal status?