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?
Correct Answer
A) The seller has until June 30 to close without breach
Correct: A - The seller has until June 30 to close without breach. The special stipulation extending the closing deadline to June 30 takes precedence over the typed June 15 date. Special stipulations override other contract provisions. Why not B: This option is incorrect because "The contract is breached because June 15 was the firm deadline" does not match the rule tested by the question. The correct answer is "The seller has until June 30 to close without breach". The special stipulation extending the closing deadline to June 30 takes precedence over the typed June 15 date. Special stipulations override other contract provisions. Why not C: This option is incorrect because "The contract is void due to conflicting dates" does not match the rule tested by the question. The correct answer is "The seller has until June 30 to close without breach". The special stipulation extending the closing deadline to June 30 takes precedence over the typed June 15 date. Special stipulations override other contract provisions. Why not D: This option is incorrect because "The buyer can choose which date to enforce" does not match the rule tested by the question. The correct answer is "The seller has until June 30 to close without breach". The special stipulation extending the closing deadline to June 30 takes precedence over the typed June 15 date. Special stipulations override other contract provisions.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
Earnest money is a deposit made by the buyer at the time of the offer or shortly after to demonstrate good faith and serious intent to purchase the property. It is also called a good faith deposit.
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
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?
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A special stipulation in a GAR contract states: 'Seller agrees to replace roof if inspection reveals more than 5 missing shingles.' The inspection finds 3 missing shingles and significant granule loss. What is the seller's obligation?