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 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
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?