section 12 unit 2

What does the Disclaimer on page four of the contract mean?

Buyers should do their own research and not hold brokers responsible for information the experts should tell them.

How does the EMD differ from the down payment?

Earnest money can be lost if the buyer defaults on the contract, whereas the down payment cannot. Earnest money is paid up front, whereas the balance of the down payment is paid at closing.

Let's see what you know about the seller's lead-based paint disclosure. For which properties is the seller required to present that disclosure to the buyer?

For any residential property built before 1978

On page two of the GAR F201 Purchase and Sale Agreement under the Purchase and Sale paragraph, there's a section called "Warranty," which other sales contract forms may call "Warranty of Title." What is this in reference to?

The seller promises that the property has marketable title.

Which of the following conducts closings in Georgia?

Closing attorney

Why does Keira select the GAR F201 Purchase and Sale Agreement form for Donny and Linda's situation? There are two correct answers.

It's the statewide sales contract form for most residential resale properties. It's the contract form her broker has approved.

Which of the following statements about a buyer accepting a property in "as-is" condition is true?

The buyer retains the right to have the property inspected.

The agreement includes an Inspection and Due Diligence section. What is due diligence?

The buyer's obligation to thoroughly investigate the property while retaining the right to terminate if the results are unsatisfactory

What does the Warranty of Title (aka Warranty) in a real estate sales contract say?

The seller is legally able to deliver good and marketable title to the buyer at closing.

Now let's move on to the next section of the GAR F201 Purchase and Sale Agreement. What does "Time Limit of Offer" refer to?

The time limit for the sellers to respond to an offer

After a fierce bidding war with three other potential buyers, the Carsons enter into an agreement that includes $2,000 earnest money. When the sale is later terminated, the earnest money goes to ______.

Whichever party it belongs to based on the agreement terms

Steps in real estate transactions occur in a specific order. When does the property officially transfer to the buyer?

at closing

The legal description leaves no doubt as to which property you're buying, and which property the seller wants to________.

convey

or simply reference the ______book at the county courthouse where the deed's recorded.

deed

connect each section of the agreement to its description. Indicates the amount of money the buyer is submitting up front as a show of good faith

earnest money

true or false Earnest money must be paid in the form of a cashier's check.

false

true or false Keira explained that because she would work solely for Donny and Linda, she wouldn't be able to cooperate with the seller and the seller's agent.

false

true or false The Brokerage Relationships section is where the brokerage office address is written.

false

true or false The listing broker must fill in his or her own information in the Brokerage Relationship section.

false

true or false As Donny and Linda's agent, Keira represents them and only them in the transaction.

true

true or false The earnest money is credited toward the purchase price at settlement.

true

true or false the seller can continue to live in the property even after closing

true

Why is it so important that the legal description be captured correctly in the sales contract?

The legal description leaves no doubt as to which property is being conveyed

Why are the buyer and seller asked to initial each page of the sales contract?

To prevent the substitution of any pages by either party

connect each section of the agreement to its description. Specifies how much the buyers would like the sellers to contribute at closing

closing costs

connect each section of the agreement to its description. Notes the date the property will convey to the buyer and the date the buyer would like to move in

closing date and possession

true or false all sales contract are contingent on financing

false

true or false buyer only have the right to access to the property during the due diligence period

false

true or false buyers have two choices when it comes to accepting the property: accept the property as is or terminate the contract.

false

true or false sellers must complete all agreed-upon repairs prior to buyer move-in

false

true or false the buyer pays all of the closing costs

false

true or false the closing attorney represents the buyer at closing

false

true or false the seller sets the closing date

false

Is the following statement true or false? The Material Relationship Disclosure is where the buyers write down if they currently own property.

fasle

true or false The buyer doesn't have to provide the earnest money by a specified date as long as it's deposited before the closing date.

fasle

connect each section to its description. The period of time for the buyer to perform inspections and research related to the purchase

inspection and due diligence

connect each section to its description. States the requirement for a lead-based paint disclosure for properties built before 1978

lead-based paint

The__________leaves no doubt as to which property you're buying

legal description

We can use a recorded plat, _________and_______ description,

metes, bounds

We can use a recorded_______, a metes and bounds description,

plat

connect each section to its description. A clause stating that a buyer will accept the property in its current state

property sold "As-Is"

connect each section of the agreement to its description. Specifies the buyer's offer amount, including the down payment

purchase price

Review each statement about the earnest money deposit and determine if the statement is true or false. If the buyer is putting earnest money down, the buyer must specify the exact amount in the Earnest Money section of the GAR F201 Purchase and Sale Agreement.

true

true or false Buyers don't have to put earnest money down.

true

true or false The GAR F201 Purchase and Sale Agreement is set up so that the fields to be completed are as short and simple as possible.

true

true or false if the seller doesn't make agreed-upon repairs prior to closing, the buyer can speak specific or terminate the agreement

true

true or false sellers are required to disclose to the buyer any latent or canceled defects they're aware of.

true