A Georgia residential purchase agreement is a legal document that formalizes the terms of sale between a buyer and seller of residential property. This contract details the purchase price, contingencies, and closing conditions, ensuring that both parties have a clear understanding of their obligations and rights.
Once drafted, the agreement is sent to the seller for review and consideration. If both parties agree to the terms, they sign, creating a legally binding arrangement. Potential deal-breakers include the buyer’s inability to secure financing, sell their current property, or transfer closing fees on time.
State Laws
- Buyer Beware: In Georgia real estate transactions, buyers should note the caveat emptor principle, meaning they are responsible for inspecting property conditions before purchase and cannot hold the seller liable for post-purchase defects. [1] Exceptions to this rule include situations where:
- The seller is the home builder.
- The seller fails to disclose severe defects not easily found through a standard inspection.
- Deposit Requirements: The seller must specify whether an earnest money deposit ranging from 1% to 3% is required.
Realtor Version
Purchase and Sale Agreement
This sample is the official residential purchase and sale agreement authorized exclusively for use by licensed realtors through the Georgia Association of Realtors.
Required Seller Disclosures
Lead-Based Paint Disclosure
For properties constructed before 1978, sellers must disclose the presence of lead paint and provide buyers with a hazardous paint information pamphlet (42 U.S. Code § 4852d).
Property Disclosure Statement
Sellers are not legally obligated to provide a disclosure form listing known property issues, but it's advisable to do so to prevent future disputes (§ 44-1-16).
Do Sellers in Georgia Have to Disclose Property Defects?
No, sellers in Georgia are not required to disclose all property defects. The state follows the principle of caveat emptor, where buyers are responsible for inspecting the property for any defects before purchase.
However, if the seller actively conceals significant defects or engages in fraudulent misrepresentation, they may face liability, potentially resulting in damages or the reversal of the real estate transaction.
