PURCHASE AND SALE AGREEMENT: The document that creates a valid, enforceable contract between a buyer and seller in Georgia is called a Purchase and Sale Agreement. This contract has been created and pre- approved by attorneys and the Georgia Association of REALTORS®( GAR) and includes. but is not limited to, terms related to the legal description of the property, purchase price, method of payment. buyer's earnest money, closing date, and possession, inspection and agency. No longer is there a finance contingency included in the Purchase and Sale Agreement. If a buyer needs a finance contingency, it must be stipulated by an attached exhibit stating the loan terms. Otherwise, the contract states only that the buyer is paying cash. OFFER AND COUNTER OFFER: Creating a Purchase and Sale Agreement involves negotiation and may require several iterations to arrive at a complete agreement between the parties. An offer or counteroffer is created whenever a party initiates changes or adds to a Purchase and Sales Agreement. The buyer. or buyer's agent, presents offers to the seller's agent; the seller's agent in turn, presents the offer to the seller. The seller may accept the offer as is or make a "counteroffer." Any changes to the offer automatically reset the time limits and void the original offer once received by the original offering party. While negotiating a purchase or sale, it is important to remain aware of the time limits each party allows for response. Time is of the essence in real estate agreements, and if you miss a deadline, you may miss an opportunity or, worse, be committed to something you didn't want. BINDING AGREEMENT: A Binding Agreement is created when one party presents a signed written offer to purchase or sell the property to a second party, and that party accepts the same offer in writing, unchanged, and delivers written acceptance back to the offering party before the time limit in the offer expires. In the GAR (Georgia Association of REALTORS®) Purchase and Sale Agreement, the date the parties reach mutual agreement is referred to as the Acceptance Date. The date the offering party receives the written notice of acceptance is referred to as the Binding Agreement Date. The party receiving the written notice of acceptance is responsible for notifying the other.
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