A contract for the purchase and sale of real property must be in writing to be enforceable in Georgia. The majority of these agreements are pre-printed, fill in the blank forms and the should contain, at a minimum, the following key elements:
- a complete legal description for the real property being sold
- a purchase price and clear method of how it will be paid
- states who will hold the earnest money and under what conditions, it will be disbursed
- date of closing and delivery of possession
- which party will pay the closing costs
- proration statements for taxes and association fees
- requirement that the seller convey good and marketable title subject only to certain standard exceptions
- termite inspection letter showing no active infestation
- clear statement of what fixtures/appliances stay with the property and what the Seller plans on removing prior to delivery of possession to the Buyer
Why would a Buyer want to tender an offer on a property contingent on financing approval, inspection results or appraisal amount?
A contingency creates the right to terminate the purchase agreement, with no penalty and a full refund of the earnest money upon the occurrence or non-occurrence of a specific event. Without a contingency in the purchase agreement, you would be required to complete the purchase of the property and assume the penalties if you choose to terminate the purchase agreement (for example, losing your earnest money deposit).