Purchasing a condominium or a single family home, whether it be your first time or your fifth time, is the largest financial decision and/or purchase you will make in your lifetime. As we just said, you will probably do this more than once. And you will see one or two pieces of paper during the process. (kidding of course…we keep the paper companies in business!)
I’m not going to touch the loan application process, or the closing paperwork for your mortgage. Not my expertise by any means. Those questions are best left to one of our Team Member Lenders! What I will cover here, are the key Georgia real estate forms that we will use when we represent you as a Buyer of your home or condominium.
Below, are links to four of the main forms you will see during your real estate purchase. We’ve NOT included the various exhibits regarding the type of financing you may be using. There is a different one for FHA and Conventional loans, and we can review those with you as soon as you have completed your pre-approval and know what type of financing you will be using.
Exclusive Buyer Brokerage Agreement
Once we have agreed that we want to work together, we need to have a more formal agreement about that relationship. Why? For one, Georgia law requires that we have a written agreement if I am to represent you in your real estate purchase. This agreement outlines both of our responsibilities and duties during the length of the agreement.
I will often describe this document as, ” we are married now, don’t go cheat on me!” It outlines how I am paid from a real estate purchase and your agreement to the same. Also, by signing a brokerage agreement, you are ASKING for and I am GIVING you the benefit of my knowledge and expertise in real estate and helping you choose the right home for you.
Purchase And Sale Agreement
Also known as “The Contract!” This agreement is a standard real estate contract used in the State of Georgia. It is a licensed form (in case you were thinking of borrowing it and going “rogue” in the buying process) and has been revised over the years to protect BOTH the Buyer and the Seller in fair terms. It has the option to add special stipulations to the agreement as may pertain to a special home, or other circumstances.
It has been revised to have the most key elements of the real estate purchase on the first page, and then the explanation and such regarding each of those elements on the following pages. I always encourage my Buyers to read the entire document WELL BEFORE you every have to make an offer on a property!!! This way, if you have any questions about anything outlined in the Purchase and Sale Agreement, I can review it with you in advance and make sure you are comfortable with it all.
Seller’s Property Disclosure Statement
This is the Seller’s “history book” of the house or condominium you are looking to purchase. (The condominium example is shown here, it is much the same for a single family home, but there are differences.) This disclosure helps you understand the condition of the home, its systems and what items remain, or don’t, with the home. While every part of it is important, I have Buyers look at the age of systems like a hot water heater and the HVAC. If they have been around awhile, they could be approaching the end of their life span. We address this in our Purchase Agreement above.
Disclosure statements are just that…the Seller’s opportunity to disclose what they know about the property since they have owned it. You can see there is a column for “Don’t Know.” And that is perfectly fair to answer. However, if you as a Buyer have a concern about an issue, there is a time in the process of the purchase, called due diligence, where you can investigate further.
A special note…if you purchase a foreclosure, or REO (real estate owned) property, the Seller is a lender or some such, and will not provide a disclosure statement. You will have a professional home inspector look at the property and determine as much as they can about the overall condition.
Community Association Disclosure Exhibit
This disclosure will be a part of your Purchase and Sale Agreement if you buy a condominium, or a single family home located in a subdivision with a homeowner’s association. The HOA in a subdivision will have rules and regulations you will want to know about before you purchase in the neighborhood. For example, maybe they don’t allow individual pools, and you were hoping to make your own oasis! Same applies for a condominium. This form ONLY covers the disclosure of and association, who the contact is, and what is covered in the HOA fee you are required to pay. The aforementioned items would be included in a Declaration of Condominium or other HOA documents that we would obtain for your review.
The last three brochures listed below are more informational to help you understand the home buying process, who represents who in the real estate purchase, and why you should choose to have representation.
Protecting Yourself When Buying a Home
The ABC’s of Agency
Why Should I Use A Buyer’s Broker?
I hope you find this review and links of Georgia Real Estate Forms helpful, and that you will consider me as your Buyer’s Agent for your next real estate purchase!