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The Latest

Did you know that GCAAR released revised forms on February 1, 2019? Part 2: Addendum of Clauses

March 29, 2019


We will be discussing the key changes in a series of posts relating to the revised forms. In our last post, we discussed the key changes to GCAAR Form 1301 (Sales Contract). In this post, we will focus on the changes to the Addendum of Clauses forms. Some of these revisions were technical corrections with no substantive effect. However, several keys changes were made, and this post will highlight the most important changes to the Addendum of Clauses forms.

Addendum of Clauses – A (GCAAR Form 1332)

Paragraph 1 (SELLER’S CREDIT(S) TO BUYER): Previously, the seller credit could only be expressed as a dollar amount. The revised form has an additional line so that the seller credit can be expressed as a percentage of the sales price.

Paragraph 3 (ADDITIONAL “AS-IS” PROVISIONS): The revised form enables the parties to select specific as-is provisions to incorporate into the contract. Under subparagraph A, the parties can incorporate four additional as-is provisions into the contract by checking the appropriate box(es).

Specifically, the parties can select from the following additional as-is provisions:

  • All clauses pertaining to delivery of the Property free and clear of trash and debris and broom clean are deleted.
  • All clauses pertaining to termites and wood-destroying insects are deleted.
  • All clauses pertaining to private well and/or private sewage systems are deleted.
  • All requirements for Seller to comply with orders or notices of violations of any Condominium Unit Owners’ Association and/or Homeowners’ Association related to the physical condition of the Property are deleted.

Except as otherwise provided, the Property Maintenance and Condition paragraph of the contract (Paragraph 7 of GCAAR Form 1301) will remain in full force and effect, including the requirement for the seller to comply with smoke detector and carbon monoxide detector laws.

Paragraph 10 (POST-SETTLEMENT OCCUPANCY ADDENDUM): The revised form no longer sets forth the terms of the post-settlement occupancy. If applicable, the parties must incorporate the stand-alone Post-Settlement Occupancy Addendum (GCAAR Form 1309) into the contract.

Addendum of Clauses – B (GCAAR Form 1339)

Paragraph 1 (SALE OF BUYER’S PROPERTY CONTINGENCY WITH KICK-OUT): The revised form incorporates the definition of “Conditional Commitment” to comport with the terms of the financing contingencies.

Paragraph 2 (SETTLEMENT OF BUYER’S PROPERTY CONTINGENCY): The revised form incorporates the definition of “Conditional Commitment” to comport with the terms of the financing contingencies.

Paragraph 3 (BACK-UP CONTRACT): The revised form clarifies that all timeframes contained in the back-up contract, including but not limited to all timeframes governing delivery of the deposit and all contingencies, do not commence until the date that the back-up contract becomes primary.

Paragraph 12 (PRE-SETTLEMENT OCCUPANCY ADDENDUM): The revised form no longer sets forth the terms of the pre-settlement occupancy. If applicable, the parties must incorporate the stand-alone Pre-Settlement Occupancy Addendum (GCAAR Form 1308) into the contract.

If you have any questions on these revisions to the Addendum of Clauses forms or any of GCCAR’s revised forms, please don’t hesitate to contact us.

CONTACT

Matthew D. Alegi

Danielle M. Dolch

David M. Kochanski

Marc D. Lipman

MORE INFORMATION

For more information regarding our Residential Real Estate Settlements Group or our general real estate transactions and litigation practice, please contact the Group Chair at settlements@shulmanrogers.com.

This publication/newsletter is for informational purposes and does not contain or convey legal advice. The information herein should not be used or relied upon in regard to any particular facts or circumstances without first consulting a lawyer.

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