2021 GAR Contract Changes Part 1

The January 2021 GAR contract changes are final. A Power Point of the changes, written by Missy Robinson of Chicago Title, is posted in the RMAA Hub in the Resources Library.  There are new forms as well which can also be found in the Resources Library.  Important changes to the agreements will be covered here over the remaining weeks of December.  Please be sure to review the changes and new forms before using them for details.


Important changes to the (former) Listing Agreement:

1. The Exclusive Seller Listing Agreement” will now be known as the “Exclusive Seller Brokerage Engagement Agreement.”  
2. There are 3 dates to complete: The Start Date, the Marketing Commencement Date, and the Ending Date.  
3. There is a new “Commission Adjustment to Cooperating Broker clause to comply with the legal obligation for the Seller to approve of how money is used for commission.
4. Sellers have to consent to dual agency.
5. When a sale has fallen through and an extension of the listing period is allowed, a time limit of 5 days has been placed on notification by the listing agent to the seller.  The Notice must be in writing in writing and (very important) the Notice to extend must be prior to the expiration of the brokerage agreement.
6. Added clause: Buyers and Brokers may take photographs, videos and other electronic images so the seller should remove personal property that the Seller does not want in an image.
7. Broker must list in MLS/FMLS within 1 day of the Marketing Commencement Date (including Coming Soon).
8. Section C. Language was added referencing the Georgia Law requiring latent defects to be disclosed as well as the Federal law reference that the Lead Based Paint Disclosure is required if the property was built prior to 1978.  (This removes the burden of counseling a Seller to comply.  You have the legal code references.)
9. For your protection, clauses were added that Broker has no duty to inspect or advise regarding the propensity of the property to flood or flood zone certifications.
10. For your protection, the clause regarding brokers’ lack of authority was expanded to giving Notices on behalf of the seller other than to forward, if requested by seller, a notice signed by seller.  As usual, a notice received by a broker is deemed to be noticed received by the seller.
11. A new Seller duty was added to carefully read all contract to sell before signing the, and comply with all duties and all time deadlines.
12. The Seller Default section was expanded to make clear that if a seller terminates a brokerage agreement without the agreement of the broker, then the broker removing the listing from MLS, Removing signage and ceasing marketing shall not be evidence of the broker’s agreement to mutually terminate, but is merely acquiescence of the unilateral termination.

There are additional details, relocated clauses and other new paragraphs in the miscellaneous section of the new Exclusive Seller Brokerage Engagement Agreement.  Please review the entire document.


Next week we will summarize changes to the Buyer Brokerage Agreement and the Purchase and Sale Agreement.