WHAT CONTROLS IN A GAR CONTRACT? The Rules of Interpreting the Agreement

​The GAR Purchase and Sale Agreement provides users with rules on how the Agreement should be
interpreted. In the event of internal conflicts or inconsistencies in this Agreement, the following rules for how those conflicts or inconsistencies shall be resolved will apply:

1. Handwritten changes shall control over pre-printed or typed provisions;
2. Exhibits shall control over the main body of the Agreement;
3. Special Stipulations shall control over both exhibits and the main body of th        Agreement;
4. Notwithstanding the above, any amendatory clause in an FHA or VA exhibit shall control over inconsistent or conflicting provisions contained in a special stipulation, another exhibit or the main body of the Agreement.

When interpreting the contract and trying to determine what controls, special stipulations control over both exhibits and the main body of the agreement but handwritten changes control over pre-printed or typed provision. If an FHA or VA exhibit is included with the contract, any amendatory clause shall control over inconsistent or conflicting provisions contained in a special stipulation, another exhibit, or the main body of the agreement. The amendatory clause gives the buyer the right to terminate the contract without forfeiting the earnest money if the appraised value does not meet or exceed the sales price. It cannot be removed or changed in a special stipulation. 

This should help resolve questions that have arisen when attempts have been made in special stipulations to amend or override the amendatory clause. The amendatory clause includes language making it superior to all other provisions of the contract. This language helps make it clear that a special stipulation cannot change the amendatory clause regardless of the verbiage that is used. 

In summary, special stipulations control over both exhibits and the main body of the agreement but any amendatory clause in an FHA or VA exhibit shall control over inconsistent or conflicting provisions contained in a special stipulation, another exhibit, or the main body of the agreement.