AGENCY DISCLOSURE AND ELECTION

When you purchase a home in the state of Georgia, the relationship between brokers, buyers and sellers must be disclosed to all parties in the real estate transaction. HouseAtlanta offers agency relationships to both buyers and sellers and can provide materials to help you decide which agency relationship best meet your needs.

HouseAtlanta Agents can show you each and every home as seen on our website or listed with any brokerage such as Remax, Coldwell Banker, Harry Norman, Keller Williams, Prudential, Centry21 and many others. In Georgia, we are not limited to showing homes listed within our brokerage. We show homes in the Atlanta Real Estate Market, Alpharetta Real Estate Market, Roswell Real Estate Market, Cumming Real Estate Market, Canton Real Estate Market, Woodstock Real Estate Market and many areas of Metro Atlanta.

The offer to purchase is usually provided by the selling broker. This contract should cover all terms of the proposed transaction and must be accompanied by an earnest money check from the purchaser. Once the offer is fully negotiated and signed by all parties to the agreement, it is a legally binding enforceable contract. Both purchasers and sellers should make sure they understand all terms and conditions of the offer before signing it and should seek legal counsel if they have doubts or concerns.

The earnest money deposit made by the purchaser at the time the offer to purchase is written in approximately 1% of the purchase price (5% for new construction). This may fluctuate but must be an amount acceptable to the seller. A personal check is acceptable. If the offer is accepted by the seller, the earnest is immediately thereafter deposited in the broker’s escrow account. It is held there until closing, at which time it is applied toward the purchaser’s down payment and/or closing cost. If the offer to purchase is not accepted by the seller, the earnest money check is never deposited and is returned.

Contracts are generally contingent upon the purchaser’s ability to secure the financing described in the contract within a specified period of time. (Typically 14 days) Once the specified period of time has passed, the contingency is removed.

Closing and transfer of title generally take place within 15-45 days after acceptance of the contract to purchase. The date when closing is to take place is negotiated and agreed upon by buyer and seller in the contract to purchase. There are occasionally unavoidable delays in securing loan approval. You should be aware that even the most diligent agent will have no control over the situation once your loan application has been submitted.

Occupancy generally takes place the day of close or 2-3 days after the closing and this period is usually rent free to the seller. A specific date of occupancy is negotiable and is a term of the contract.

Closings generally take place at an attorney’s office, with all parties to the transaction being present. The listing and selling agents and/or brokers are also present.

Mortgagee’s title insurance, which protects the lender only, is required by all lending institutions is an amount equal to the amount of the loan. Purchasers are encouraged and advised to obtain owners’ title insurance for the full value of the residence, or to discuss this matter with legal counsel.

Most closings are handled by the attorney representing the mortgage company, whose fee is paid by the mortgage company and is part of the closing cost. The closing attorney is responsible for the title examination, recording of the documents, etc. Buyers and sellers are encouraged to seek private counsel to resolve any legal questions regarding the transaction or to accompany them to closing. In those instances where no mortgage company is involved, the purchaser may engage, at his expense, any attorney he chooses to handle the transaction. 

FUNDS REQUIRED FOR CLOSING

Down payments and closing cost are to be provided in the form of a cashier’s/certified check, payable to the purchaser, who will endorse it at closing. An estimate of closing cost may be obtained at the time loan application is made.

Purchasers are required to bring a policy for fire and hazard insurance to the closing and, if applicable, a flood insurance policy. The minimum value of this policy should be equivalent to the loan amount. One year’s premium must be paid prior to, or at, closing and the policy must contain a loss payable clause in favor of the lender. Should you pay for the policy before closing, you must furnish the paid receipt at the closing.

Most real estate contracts require the seller to warrant that at time of closing the Property will be in the same condition as it was on the date this Agreement was signed by Seller, normal wear and tear excepted. It is the buyers responsibility to check that all appliances remaining with the premises and the heating, air conditioning, plumbing (including without limitation septic tank systems, pool and spa) and electrical systems will be in the normal operating condition prior to closing, as the seller’s responsibility ceases at closing.

It is common practice for the Purchase and Sale Agreement to contain a contingency upon the buyers obtaining a complete inspection of the structural aspects of the premises, as well as the mechanical items. Such inspections can be obtained by employing an inspector of your choice. Costs range from $300 and up depending on cost of home. This cost is paid by the purchaser. The correction of any defects determined by the inspection is usually negotiated between purchaser and seller.

LEAD BASED PAINT DISCLOSURE

Federal law requires that individuals receive certain information before renting, buying or renovating pre-1978 housing. Sellers and Landlords have to disclose known information on lead-based paint hazards before closing on a house or before leases take effect. Leases and sales contracts will include a federal form about lead-based paint in the building. Buyers will have a predetermined time frame to check for lead hazards. Renovations will also have to provide a pamphlet before starting work.

WOOD INFESTATION REPORT

Buyer may at Buyers expense obtain a report from a licensed pest control operator on a standard form in accordance with the regulations of the Georgia Structural Pest Control Commission, stating that the main dwelling has been inspected and found to be free from visible evidence of active infestation caused by termite or other wood destroying organisms. If visible evidence of active or previous infestation is indicated, Buyer may request Seller correct said infestation and structural damages resulting from said infestation and provide documentation evidencing correction of same/and or provide documentation, satisfactory to lender (if applicable), indicating that there is no structural damage resulting from any previous infestation.    It is not uncommon for a home in the Atlanta area to have had some form of termite infestation. If it had been properly treated when detected, then the problem should no longer exist. However, if an inspection for termites shows either active or prior infestation, then both borrower and lender will be called upon to agree on who will provide the engineering expertise to certify that the dwelling is structurally sound. This process should not cause you undue alarm, and you will need to look to your agent and your lender for guidance during this process.

Radon test are available for those purchasers who may be concerned.

EFIS-CLAD WALLS (ARTIFICIAL STUCCO)

Most are familiar with an exterior wall cladding known as stucco (hard coat). Where this product has been properly applied to a dwelling’s exterior walls, in most cases, it has been determined that the structure is well protected from the elements, infiltration from pests, and the protection afforded by this type of cladding is designed to offer the homeowner a long use life.

Unfortunately, there are some major problems in the form of moisture accumulation that is affecting many of the homes that have utilized the EFIS system to clad their exterior walls. In association with this moisture buildup a growth environment is created that encouraged the introduction of termites and other destructive organisms to the structure. This does not mean that all homes clad with EFIS have these problems.

A professional inspection is strongly recommended. Your sales associate can give you a list of inspectors who are thoroughly trained in the use of the inspection protocol of moisture mapping along with the latest available technology that can be employed in detecting the integrity of the cladding system.

You will be well served to employ such an inspection process whether the cladding appears to be hard coat stucco or EFIS (artificial stucco), because there are many documented cases where even the trained eye was unable to detect which system was in use without employing the necessary testing protocol.

Much the same as it is untrue that all stucco is, of necessity, good, so to is it untrue that all EFIS is defective. In those cases where this cladding system was properly installed and has been maintained in accordance with the manufacturer’s instructions, inspection reveals a cladding system that should provide its owner with years of relatively maintenance free living, but again, the real key to peace of mind is a professional inspection.