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Comment car sale agreement template
hi everybody dana sparks broker of maximum one greater atlanta realtors and today's contract tip we are still continuing on with the changes that the georgia association of realtors has made to the 2021 contract package so please watch the entire series uh i will link the other videos below uh we also teach uh maximum one greater atlanta real well maximum one companies all of them host continuing three hour continuing education classes on the changes called the 2021 gar contract changes i will link uh the the link to the online virtual calendar below those are virtual those are free uh this is video is being recorded in january of 2021 we also have classes in december as well um and so let's move on so today what i want to talk about is the new special stipulation that gar has added for 2021 they've only added one uh and let me go over it and then let me give you uh an example where it might be useful to you so the special stipulation that gar has added for 2021 is special stipulation number 627 expiration of deadlines and this is how it reads all time deadlines set forth herein shall expire at blank am or pm on that day of the deadline so gar special stipulation six to seven that's how it reads now let me give you uh an example of why that is important so the car purchase and sale agreement in the guard contract packages they do reference time but what they reference well let me even back up further from there when there is a deadline specified in the contract package it just has a date and if it is the date so for example if it goes through january 11 2021 that contingency those provisions the opportunity for the party to perform based on that contingency based on the contract goes through the entire day the entire day without any written specification goes till through 11 59 pm at night so all time frames go deal with a date that goes through 11 59 p.m of that date closing date contingencies so forth and so on the closing date one i'm going to get back and address uh in just a second so that's why this is important uh the purchase and sale agreement does reference time frames but it talks about the contracts being in eastern time it talks about the definition of uh banking days versus um uh uh calendar days it talks about time is of the essence it talks about what a business day is um it talks about all of these things it talks about that no deadlines can be extended by day other than the closing date if it falls on a weekend or a federal holiday but everything else nothing is specified so again as i mentioned it goes through 11 59 pm so here's why you may want to use that special stipulation either blanketly like it has written or perhaps with respect to one of the deadlines or the other here's where a lot of people are getting in trouble you have a closing date let's say we have a contract and we are scheduled to close on january 31st 2021. let's say uh you get you are representing the seller and you get notice from the closing attorney that there is uh uh there is an issue with the title or there's an i'm sorry you get noticed that there's an issue with the loan or uh yeah something on the buyer's behalf and the buyer is not able to close so you get this on the day of closing or day before closing so forth and so on the day of closing in my example is january 31st 2021. you get this notice that the buyer is not going to be able to close you're on the day of closing let's say you had a closing schedule for 11 a.m at 1 pm the seller sends the tnr the notice of termination guess what yep the seller has just defaulted on the contract and the buyer is going to get their earnest money back the date of closing is january 31st 2021. they have the uh the buyer has the opportunity through 11 59 p.m on that date to close to amend the contract they could have the uh in the guard contract they could have a provision for an eight day unilateral extension so there's a whole variety of things the buyer has through that date now is a closing attorney gonna stay and close the deal at 11 pm probably not nevertheless per the contract those contingency time frames including closing date go through that entire day so what should you do well if you don't have any special stipulation in a contract agreeing to a specific time frame then the seller needs to wait until 11 59 pm comes and goes and it's now february first and then send the tnr that the buyer failed to close and uh they if they are requesting the earnest money as liquidated damages for the buyer's default but in my example they sent the club and this happens all the time we're having sellers sending terminations on the day of closing when they know for a fact the buyer is not able to close a lot of times also uh if it's either something with the buyer's loan or something or so forth well you don't know it could be the buyer gets cash to close it so my point is this is a very important special stipulation to use in whole to apply to all contractual contingencies or a closing date just to keep that in mind if not if you don't use that the other important lesson for this video is do not send a termination notice prematurely or you could be harming your client you could put your own client in default rather than letting the contract fail to close based on a buyer default the buyer not able to come to closing and have the seller default accidentally hope this contract tip helped you out i'd love to hear your comments below thank you guys so much for watching dana sparks broker of maximum on greater atlanta realtors satisfying your needs with service innovation and education bye you
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