This document establishes your rights and obligations and also provides for penalties for non-performance or default. In Georgia, a contract for the purchase and sale of real property must be in writing to be enforceable. There is no one standard contract form in this state, but the most widely used form is one published by the Georgia Association of Realtors. No matter which preprinted, fill-in-the-blank form you use, it should address at least the following concerns:

* a complete legal description of the property
* the purchase price and a clear statement of how it will be paid
* a statement of who holds the earnest money and under what conditions it will be disbursed
* date of closing and delivery of possession
* who pays closing costs
* proration statement for property taxes, homeowner association dues
* requirement that seller convey good and marketable title subject only to certain standard exceptions
* requirement that seller provide a termite inspection showing no active infestation
* a clear statement of what remains with the property and what the seller intends to remove
* seller’s property disclosure statement

In addition to the above considerations are items known as contingencies. A contingency creates the right to terminate the contract, with no penalty and with full refund of earnest money, upon the happening or non-happening of a specified event. The most common contingencies are loan approval, inspection and appraisal, but could be anything that would affect your decision to buy the property. As an example, suppose that you only wanted to buy a house where you could put a swimming pool in the backyard. The survey that you had done revealed that a sewer pipe crossed the backyard, making it impossible to place the pool there. If you had not inserted a contingency in the contract allowing you to terminate under this set of circumstances, you would be required to complete the purchase.

Regardless of which contract you use, there are many provisions that may have to be modified or deleted to meet the requirements of the particular situation. Once you sign he contract you have obligated yourself to perform and assumed certain liabilities for non-performance. GRECAA recommend that you consult with a real estate attorney for guidance in reviewing you contract to ensure that your interests are protected.