The Georgia Association of REALTORS (GAR) will release their NEW contract package on 1/1/2023! Do you want the FIRST LOOK at what the changes include? Watch this series of videos “2023 GAR Changes” and register for our FREE 3 hr CE classes (for Georgia Real Estate Licensees) and be among the first to know of these changes! The following is a synopsis of the latest episode of “Real Estate Made Crystal Clear” with our very own Dana Sparks. You can watch the video in its entirety below.
The Georgia Association of Realtors (GAR) has made a minor addition to the Purchase and Sale Agreement regarding the Survival Clause. This post will discuss the change made to the Survival Clause in 2023 and briefly explain what it means for a provision or paragraph to survive a contract.
What is the Survival Clause in a Contract
The Survival Clause in a contract specifies terms or specific provisions of the contract that will remain in effect and enforceable even after the contract has been fully executed and closed. If it does not say that it survives the closing, it is not enforceable after the closing.
What are the New Additions to the Survival Clause in 2023
In the GAR Contract Package, there are eight specific items that survive the closing of a contract. The addition made in 2023 is the Buyer’s Indemnification Obligations arising out of the inspection of the property by the buyer and buyer’s representatives. This references a brand new paragraph in the Purchase and Sale Agreement regarding the buyer’s inspection of the property.
The ‘Magic Words’
When you are contracting for something that was not itemized, you need to add this magic phrase: “This provision shall survive closing.” If you add that magic phrase to the end of something that a buyer and a seller agree for contractually in a special stipulation in an amendment then that kicks in that provision of the survival clause and that would be enforceable. In effect, parties would be obligated to perform on that even after closing. The exact language used for these magic words can vary depending on the specific contract, but they are commonly found in survival clauses in purchase and sale agreements. It’s important to consult a lawyer or real estate professional for the proper use of magic words in a contract.
The Survival Clause in a contract is important to understand as it specifies the terms that remain enforceable even after the contract has been closed. The GAR has made a new addition to the Survival Clause in 2023 regarding the Buyer’s Indemnification Obligations arising from the inspection of the property. Understanding the changes to the GAR Purchase and Sale Agreement and the provisions that survive the closing of a contract can be valuable information for real estate agents.
Watch the entire video for more information here: