What Is the GAR Contract?

The GAR Purchase and Sale Agreement — published by the Georgia Association of Realtors — is the standard form contract used in the vast majority of residential real estate transactions in Georgia. When you make an offer on a home in Atlanta, Douglasville, Marietta, Dallas, or any other Georgia market, the offer is almost certainly written on a GAR form or a substantially similar attorney-drafted equivalent.

Understanding the GAR contract's structure and key provisions puts buyers and sellers in a position to make informed decisions rather than relying entirely on what someone else tells them a clause means. This guide covers the most consequential provisions — the ones that affect money, timing, and your ability to exit a contract without losing your earnest money.

Earnest Money: How It Works in Georgia

Earnest money in Georgia is held in escrow — typically by the buyer's agent's brokerage or a title company — from the time the offer is accepted. It is NOT automatically forfeited to the seller if a deal falls through. The GAR contract specifies exactly the circumstances under which earnest money is released to the seller vs. returned to the buyer, and the procedures for resolving disputes over it.

Key earnest money facts:

No minimum or maximum is legally required — but $1,000–$5,000 is typical in the west Atlanta suburbs for properties in the $280K–$415K range; $5,000–$10,000+ for higher-priced properties
Higher earnest money communicates stronger buyer commitment and can strengthen an offer in competitive situations
If a buyer terminates during a valid contingency period (inspection, financing, appraisal), earnest money is returned to the buyer
If a buyer terminates outside of a valid contingency — or after waiving contingencies — the seller may have a claim to the earnest money as liquidated damages
Earnest money disputes go through the GAR's default resolution process; in Georgia, a broker holding disputed earnest money typically requires a court order or written mutual agreement from both parties before releasing it

The Three Core Contingencies

Financing Contingency

The financing contingency (Due Diligence / Loan Contingency in GAR form language) protects buyers whose purchase depends on obtaining a mortgage. If the buyer applies for the loan type and terms specified in the contract and cannot obtain financing by the deadline, they can terminate and recover their earnest money.

Critical details buyers often miss:

The contingency typically specifies the loan type (conventional, FHA, VA, USDA), down payment percentage, and loan amount
The deadline — when you must either have your commitment letter or elect to terminate — is a hard date. Missing it can waive your protection
If you choose to waive the financing contingency (sometimes done in competitive offers), you're accepting the risk that if your loan falls through, you may lose your earnest money
Pre-approval before you go under contract substantially reduces the risk of financing contingency issues

Inspection / Due Diligence Contingency

The inspection contingency gives buyers the right to conduct inspections (general home inspection, radon, sewer scope, wood-destroying organisms, etc.) within a defined period — typically 7–14 days — and to negotiate repairs, a price reduction, or terminate if the inspection reveals unacceptable conditions.

In the GAR contract, the inspection period is a "right to terminate" window, not a guarantee that the seller will make repairs. Buyers can:

Accept the property as-is
Request repairs via a "Exhibit B" amendment (list of specific items) or a dollar credit at closing
Negotiate a price reduction in lieu of repairs
Terminate and receive their earnest money back

As a licensed Georgia contractor (License #RBQA006428), I review inspection reports with buyers and help them distinguish between significant structural/mechanical issues worth negotiating and cosmetic items not worth risking a deal over. In a competitive west Atlanta market, knowing which items to push on and which to accept is a real advantage.

Appraisal Contingency

The appraisal contingency protects buyers when the property appraises below the purchase price. If the home appraises at $340,000 but the agreed purchase price is $360,000, buyers face a gap: their lender will only lend based on the appraised value, so the buyer must come up with $20,000 more cash — or renegotiate.

Options when there's an appraisal gap:

Seller reduces purchase price to appraised value
Buyer pays the gap in cash (buyer brings extra cash to closing)
Buyer and seller split the gap
Buyer terminates under the appraisal contingency and recovers earnest money

In competitive markets, sellers sometimes ask buyers to waive the appraisal contingency or agree to cover a specified gap amount. This shifts risk to the buyer — understand what you're accepting before agreeing.

Other Key GAR Contract Provisions

Closing Date

The closing date is a target, not always a hard deadline. The GAR contract specifies whether time is "of the essence" — meaning the parties have agreed that missing the closing date by even one day constitutes a breach. When time is NOT of the essence (more common in standard transactions), the parties typically have a reasonable window to close even if the target date slips.

Financing and title issues are the most common causes of closing date delays. Having your mortgage fully processed and your title company scheduled early reduces the risk of last-minute date issues.

Property Condition and Disclosures

Georgia requires sellers to complete the Seller's Property Disclosure form. This disclosure covers known material defects — roof condition, HVAC history, water intrusion, structural issues, pest history, and other items affecting the home's condition or value. Sellers who knowingly fail to disclose material defects face legal liability.

Important buyer note: the disclosure covers what the seller knows, not necessarily everything wrong with the property. This is why independent inspection — not reliance on the seller's disclosure alone — is the right approach to due diligence.

Personal Property vs. Fixtures

The GAR contract specifies what's included in the sale (real property and fixtures) vs. what the seller can take (personal property). Standard fixtures — built-in appliances, light fixtures, ceiling fans, window treatments, garage door openers, security system hardware — are typically included. Freestanding appliances (refrigerator, washer/dryer) may or may not be included, and this is negotiated.

If a specific item matters to you (the refrigerator, a mounted TV, the ride-on mower in the garage), spell it out explicitly in the contract. Disputes over personal property at closing are common and entirely preventable.

HOA Addendum

For properties in HOA communities, the GAR contract includes an HOA addendum that requires the seller to provide HOA documents — bylaws, rules, financial statements, meeting minutes — to the buyer during the inspection period. Buyers have the right to review these documents and terminate if they find objectionable provisions (high special assessments, pending litigation, financial instability of the HOA).

Review HOA documents seriously. Pending special assessments can add thousands to your cost of ownership. HOA rules that restrict rentals, exterior modifications, or pet ownership matter if those activities are important to you.

Working with an Agent Who Knows the GAR Contract

The GAR contract has evolved over years and the 2024/2025/2026 versions have specific updates to agency relationships (following the NAR settlement), buyer agent compensation, and several other provisions. An experienced agent who works in Georgia regularly understands not just what the standard language says, but how specific provisions play out in practice in the local market.

I represent buyers and sellers across Douglas, Paulding, Cobb, Carroll, and surrounding counties. If you're preparing to make or receive an offer and want to understand what you're signing, reach out here — I'll walk through any provision of the contract in plain language before you commit.

GAR Contract Explained: Georgia's Purchase and Sale Agreement for Home Buyers in 2026