Yes it’s that majic time of the year when taxes are on our minds. For everyone in Georgia that purchased a home in 2006 why not save a little on 2007 real estate taxes. If the home you purchased is your primary residence you are entitled to a Homestead Exemption. Check with your county tax assessors office and file for it. You only have to file once, then the Homestead Exemption remains for as long as you own the home. Tax Reduction, now that’s a novel concept.

It is now more important than ever to have a Qualified REALTOR represent you when buying real estate in Atlanta. As we welcome in the New Year we also are greeted by a new revised contract from the Georgia Association of REALTORS. The new contract contains several significant changes which could, if administered by an uneducated representative, cost the buyer a substantial amount of money.

The most significant change in the contract revision pertains to the Method of Payment. In the past a buyer’s mortgage company had up until the day of closing to obtain loan approval. The new contract stipulates that a negotiated Financing Contingency Period must be adhered to. Should the buyer not be able to obtain the financing described in the contract, it is the buyer’s responsibility to present the seller with a loan denial letter from the lender in the allotted time frame. Should this letter not be presented to the seller in the allotted time frame the financing contingency is removed and the loan is deemed approved. This change also makes it imperative that buyer’s only work with mortgage companies that deliver on their promises. A trained competent buyer’s agent will be able to help advise on mortgage companies that can deliver as well as helping buyer’s understand the proper time frames required to obtain mortgage approval.

What would a real estate contract be without a section on inspections? While much of this section remains intact from the previous contract, language has been added in the 2007 revision making it the buyer’s responsibility to also inspect the neighborhood for conditions which could affect the property. Once again by utilizing the services of a Qualified REALTOR prospective buyers will gain from the REALTORS knowledge of adverse conditions.

In the past it has been the responsibility of the seller to provide an “Official Georgia Wood Infestation Report” better know as a termite letter. The new contract now makes this the responsibility of the buyer to obtain this letter. It is now considered another inspection item. A clear termite letter is required by mortgage companies as a condition of closing and needs to be handled during the inspection time frame negotiated in the contract.

The “Lead-Based Paint” section of the contract has been addressed in order to clear up confusion from the previous contract. Rather than being addressed primarily in the “Seller’s Property Disclosure Statement”, Lead-Based Paint is now treated as any other materially adverse condition and may be included in the right to request repairs. For any home constructed prior to 1978 a Lead-Based Paint disclosure form is to be attached to the contract with the seller making the appropriate disclosures.

Other areas of the contract have been revised from a more organizational standpoint and include earnest money, seller contributions toward closing costs, closing date extensions, closing attorney selection, due diligence period and notification methods.

What does all of this mean to a prospective buyer? Via a cooperative sales arrangement, when a seller lists their home for sale with a REALTOR they are agreeing to pay a buyer’s agent a commission to assist in the sale of the home. What this means to prospective buyer’s is that the services of a buyer’s agent come without a cost to the buyer. With the 2007 revisions to the Georgia Association of REALTORS contract it just makes sense to utilize the services of a Qualified REALTOR.