Georgia real estate transaction rules

Written buyer agency / buyer agreement: when it must be signed and what it must say

A written “brokerage engagement” is required for a buyer to be a client; buyers can also work as unrepresented “customers.”

• Under BRRETA, an agency relationship exists only by the client's written authority. A “brokerage engagement” is defined as a written contract in which the buyer becomes the broker's client (O.C.G.A. § 10-6A-3(1), (4), (6)).
• A buyer who has not signed a brokerage engagement is a “customer.” The broker may still perform ministerial acts for a customer under a verbal or written agreement, but does not represent them (O.C.G.A. § 10-6A-3(8)).
• Every brokerage engagement must tell the client what kinds of agency relationships the broker offers, any known conflicting relationships, the broker's compensation and whether it will be shared with other brokers, and the broker's confidentiality obligations (O.C.G.A. § 10-6A-10(a)).
• Since January 1, 2024 (SB 90), a brokerage engagement cannot claim to run with the land, cannot be assigned without the owner's notice and agreement (with limited exceptions), and cannot create a recordable lien on residential property (O.C.G.A. § 10-6A-10(b)).
• The sections we reviewed do not set a statutory “sign before touring” deadline. The requirement that MLS participants sign a written agreement with a buyer before touring comes from the 2024 NAR settlement practice changes and MLS rules, not from Georgia statute.
• GAR's exclusive buyer agreement (F110) reflects the statute. A notice at the top says state law bars a broker from representing a buyer as a client without a written agreement. The form states that compensation is negotiable and not set by law (¶ A.4(a)). The buyer can direct the broker to ask the seller or listing broker to pay some or all of it, and any amount they pay reduces what the buyer owes dollar for dollar (¶ A.4(d)).
• In F110, the parties fill in the start and end dates. The form sets no default length. If the buyer is under contract when the term ends, the agreement extends through that closing (¶ B.2(a)). The parties also fill in a “protected period” after the agreement ends, during which compensation may still be owed on certain properties (¶¶ A.4(g), B.4(d)).
• GAR's 2026 forms index also lists a non-exclusive buyer agreement (F113), an agreement to work with a buyer as a customer (F116), and a Pre-Showing Compensation Agreement (F258). We have not reviewed those forms. GAR forms are a trade association's forms, not state law, and no party is required to use them.
• 2025–26 statute changes: none found in the BRRETA sections we reviewed. The most recent substantive amendment we found is SB 90, effective January 1, 2024.

Are escalation clauses allowed, and who may draft them?

No GAR escalation form or standard stipulation exists in the 2026 package. Agents draft their own as a special stipulation to the GAR Purchase and Sale Agreement.

• GAR's 2026 Forms Index and 2026 Special Stipulations Index (both revised 06/01/26) contain no escalation form, exhibit, or pre-written escalation stipulation.
• A practicing Georgia broker confirmed (2026-10-19) that escalation terms are commonly written by agents as special stipulations on the GAR Purchase and Sale Agreement (F201). This describes common practice, not a published rule.
• Under F201, special stipulations control over the form's exhibits and main body if they conflict (¶ C.4(p)(3)). If a broker writes a special stipulation, the party it was written for confirms that it reflects their intent, accepts it as their own, and agrees to hold that broker harmless for it (¶ C.4(p)(6)). Because a stipulation can override the printed form, its wording matters.
• We found no Georgia statute or GREC rule that specifically addresses escalation clauses. Under Georgia law, preparing legal instruments for others is generally the practice of law (see the attorney-closing section). How that applies to agent-written stipulations is a legal question that we have not verified. Not verified yet.
• ContractRules does not provide or suggest clause language. Talk to your broker or a Georgia real estate attorney before using an escalation stipulation.

Must a licensed attorney handle the closing?

Yes. A licensed Georgia attorney must close the transaction.

• The Supreme Court of Georgia approved UPL Advisory Opinion 2003-2 in 2003. It held that closing a real estate transaction, or preparing a deed of conveyance or facilitating its signing for someone else, is the unauthorized practice of law unless done by a duly licensed Georgia attorney.
• The Court also rejected “witness-only” closings by notaries or signing agents.
• GAR's Purchase and Sale Agreement reflects this. The parties name a closing law firm, and the buyer has the right to select it, subject to the mortgage lender's approval (¶¶ A.5, B.5).
• Under F201, the closing attorney represents the mortgage lender when the buyer is financing. In a cash deal, the attorney represents the buyer for a listed set of closing tasks: preparing closing documents, working to clear title, conducting the closing, disbursing funds, recording the deed, and issuing the owner's title policy. Other legal work, such as certifying title to the buyer, requires a separate engagement (¶ B.5).

Who holds the deposit and how fast it must be deposited

The holder deposits earnest money within 5 banking days under the GAR contract. Broker holders must use a GREC-registered trust account.

• GREC Rule 520-1-.08: affiliated licensees must turn trust funds over to their broker as soon after receipt as practicably possible. Unless the parties agree otherwise in writing, the broker must promptly deposit the funds in a federally insured trust account that is registered with the Commission.
• The GREC rule does not set a fixed number of days. The deadline in practice comes from the contract. Under the GAR Purchase and Sale Agreement, the holder deposits earnest money within five banking days after the Binding Agreement Date, or within five banking days after receiving it if it arrives later. Banking days are Monday through Friday, excluding federal holidays (¶¶ B.6, C.5(a)).
• The holder is named in the contract. It may be a broker or the closing attorney. If the closing attorney holds the money, GAR requires an attached exhibit (F510) and an escrow agreement signed by the attorney (F511) (¶ A.6).
• If the buyer's earnest money is late or the payment bounces, the holder notifies both parties and the buyer has three banking days to cure. Under the June 1, 2026 revision, the holder must send a second notice if the buyer doesn't cure. The seller then has seven days to terminate, or that right is waived (¶ B.6).
• The holder disburses at closing, on the parties' later written agreement, on a court or arbitrator's order, or in certain cases where no binding agreement was formed. The holder may also disburse based on a reasonable interpretation of the contract after giving all parties 10 days' notice, but may not split the money between buyer and seller (¶ B.7(b)). The buyer's broker is authorized to receive notices about earnest money disbursement for its client even after the contract ends, except in dual agency (¶ C.1(c), revised June 1, 2026).
• These are terms of a GAR form, a trade association's contract, not state law. Parties can change them.

Can one broker represent both sides, and on what terms?

Allowed only with the written consent of all clients. Designated agency is also recognized.

• A broker may act as a dual agent only with the written consent of all clients. The consent must describe the transactions covered, explain that the clients' interests could be different or adverse, explain what the dual agent will and will not disclose, disclose any material relationships, and state that consent is voluntary and not required (O.C.G.A. § 10-6A-12(a)).
• Once a client signs a written consent that meets these requirements, the consent is conclusively deemed given and informed (O.C.G.A. § 10-6A-12(b)).
• Each brokerage must adopt an office policy that either permits or rejects disclosed dual agency (O.C.G.A. § 10-6A-12(f)).
• BRRETA also defines “designated agents”: licensees assigned to represent only one client in the transaction (O.C.G.A. § 10-6A-3(9)).
• GAR's forms track the statute. The buyer agreement (F110) has the buyer choose whether to consent to dual agency and includes the statutory disclosures (¶¶ A.3(b), B.3(b)). The Purchase and Sale Agreement (F201) identifies each broker's role (client, customer, dual agent, or designated agent) and includes dual-agency and designated-agency disclosures (¶¶ A.10, B.10(a)). For non-GAR contracts, GAR's Agency Exhibit (F119) covers the same disclosures, the designated-agent assignment, and material relationships.

Key required seller disclosures

Georgia is a caveat emptor (buyer beware) state. Brokers have statutory disclosure duties, and the GAR contract makes the seller disclose known hidden defects. No statute was found requiring a disclosure form.

• A broker engaged by a seller must disclose to all parties any adverse material facts about the property's physical condition (such as material defects or environmental contamination) that the broker actually knows and a buyer could not discover with a reasonably diligent inspection (O.C.G.A. § 10-6A-5(b)(1)).
• The broker must also disclose known adverse physical conditions within one mile of the property that the buyer could not discover by a diligent inspection or by reviewing reasonably available public records (O.C.G.A. § 10-6A-5(b)(2)).
• In the GAR Purchase and Sale Agreement, the property is sold as-is unless the parties agree otherwise. The seller agrees to disclose known latent or hidden defects that a reasonably careful inspection wouldn't reveal (¶¶ B.8(a), B.8(f)).
• GAR's Seller's Property Disclosure Statement (F301) is an optional GAR exhibit. It describes caveat emptor as Georgia law, says the seller must disclose known hidden defects even in an as-is sale, and explains that “no” answers are not a warranty. Its topics include structure, systems, sewer and plumbing, roofs, flooding and water intrusion, soil and boundaries, termites, environmental issues, litigation and insurance, and a fixtures checklist. The June 1, 2026 revision added questions on sewer or septic backups and interior water damage (¶¶ C.6(i), C.6(k)).
• We found no Georgia statute requiring sellers to complete a specific disclosure form. GAR forms are a trade association's forms and are not legally required. Whether the seller's duty to disclose comes from case law, and how far it reaches, is not verified yet from a primary source.
• Federal rule (all states): for most housing built before 1978, sellers must give the federal lead-based paint disclosure.

The standard inspection, due diligence, or option period in the common state form

Negotiated. The GAR contract leaves the number of days blank and treats the period as an option to terminate.

• In the GAR Purchase and Sale Agreement, the parties fill in the length of the Due Diligence Period, counted from the Binding Agreement Date. The form has no default length (¶ A.8(a)). The Binding Agreement Date counts as day zero (¶ C.5(i)).
• The period works as an option. The buyer pays $10 in nonrefundable option money, plus any additional option money the parties agree to. Additional option money is not refundable unless the seller defaults, and the parties choose whether it is credited toward the price (¶ A.8(b)).
• Before the period ends, the buyer may terminate by notice for any reason or no reason and get the earnest money back. During the period, the buyer may also seek an amendment to address concerns. If the buyer doesn't terminate, the buyer accepts the property as-is, subject to any agreed amendment (¶ B.8(e)).
• For homes built before 1978, F201 separately gives a lead-hazard evaluation right with its own default of 10 days, unless waived in the Lead-Based Paint Exhibit (¶ B.9).
• These are terms of GAR's form, which is not state law. Verified against the 2026 printing as revised June 1, 2026.