Due Diligence, Simplified

The Georgia Association of Realtors (GAR), led by legal counsel Seth Weissman of Weissman, Nowack, Curry & Wilco, provides the forms used in the overwhelming majority of real estate transaction in Georgia. In particular, the standard Purchase and Sale Agreement contains a ‘due diligence’ paragraph which is often misunderstood by buyers and sellers alike. In truth, it’s very simple and tends to facilitate a smooth transaction for all parties.

As with most legal documents, the GAR Purchase and Sale Agreement has evolved over time. Prior versions attempted to assign some responsibilities to the buyer (i.e. home inspection, loan acquisition, etc) while assigning others (termite clearance, septic system certification, boundary marking, etc) to the seller. This sometimes resulted in misunderstandings between the parties, with important milestones going unmet or being performed hurriedly, just prior to closing.