🧰 Save the Deal Toolkit

When the Contract Is Strained but Not Broken - Options are the Key to Success

Let's look at:

🚨 Why Deals Fail

🛠️ Save-the-Deal Strategies

Insurance Issues - Master Insurance

🚨 Why Deals Fail

• Insufficient coverage

• Policy deductible exceeds lender limits

• Policy expiration close in time to closing

🛠️ Save-the-Deal Strategies - Seller Broker

Checking the policy should be part of the listing process.

• Sometimes changes can be requested of the association to make the policy more acceptable prior to accepting contracts.

• Any financed buyer can be accepted after the specifics of the insurance provided are confirmed sufficient with the buyer's lender.

• Sometimes the best buyer may be a cash buyer if the policy issues will not be acceptable to lenders.

• A policy that will expire close in time to closing will not be acceptable to a lender. The association needs to finalize the new policy. Both agents should work to make sure that happens.

🛠️ Save-the-Deal Strategies - Buyer Broker

Insurance issues should be confirmed during the Due Diligence period, not in the days prior to closing.

• All of the insurance information should be requested at the very beginning.

• The buyer should confirm with the lender at the outset that the master policy will be acceptable and whether they can / must cover any requirements with their own individual policy.

• A policy that will expire close in time to closing will not be acceptable to a lender. The association needs to finalize the new policy. Both agents should work to make sure that happens.

Insurance Issues - Individual Insurance

🚨 Why Deals Fail

• The roof is too old. (20 years, sometimes even less)

• Insufficient coverage

• Policy deductible exceeds lender limits

• Excessive claims

• The insurance company will only issue a binder, not a policy

🛠️ Save-the-Deal Strategies

Insurance issues should be confirmed during the Due Diligence period, not in the days prior to closing.

• Cash buyer should make sure they are comfortable.

• Borrower buyers need to make sure their lender will also accept the insurance.

Lender-Required Repairs on Conventional Loans

🚨 Why Deals Fail

• Safety or habitability items flagged late

• Seller unwilling to perform repairs

🛠️ Save-the-Deal Strategies

• Negotiate for actual repairs and not money in lieu of repairs for anything that will be an issue for the lender.

• Consider a special stipulation that the seller will pay up to $_______ in lender required repairs with the ability to negotiate if the lender-required repairs exceed this amount. See GAR Special Stip - SS 524 LENDER REQUIRED REPAIRS.

Condo Issues

🚨 Why Deals Fail

• Deferred maintenance that affects habitability, health or safety

• Insufficient reserve funding

🛠️ Save-the-Deal Strategies

• The Seller Broker should check for issues during the listing.

• The Buyer Broker should make sure the buyer is checking these issues at the outset during the Due Diligence period.

Carving Out Contingencies When Due Diligence Isn’t Enough

🚨 Why Deals Fail

• Buyer needs to confirm something that cannot be resolved during the Due Diligence period

• Due Diligence inspections reveal further issues that need more investigation

🛠️ Save-the-Deal Strategies

• The buyer can ask for more days of Due Diligence. If the seller is willing, that is the best approach and provides the most flexibility for the buyer.

• The seller is best protected with a shorter Due Diligence period. Giving the buyer a contingency for the additional issue gives the buyer less ability to exit the contract for unrelated reasons - another property they like better, for example.

• The seller can also negotiate a kick-out or option money so that they have more options or compensation if the deal does not close.

Closing Date Extension When 8 Days is Not Enough

Under the GAR contracts, the buyer can unilaterally extend the closing if their lender is not ready. Sometimes the buyer needs more than 8 days. In these cases, they have to ask the seller to agree to move the closing date.

🚨 Why Deals Fail

• The seller is not willing to give the buyer additional days because they have lost faith and trust

• The buyer is normally past all contingencies and will lose their earnest money if they fail to close

🛠️ Save-the-Deal Strategies

• The buyer can offer or the seller can request money in exchange for delaying the closing.

• This money can compensate the seller for their costs.

• This money can prove to the seller that the buyer is committed and willing to put their money where their mouth is.

Getting a Second Opinion

🚨 Why Deals Fail

• A survey shows an issue and the seller is not sure it is right

• The inspector flags a problem and the seller feels they may be mistaken

• Disagreement over seriousness of issue

🛠️ Save-the-Deal Strategies

• Seller offers to pay for a second opinion.

• Parties agree in advance how results will be handled.

• They use neutral third-party professional.

Neither Side Can or Will Pay for the Resolution

Before you terminate, make sure you have explored all of the options.

🚨 Why Deals Fail

• Stalemate over money or repairs

• Each side feels “right”

🛠️ Save-the-Deal Strategies

• Split repair costs

• Half credit / half repair

• Adjust price and closing costs

Automatic Termination Traps in Georgia Contracts

🚨 Why Deals Fail

• Deadlines expire silently

• Parties misunderstand “automatic” provisions

🛠️ Save-the-Deal Strategies

• Calendar every deadline, including automatic terminations, at binding agreement.

• Amend before expiration, not after.

• Reinstate the contract if both sides still want to move forward.

🔗 Helpful Links

​Fannie Mae Master Insurance Guidelines​

​Freddie Mac Individual and Master Insurance Guidelines​

​FHA Condo Approval Look Up​

​VA Condo Approval List​

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REALsmart Real Estate School

Attorney | REALTOR® | CE Instructor

📍 Based in Georgia | Teaching Statewide