Q: What is a special stipulation section in a purchase and sale agreement in a residential real estate transaction?

A: Generally the purchase and sale agreement for a residential property is a standard form prepared by a real estate agent or an attorney that usually contains all the relevant terms between a buyer and a seller that are applicable in a residential real estate transaction. The special stipulation section contains specific instructions written into a contract that are unique to the buyer and seller in a particular closing transaction. The special stipulation section to an agreement would cover any special request by a buyer to a seller to perform or provide the buyer with anything not included in the terms of the standard form agreement.

For example, the special stipulation section to an agreement would likely include, among other things, seller's closing cost concessions; a provision for the seller to provide the buyer with a home warranty; or a list of repairs to be completed by the seller before closing. The buyer should make sure that any oral promise made by the seller, or any special request made by the buyer, is agreed to in writing and is included in the special stipulation section of the purchase and sale agreement. When purchasing residential real estate, the buyer should take time to do all the necessary due diligence — such as an inspection — before closing. The buyer should make sure all of the special stipulations or conditions that are agreed upon are included in the purchase and sale agreement.

This column is designed to provide information in regard to the subject matter covered. It is not intended to render legal advice.

Q: What is a second mortgage?

A: A mortgage loan made against equity in a home already securing a first mortgage. It's usually to make home improvements or for some other related purpose.

Have a question you would like answered in this column? Please contact Jim Scavo at jscavo@wslaw.net.

— By Patrick I. Lucas, associate, Weinstock & Scavo, PC in Atlanta. plucas@wslaw.net.