A new statute recently passed by the Georgia legislature will permit condominium developers to use a portion of the buyer's earnest money for the construction and development of the property in certain circumstances.
Beginning July 1, 2006, if the contract with the buyer so provides and the purchase price of the condominium unit is at least $150,000, the seller may withdraw and use any earnest money in excess of one percent (1%) of the purchase price once construction of the improvements has commenced. The money must be used for the actual construction and development of the condominium property and may not be used for salaries, commissions, expenses of real estate licensees or advertising purposes. In addition, any contract permitting the use of advance payments for construction must contain a specific disclaimer regarding this right on the first page of the contract and must be initialed by the buyer.
A new statute recently passed by the Georgia legislature will permit condominium developers to use a portion of the buyer's earnest money for the construction and development of the property in certain circumstances.
