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NOTE: THE FORMS AVAILABLE IN THIS ARCHIVE ARE SUBJECT TO OUR TERMS OF USE AND ARE NOT A SUBSTITUTE FOR THE ADVICE OF AN ATTORNEY. LEGAL ADVICE OF ANY NATURE SHOULD BE SOUGHT FROM COMPETENT LEGAL COUNSEL IN THE RELEVANT JURISDICTION. THESE FORMS ARE PROVIDED "AS IS." Main Menu > Legal Forms Archive
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REAL ESTATE PURCHASE
CONTRACT (FARM AND RANCH) STATE OF
_____________________ 1.
PARTIES: _______________________________________________________________________
(Seller) agrees to sell and convey to __________________________________________________________________ 2. PROPERTY: The land, improvements, accessories
and crops are collectively referred to as the "Property". A. LAND:
The land situated in _________________________________ [county, state],
described as follows: ________________________________________________________________________________________ B.
IMPROVEMENTS: (1) FARM and RANCH IMPROVEMENTS: The following permanently installed and built-in items, if any: windmills, tanks, barns, pens, fences, gates, sheds, outbuildings, and corrals. (2)
RESIDENTIAL IMPROVEMENTS: The house, garage, and all other fixtures and
improvements attached to the above-described real property, including without
limitation, the following permanently installed and built-in items, if any: all
equipment and appliances, valances, screens, shutters, awnings, wall-to-wall
carpeting, mirrors, ceiling fans, attic fans, mail boxes, television antennas
and satellite dish system and equipment, heating and air-conditioning units,
security and fire detection equipment, wiring, plumbing and lighting fixtures,
chandeliers, water softener system, kitchen equipment, garage door openers,
cleaning equipment, shrubbery, landscaping, outdoor cooking equipment, and all
other property owned by Seller and attached to the above described real
property. C.
ACCESSORIES: (1) FARM
AND RANCH ACCESSORIES: The following described related accessories: (check items of conveyed accessories:) _____portable buildings _____hunting blinds _____game feeders livestock feeders and
troughs irrigation equipment _____fuel tanks _____submersible pumps _____pressure tanks _____corrals _____gates
_____chutes _____other:________________________________________________________ (2)
RESIDENTIAL ACCESSORIES: The following described related accessories, if any:
window air conditioning units, stove, fireplace screens, curtains and rods,
blinds, window shades, draperies and rods, controls for satellite dish system,
controls for garage door openers, entry gate controls, door keys, mailbox keys,
above ground pool, swimming pool equipment and maintenance accessories, and
artificial fireplace logs. D. CROPS:
Unless otherwise agreed in writing, Seller has the right to harvest all growing
crops until delivery of possession of the Property. E.
EXCLUSIONS: The following improvements, accessories, and crops will be retained
by Seller and excluded: F.
RESERVATIONS: Seller reserves the following mineral, water, royalty, timber, or
other interests: 3. SALES PRICE: A. Cash portion of Sales Price payable by Purchaser at closing
...................... $___________________ B. Sum of all financing described below (excluding any loan
funding C. Sales Price (Sum of A and B) ............................................................... $___________________ D. The
Sales Price [check one:] _____will
_____will not be adjusted based on the survey required by Paragraph 6C.
If the Sales Price is adjusted, the Sales Price will be calculated on the basis
of $___________________ per acre. If the Sales Price is adjusted by more than
10%, either party may terminate this contract by providing written notice to
the other party within __________ days after the terminating party receives the
survey. If neither party terminates this contract or if the variance is 10% or
less, the adjustment will be made to the amount in [check one:] _____3A _____3B _____proportionately to 3A and 3B. 4. FINANCING: The portion of Sales Price not
payable in cash will be paid as follows: [Check
applicable items below.] _____ A. THIRD PARTY FINANCING: One
or more third party mortgage loans in the total amount of $___________________.
If the Property does not satisfy the lenders' underwriting requirements for the
loan(s), this contract will terminate and the earnest money will be refunded to
Purchaser.
_____ (1) This contract is subject to Purchaser being approved for the financing described in the attached Third Party Financing Condition Addendum. _____
(2) This contract is not subject to Purchaser
being approved for financing. _____ B. ASSUMPTION: The assumption of the unpaid principal balance of
one or more promissory notes described in the attached Loan Assumption Addendum. _____ C. SELLER FINANCING: A promissory note from Purchaser to Seller of
$___________________ bearing _______% interest per annum, secured by
[choose the appropriate
instrument authorized within the state:] _____ mortgage, or _____ vendor's
and deed of trust liens, and containing the terms and conditions described in
the attached Seller Financing Addendum.
If an owner policy of title insurance is furnished, Purchaser shall furnish
Seller with a mortgagee policy of title insurance. 5. EARNEST MONEY: Upon execution of this contract by
both parties, Purchaser shall deposit $___________________ as earnest money with ___________________________________________________,
as escrow agent, at __________________________________________________________________(address).
Purchaser shall deposit additional earnest money of $___________________ with
escrow agent within ____________ days after the effective date of this
contract. If Purchaser fails to deposit the earnest money as required by this
contract, Purchaser will be in default. 6. TITLE POLICY AND SURVEY: A. TITLE
POLICY: Seller shall furnish to Purchaser at [check
one:] _____Seller’s _____Purchaser’s expense an owner policy of title
insurance (Title Policy) issued by: ____________________________________________________
(Title Company) in the amount of the Sales Price, dated at or after closing,
insuring Purchaser against loss under the provisions of the Title Policy, subject
to the promulgated exclusions (including existing building and zoning
ordinances) and the following exceptions: (1) The
standard printed exception for standby fees, taxes and assessments. B.
COMMITMENT: Within 20 days after the Title Company receives a copy of this
contract, Seller shall furnish to Purchaser a commitment for title insurance
(Commitment) and, at Purchaser's expense, legible copies of restrictive covenants
and documents evidencing exceptions in the Commitment (Exception Documents)
other than the standard printed exceptions. Seller authorizes the Title Company
to mail or hand deliver the Commitment and Exception Documents to Purchaser at
Purchaser's address shown in Paragraph 21. If the Commitment and Exception
Documents are not delivered to Purchaser within the specified time, the time for
delivery will be automatically extended up to 15 days or the Closing Date,
whichever is earlier. C. SURVEY: The survey must be made by a registered professional land surveyor acceptable to the Title Company and any lender. [Check one box only:] _____ (1) Within __________ days after the effective date of this
contract, Seller, at Seller’s expense, shall furnish a new survey to Purchaser. _____ (2) Within __________ days after the effective date of this
contract, Purchaser, at Purchaser’s expense, shall obtain a new survey. _____ (3) Within __________ days after the effective date of this
contract, Seller shall furnish Seller's existing survey of the Property to Purchaser and the Title Company, along with Seller's affidavit acceptable to the
Title Company for approval of the survey. The existing Survey [check one:] _____will _____will not be recertified to a date
subsequent to the effective date of this contract at the expense of [check one:] _____Purchaser _____Seller. If the existing survey is not
approved by the Title Company or Purchaser's lender, a new survey will be obtained
at the expense of [check one:] _____Purchaser
_____Seller no later than 3 days prior to the Closing Date. _____ (4) No survey is required. D.
OBJECTIONS: Within __________ days after Purchaser receives the Commitment,
Exception Documents and the survey, Purchaser may object in writing to (i) defects,
exceptions, or encumbrances to title: disclosed on the survey other than items
6A(1) through (5) above; disclosed in the Commitment other than items 6A(1)
through (6) above; (ii) any portion of the Property lying in the 100 year flood
plain as shown on the current Federal Emergency Management Agency map; or (iii)
any exceptions which prohibit the following use or activity: E.
EXCEPTION DOCUMENTS: Prior to the execution of the contract, Seller has
provided Purchaser with copies of the Exception Documents listed below or on the
attached exhibit. Matters reflected in the Exception Documents listed below or
on the attached exhibit will be permitted exceptions in the Title Policy and
will not be a basis for objection to title: Document Date
Recording
Reference _________________________________________ _____________ __________________ F. SURFACE
LEASES: Prior to the execution of the contract, Seller has provided Purchaser with copies of
written leases and given notice of oral leases (Leases) listed below or on the attached
exhibit. The following Leases will be permitted: exceptions in the Title Policy
and will not be a basis for objection to title: G. TITLE NOTICES: (1)
ABSTRACT OR TITLE POLICY: Broker advises Purchaser to have an abstract of title
covering the Property examined by an attorney of Purchaser’s selection, or Purchaser
should be furnished with or obtain a Title Policy. If a Title Policy is
furnished, the Commitment should be promptly reviewed by an attorney of Purchaser’s
choice due to the time limitations on Purchaser’s right to object. (2)
STATUTORY TAX DISTRICTS: If the Property is situated in a utility or other
statutorily created district providing water, sewer, drainage, or flood control
facilities and services, state law may require Seller to deliver and Purchaser to
sign the statutory notice relating to the tax rate, bonded indebtedness, or
standby fee of the district prior to final execution of this contract. (Consult
with an attorney if you are unclear on this requirement.) (3) TIDE
WATERS: If the Property abuts the tidally influenced waters of the state, state
law may require a notice regarding coastal area property to be included in the
contract. An addendum containing the notice promulgated by the state or
required by the parties must be used.
(Consult with an attorney if you are unclear on this requirement.) (4)
ANNEXATION: If the Property is located outside the limits of a municipality,
Seller notifies Purchaser under that the Property may now or later be included in
the extraterritorial jurisdiction of a municipality and may now or later be
subject to annexation by the municipality. Each municipality maintains a map
that depicts its boundaries and extraterritorial jurisdiction. To determine if
the Property is located within a municipality’s extraterritorial jurisdiction
or is likely to be located within a municipality’s extraterritorial
jurisdiction, contact all municipalities located in the general proximity of the
Property for further information. (5)
UNIMPROVED PROPERTY LOCATED IN A CERTIFICATED SERVICE AREA OF A UTILITY SERVICE
PROVIDER: If the Property is located in a certificated service area of a
utility service provider and the Property does not receive water or sewer
service from the utility service provider on the date the Property is
transferred, state law may require a notice regarding the cost of providing
water or sewer services to the Property. An addendum containing the notice
promulgated by the state or required by the parties must be used. (6)
AGRICULTURAL DEVELOPMENT DISTRICT: The Property [check one:] _____is _____is not located in a agricultural development
district. 7. PROPERTY CONDITION: A.
INSPECTIONS, ACCESS AND UTILITIES: Purchaser may have the Property inspected by
inspectors selected by Purchaser and licensed by the state or otherwise permitted
by law to make inspections. Seller shall permit Purchaser and Purchaser’s agents access
to the Property at reasonable times. Seller shall pay for turning on existing
utilities for inspections. NOTICE:
Purchaser should determine the availability of utilities to the Property suitable
to satisfy Purchaser’s needs. B. SELLER'S
DISCLOSURE NOTICE (Notice): _____ (1) Purchaser has received the Notice _____ (2) Purchaser has not received the Notice. Within _________ days after
the effective date of this contract, Seller shall deliver the Notice to Purchaser.
If Purchaser does not receive the Notice, Purchaser may terminate this contract at any
time prior to the closing and the earnest money will be refunded to Purchaser. If
Seller delivers the Notice, Purchaser may terminate this contract for any reason
within 7 days after Purchaser receives the Notice or prior to the closing,
whichever first occurs, and the earnest money will be refunded to Purchaser. _____ (3) State law does not require this Seller to furnish the Notice. C. SELLER’S
DISCLOSURE OF LEAD-BASED PAINT AND LEAD-BASED PAINT HAZARDS is required by
Federal law for a residential dwelling constructed prior to 1978. D. ACCEPTANCE
OF PROPERTY CONDITION: Purchaser accepts the Property in its present condition;
provided Seller, at Seller’s expense, shall complete the following specific
repairs and treatments: E.
COMPLETION OF REPAIRS: Unless otherwise agreed in writing, Seller shall
complete all agreed repairs prior to the Closing Date. All required permits must
be obtained, and repairs must be performed by persons who are licensed or
otherwise permitted by law to provide such repairs. At Purchaser’s election, any
transferable warranties received by Seller with respect to the repairs will be
transferred to Purchaser at Purchaser’s expense. If Seller fails to complete any agreed
repairs prior to the Closing Date, Purchaser may do so and receive reimbursement
from Seller at closing. The Closing Date will be extended up to 15 days, if
necessary, to complete repairs. F. LENDER
REQUIRED REPAIRS AND TREATMENTS: Unless otherwise agreed in writing, neither
party is obligated to pay for lender required repairs, which includes treatment
for wood destroying insects. If the parties do not agree to pay for the lender
required repairs or treatments, this contract will terminate and the earnest
money will be refunded to Purchaser. If the cost of lender required repairs and
treatments exceeds 5% of the Sales Price, Purchaser may terminate this contract and
the earnest money will be refunded to Purchaser. G. ENVIRONMENTAL
MATTERS: Purchaser is advised that the presence of wetlands, toxic substances,
including asbestos and wastes or other environmental hazards, or the presence
of a threatened or endangered species or its habitat may affect Purchaser’s
intended use of the Property. If Purchaser is concerned about these matters, an
addendum promulgated by the state or required by the parties should be used. H. SELLER’S
DISCLOSURES: Except as otherwise disclosed in this contract, Seller has no
knowledge of the following: (1) any
flooding of the Property which has had a material adverse effect on the use of
the Property; I.
RESIDENTIAL SERVICE CONTRACTS: Purchaser may purchase a residential service
contract from a residential service company licensed by the state. If Purchaser
purchases a residential service contract, Seller shall reimburse Purchaser at
closing for the cost of the residential service contract in an amount not
exceeding $___________________ . Purchaser should review any residential service
contract for the scope of coverage, exclusions and limitations. The purchase of
a residential service contract is optional. Similar coverage may be purchased
from various companies authorized to do business in the state. J.
GOVERNMENT PROGRAMS: The Property is subject to the government programs listed
below or on the attached exhibit: 8. BROKERS' FEES: All obligations of the parties for
payment of brokers’ fees are contained in separate written agreements. 9. CLOSING: A. The
closing of the sale will be on or before ___________________, 20____, or within
7 days after objections to matters disclosed in the Commitment or by the survey
have been cured, whichever date is later (Closing Date). If either party fails
to close the sale by the Closing Date, the non-defaulting party may exercise
the remedies contained in Paragraph 15. B. At
closing: (1) Seller
shall execute and deliver a general warranty deed conveying title to the
Property to Purchaser and showing no additional exceptions to those permitted in
Paragraph 6, an assignment of Leases, and furnish tax statements or
certificates showing no delinquent taxes on the Property. (2) Purchaser
shall pay the Sales Price in good funds acceptable to the escrow agent. (3) Seller
and Purchaser shall execute and deliver any notices, statements, certificates,
affidavits, releases, loan documents and other documents required of them by
this contract, the Commitment or law necessary for the closing of the sale and
the issuance of the Title Policy. C. Unless
expressly prohibited by written agreement, Seller may continue to show the
Property and receive, negotiate and accept back up offers. D. All
covenants, representations and warranties in this contract survive closing. 10. POSSESSION: Seller shall deliver to Purchaser
possession of the Property in its present or required condition, ordinary wear
and tear excepted: [check one:] _____upon closing and funding _____according to a temporary residential
lease form promulgated by the state or other written lease required by the
parties. Any possession by Purchaser prior to closing or by Seller after closing
which is not authorized by a written lease will establish a tenancy at
sufferance relationship between the parties. Consult your insurance agent prior
to change of ownership or possession because insurance coverage may be limited
or terminated. The absence of a written lease or appropriate insurance coverage
may expose the parties to economic loss. 11. SPECIAL PROVISIONS: (Insert only factual statements and
business details applicable to the sale. State regulations may prohibit
licensees from adding factual statements or business details for which a
contract addendum or other form has been promulgated by the state for mandatory
use. Consult with an attorney if you are unclear on this requirement.) 12. SETTLEMENT AND OTHER EXPENSES: A. The
following expenses must be paid at or prior to closing: (1)
Expenses payable by Seller (Seller's Expenses): (a)
Releases of existing liens, including prepayment penalties and recording fees; release
of Seller’s loan liability; tax statements or certificates; preparation of
deed; one-half of escrow fee; and other expenses payable by Seller under this
contract. (b) Seller
shall also pay an amount not to exceed $___________________ to be applied in
the following order: Purchaser’s Expenses which Purchaser is prohibited from paying by
FHA, VA, state-coordinated veteran’s housing assistance programs, or other
governmental loan programs; Purchaser’s prepaid items; other Purchaser’s expenses. (2)
Expenses payable by Purchaser (Purchaser's Expenses): (a) Loan
origination, discount, buy-down, and commitment fees (Loan Fees). (b)
Appraisal fees; loan application fees; credit reports; preparation of loan
documents; interest on the notes from date of disbursement to one month prior
to dates of first monthly payments; recording fees; copies of easements and
restrictions; mortgagee title policy with endorsements required by lender;
loan-related inspection fees; photos, amortization schedules, one-half of
escrow fee; all prepaid items, including required premiums for flood and hazard
insurance, reserve deposits for insurance, ad valorem taxes and special
governmental assessments; final compliance inspection; courier fee, repair
inspection, underwriting fee and wire transfer, expenses incident to any loan,
and other expenses payable by Purchaser under this contract. B. Purchaser
shall pay Private Mortgage Insurance Premium (PMI), VA Loan Funding Fee, or FHA
Mortgage Insurance Premium (MIP) as required by the lender. C. If any expense
exceeds an amount expressly stated in this contract for such expense to be paid
by a party, that party may terminate this contract unless the other party
agrees to pay such excess. Purchaser may not pay charges and fees expressly
prohibited by FHA, VA, state-coordinated veteran’s housing assistance programs
or other governmental loan program regulations. 13. PRORATIONS AND ROLLBACK TAXES: A.
PRORATIONS: Taxes for the current year, interest, maintenance fees,
assessments, dues and rents will be prorated through the Closing Date. If taxes
for the current year vary from the amount prorated at closing, the parties
shall adjust the prorations when tax statements for the current year are
available. If taxes are not paid at or prior to closing, Purchaser shall pay taxes
for the current year. Rentals which are unknown at time of closing will be
prorated between Purchaser and Seller when they become known. B. ROLLBACK
TAXES: If this sale or Purchaser’s use of the Property after closing results in the
assessment of additional taxes, penalties or interest (Assessments) for periods
prior to closing, the Assessments will be the obligation of Purchaser. If Seller’s
change in use of the Property prior to closing or denial of a special use
valuation on the Property claimed by Seller results in Assessments for periods
prior to closing, the Assessments will be the obligation of Seller. Obligations
imposed by this paragraph will survive closing. 14. CASUALTY LOSS: If any part of the Property is
damaged or destroyed by fire or other casualty after the effective date of this
contract, Seller shall restore the Property to its previous condition as soon
as reasonably possible, but in any event by the Closing Date. If Seller fails
to do so due to factors beyond Seller’s control, Purchaser may (a) terminate this contract
and the earnest money will be refunded to Purchaser (b) extend the time for
performance up to 15 days and the Closing Date will be extended as necessary or
(c) accept the Property in its damaged condition with an assignment of
insurance proceeds and receive credit from Seller at closing in the amount of
the deductible under the insurance policy. Seller’s obligations under this
paragraph are independent of any obligations of Seller under Paragraph 7. 15. DEFAULT: If Purchaser fails to comply with this
contract, Purchaser will be in default, and Seller may (a) enforce specific
performance, seek such other relief as may be provided by law, or both, or (b)
terminate this contract and receive the earnest money as liquidated damages,
thereby releasing both parties from this contract. If, due to factors beyond
Seller’s control, Seller fails within the time allowed to make any non-casualty
repairs or deliver the Commitment, or survey, if required of Seller, Purchaser may
(a) extend the time for performance up to 15 days and the Closing Date will be
extended as necessary or (b) terminate this contract as the sole remedy and
receive the earnest money. If Seller fails to comply with this contract for any
other reason, Seller will be in default and Purchaser may (a) enforce specific
performance, seek such other relief as may be provided by law, or both, or (b)
terminate this contract and receive the earnest money, thereby releasing both
parties from this contract. 16. MEDIATION: Any dispute between Seller and
Purchaser related to this contract which is not resolved through informal
discussion [check one:] _____will will not be submitted to a mutually
acceptable mediation service or provider. The parties to the mediation shall
bear the mediation costs equally. This paragraph does not preclude a party from
seeking equitable relief from a court of competent jurisdiction. 17. ATTORNEY'S FEES: The prevailing party in any legal
proceeding related to this contract is entitled to recover reasonable
attorney’s fees and all costs of such proceeding incurred by the prevailing
party. 18. ESCROW: The escrow agent is not (a) a party
to this contract and does not have liability for the performance or
nonperformance of any party to this contract, (b) liable for interest on the
earnest money and (c) liable for the loss of any earnest money caused by the
failure of any financial institution in which the earnest money has been
deposited unless the financial institution is acting as escrow agent. At
closing, the earnest money must be applied first to any cash down payment, then
to Purchaser's Expenses and any excess refunded to Purchaser. If both parties make
written demand for the earnest money, escrow agent may require payment of
unpaid expenses incurred on behalf of the parties and a written release of
liability of escrow agent from all parties. If one party makes written demand
for the earnest money, escrow agent shall give notice of the demand by
providing to the other party a copy of the demand. If escrow agent does not
receive written objection to the demand from the other party within 30 days
after notice to the other party, escrow agent may disburse the earnest money to
the party making demand reduced by the amount of unpaid expenses incurred on
behalf of the party receiving the earnest money and escrow agent may pay the
same to the creditors. If escrow agent complies with the provisions of this
paragraph, each party hereby releases escrow agent from all adverse claims
related to the disbursal of the earnest money. Escrow agent's notice to the
other party will be effective when deposited in the U. S. Mail, postage
prepaid, certified mail, return receipt requested, addressed to the other party
at such party's address shown below. Notice of objection to the demand will be
deemed effective upon receipt by escrow agent. 19. REPRESENTATIONS: Seller represents that as of the
Closing Date (a) there will be no liens, assessments, or security interests
against the Property which will not be satisfied out of the sales proceeds
unless securing payment of any loans assumed by Purchaser and (b) assumed loans
will not be in default. If any representation of Seller in this contract is
untrue on the Closing Date, Purchaser may terminate this contract and the earnest
money will be refunded to Purchaser. 20. FEDERAL TAX REQUIREMENTS: If Seller is a "foreign
person," as defined by applicable law, or if Seller fails to deliver an
affidavit to Purchaser that Seller is not a "foreign person," then Purchaser
shall withhold from the sales proceeds an amount sufficient to comply with
applicable tax law and deliver the same to the Internal Revenue Service
together with appropriate tax forms. Internal Revenue Service regulations
require filing written reports if currency in excess of specified amounts is
received in the transaction. 21. NOTICES: All notices from one party to the
other must be in writing and are effective when mailed to, hand-delivered at,
or transmitted by facsimile as follows: To Purchaser at: To Seller at: ____________________________________ ____________________________________ Telephone: (_____)
____________________ Telephone: (_____) ____________________ 22. AGREEMENT OF PARTIES: This contract contains the entire
agreement of the parties and cannot be changed except by their written
agreement. Addenda which are a part of this contract are (check all applicable
boxes): _____
Third Party Financing Condition Addendum 23. TERMINATION OPTION: This paragraph will be a part of
this contract ONLY if both blanks are filled in and Purchaser has paid the Option
Fee. Purchaser has paid Seller $___________________ (Option Fee) for the
unrestricted right to terminate this contract by giving notice of termination
to Seller within __________ days after the effective date of this contract. If
Purchaser gives notice of termination within the time specified, the Option Fee
will not be refunded, however, any earnest money will be refunded to Purchaser. The
Option Fee [check one:] _____will
_____will not be credited to the Sales Price at closing. For the purposes of
this paragraph, time is of the essence; strict compliance with the time for
performance stated herein is required. 24. CONSULT AN ATTORNEY: Real estate licensees cannot give
legal advice. READ THIS CONTRACT CAREFULLY. If you do not understand the effect
of this contract, consult an attorney BEFORE signing. Purchaser’s Attorney is: Seller’s
Attorney is: ____________________________________ ____________________________________ Telephone: (_____)
____________________ Telephone: (_____) ____________________
____________________________________ ____________________________________ ____________________________________ ____________________________________
Receipt of $___________________
(Option Fee) in the form of ___________________ is acknowledged. ____________________________________ ____________________ Note: This addendum is only necessary if the parties have checked the option in Paragraph 4(A)(1) above. THIRD PARTY FINANCING
CONDITION ADDENDUM ___________________________________________________________________________ Purchaser shall apply promptly for all financing described below and make every reasonable effort to obtain financing approval. Financing approval will be deemed to have been obtained when the lender determines that Purchaser has satisfied all of lender's financial requirements (those items relating to Purchaser's assets, income and credit history). If financing (including any financed PMI premium) approval is not obtained within ______ days after the effective date, this contract will terminate and the earnest money will be refunded to Purchaser. Each note must be secured by an appropriate instrument authorized within the state, typically either (1) a mortgage or (2) vendor's and deed of trust liens. (Consult an attorney if you are unsure as to which instrument is appropriate for this transaction.) CHECK APPLICABLE BOXES: _____ A. CONVENTIONAL FINANCING: _____ C. VA GUARANTEED FINANCING: A VA guaranteed loan of not less than $______________
(excluding any financed Funding Fee), amortizable monthly for not less than _______
years, with interest not to exceed _______% per annum for the first _______ year(s)
of the loan with Loan Fees not to exceed _______% of the loan. VA
NOTICE TO PURCHASER: "It is
expressly agreed that, notwithstanding any other provisions of this contract,
the Purchaser shall not incur any penalty by forfeiture of earnest money or
otherwise or be obligated to complete the purchase of the Property described
herein, if the contract purchase price or cost exceeds the reasonable value of
the Property established by the Department of Veterans Affairs. The Purchaser
shall, however, have the privilege and option of proceeding with the
consummation of this contract without regard to the amount of the reasonable
value established by the Department of Veterans Affairs." If Purchaser elects to complete the purchase at an amount in excess of the reasonable value established by VA, Purchaser shall pay such excess amount in cash from a source which Purchaser agrees to disclose to the VA and which Purchaser represents will not be from borrowed funds except as approved by VA. If VA reasonable value of the Property is less than the Sales Price, Seller may reduce the Sales Price to an amount equal to the VA reasonable value and the sale will be closed at the lower Sales Price with proportionate adjustments to the down payment and the loan amount. PURCHASER: ____________________
____________________________________________
____________________________________________ SELLER: ____________________
____________________________________________
Note: This addendum is only necessary if the parties have checked the option in Paragraph 4(B) above.
LOAN ASSUMPTION ADDENDUM
___________________________________________________________________________ A. CREDIT DOCUMENTATION: Within _____ days after the effective date of this contract, Purchaser shall deliver to Seller the following: [check all applicable items:] _____credit report _____verification of employment, including salary _____verification of funds on deposit in financial institutions ____current financial statement to establish Purchaser's creditworthiness. Purchaser hereby authorizes any credit reporting agency to furnish to Seller at Purchaser's sole expense copies of Purchaser's credit reports. B. CREDIT APPROVAL: If Purchaser's documentation is not delivered within the specified time, Seller may terminate this contract by notice to Purchaser within 7 days after expiration of the time for delivery, and the earnest money will be paid to Seller. If the documentation is timely delivered, and Seller determines in Seller's sole discretion that Purchaser's credit is unacceptable, Seller may terminate this contract by notice to Purchaser within 7 days after expiration of the time for delivery and the earnest money will be refunded to Purchaser. If Seller does not terminate this contract, Seller will be deemed to have accepted Purchaser's credit. C. ASSUMPTION: _____ (1) The unpaid principal balance of a first lien promissory note payable to which unpaid balance at closing will be $________________. The total current monthly payment including principal, interest and any reserve deposits is $________________. Purchaser’s initial payment will be the first payment due after closing. _____ (2) The unpaid principal balance of a second lien promissory note payable to which unpaid balance at closing will be $________________. The total current monthly payment including principal, interest and any reserve deposits is $________________. Purchaser’s initial payment will be the first payment due after closing. Purchaser’s assumption of an existing note includes all obligations imposed by the deed of trust securing the note. If the unpaid principal balance(s) of any assumed loan(s) as of the Closing Date varies from the loan balance(s) stated above, the [check only one:] _____cash payable at closing _____Sales Price will be adjusted by the amount of any variance; provided, if the total principal balance of all assumed loans varies in an amount greater than $350.00 at closing, either party may terminate this contract and the earnest money will be refunded to Purchaser unless the other party elects to eliminate the excess in the variance by an appropriate adjustment at closing. Purchaser may terminate this contract and the earnest money will be refunded to Purchaser if the noteholder requires (a) payment of an assumption fee in excess of $________________ in (1) above or $________________ in (2) above and Seller declines to pay such excess, (b) an increase in the interest rate to more than ________% in (1) above, or ________% in (2) above, (c) any other modification of the loan documents, or (d) consent to the assumption of the loan and fails to consent. An appropriate instrument authorized within the state, typically either (1) a mortgage or (2) vendor's and deed of trust liens, to secure the assumption will be required, and it will automatically be released on execution and delivery of a release by noteholder. If Seller is released from liability on any assumed note, the instrument securing the assumption will not be required. If noteholder maintains an escrow account, the escrow account must be transferred to Purchaser without any deficiency. Purchaser shall reimburse Seller for the amount in the transferred accounts. NOTICE TO PURCHASER: The monthly payments, interest rates or other terms of some loans may be adjusted by the noteholder at or after closing. If you are concerned about the possibility of future adjustments, do not sign the contract without examining the notes and the instrument securing the note. NOTICE TO SELLER: Your liability to pay the note assumed by Purchaser will continue unless you obtain a release of liability from the noteholder. If you are concerned about future liability, you should use the a Release of Liability Addendum. PURCHASER: ____________________
____________________________________________
____________________________________________ SELLER: ____________________
____________________________________________
Note: This addendum is only necessary if the parties have checked the option in Paragraph 4(C) above.
SELLER FINANCING ADDENDUM
___________________________________________________________________________ A. CREDIT DOCUMENTATION: Within _____ days after the effective date of this contract, Purchaser shall deliver to Seller: [check all applicable items:] _____credit report _____verification of employment, including salary _____verification of funds on deposit in financial institutions _____current financial statement to establish Purchaser's creditworthiness. Purchaser hereby authorizes any credit reporting agency to furnish to Seller at Purchaser's sole expense copies of Purchaser's credit reports. B. CREDIT APPROVAL: If Purchaser's documentation is not delivered within the specified time, Seller may terminate this contract by notice to Purchaser within 7 days after expiration of the time for delivery, and the earnest money will be paid to Seller. If the documentation is timely delivered, and Seller determines in Seller's sole discretion that Purchaser's credit is unacceptable, Seller may terminate this contract by notice to Purchaser within 7 days after expiration of the time for delivery and the earnest money will be refunded to Purchaser. If Seller does not terminate this contract, Seller will be deemed to have accepted Purchaser's credit. C. PROMISSORY NOTE: The promissory note (Note) described in Paragraph 4 of this contract payable by Purchaser to the order of Seller will be payable at the place designated by Seller. Purchaser may prepay the Note in whole or in part at any time without penalty. Any prepayments are to be applied to the payment of the installments of principal last maturing and interest will immediately cease on the prepaid principal. The Note will contain a provision for payment of a late fee of 5% of any installment not paid within 10 days of the due date. The Note will be payable as follows: _____ (1) In one payment due ____________________ after the date of the Note with interest payable ___________________. _____ (2) In ____________________ installments of $____________________, [check all applicable items:] _____including interest _____plus interest beginning ____________________ after the date of the Note and continuing at ____________________ intervals thereafter for ____________________ when the balance of the Note will be due and payable. _____ (3) Interest only in ____________________ installments for the first ____________________ month(s) and thereafter in installments of $____________________, [check all applicable items:] _____including interest _____plus interest beginning ____________________ after the date of the Note and continuing at ____________________ intervals thereafter for when the balance of the Note will be due and payable. D. SECURING INSTRUMENT: [Choose the appropriate instrument authorized within the state:] A _____ mortgage, or _____ deed of trust lien, will provide for the following: (1) PROPERTY TRANSFERS: [check only one:] _____ (a) Consent Not Required: The Property may be sold, conveyed or leased without the consent of Seller, provided any subsequent Purchaser assumes the Note. _____ (b) Consent Required: If all or any part of the Property is sold, conveyed, leased for a period longer than 3 years, leased with an option to purchase, or otherwise sold, without the prior written consent of Seller, Seller may declare the balance of the Note, to be immediately due and payable. The creation of a subordinate lien, any conveyance under threat or order of condemnation, any deed solely between Purchasers, the passage of title by reason of the death of a Purchaser or by operation of law will not entitle Seller to exercise the remedies provided in this paragraph. (2) TAX AND INSURANCE ESCROW: [check only one:] _____ (a) Escrow Not Required: Purchaser shall furnish Seller annually, before the taxes become delinquent, evidence that all taxes on the Property have been paid. Purchaser shall furnish Seller annually evidence of paid-up casualty insurance naming Seller as an additional loss payee. _____ (b) Escrow Required: With each installment Purchaser shall deposit with Seller in escrow a pro rata part of the estimated annual ad valorem taxes and casualty insurance premiums for the Property. Purchaser shall pay any deficiency within 30 days after notice from Seller. Purchaser's failure to pay the deficiency constitutes a default under the securing instrument. Purchaser is not required to deposit any escrow payments for taxes and insurance that are deposited with a superior lienholder. The casualty insurance must name Seller as an additional loss payee. (3) PRIOR LIENS: Any default under any lien superior to the lien securing the Note constitutes default under the deed of trust securing the Note. PURCHASER: ____________________
____________________________________________
____________________________________________ SELLER: ____________________
____________________________________________
Note About the Following Pages: The following lead disclosure must be included if the property was built prior to 1978. LEAD-BASED PAINT DISCLOSURE (SALES)
___________________________________________________________________ WARNING! LEAD FROM PAINT, DUST, AND SOIL CAN BE DANGEROUS IF NOT MANAGED PROPERLY Disclosure of Information on Lead-Based Paint and/or Lead-Based Paint Hazards Lead Warning Statement Every purchaser of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified that such property may present exposure to lead from lead-based paint that may place young children at risk of developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligence quotient, behavioral problems, and impaired memory. Lead poisoning also poses a particular risk to pregnant women. The Seller of any interest in residential real property is required to provide the buyer with any information on lead-based paint hazards from risk assessments or inspections in the Seller's possession and notify the buyer of any known lead-based paint hazards. A risk assessment or inspection for possible lead-based paint hazards is recommended prior to purchase. Seller's Disclosure (a) Presence of lead-based paint and/or lead-based paint hazards (check (i) or (ii) below):
(i)
______ Known
lead-based paint and/or lead-based paint hazards are present in the housing
(explain). (ii) ______ Seller has no knowledge of lead-based paint and/or lead-based paint hazards in the housing. (b) Records and reports available to the seller (check (i) or (ii) below):
(i)
______ Seller has
provided the purchaser with all available records and reports pertaining to
lead-based paint and/or lead-based paint hazards in the housing (list documents
below). (ii) _____ Seller has no reports or records pertaining to lead-based paint and/or lead-based paint hazards in the housing. Purchaser's Acknowledgment (initial) (c) ______ Purchaser has received copies of all information listed above. (d) ______ Purchaser has received the pamphlet Protect Your Family from Lead in Your Home. (e) Purchaser has (check (i) or (ii) below): (i) ______ received a 10-day opportunity (or mutually agreed upon period) to conduct a risk assessment or inspection for the presence of lead-based paint and/or lead-based paint hazards; or (ii) ______ waived the opportunity to conduct a risk assessment or inspection for the presence of lead-based paint and/or lead-based paint hazards. Agent's Acknowledgment (initial) (f) ______ Agent has informed the seller of the seller' obligations under 42 U.S.C. 4852(d) and is aware of his/her responsibility to ensure compliance. Seller Initials: ______ ______ Buyer Initials: ______ ______ Agent Initials: ______ ______ Certification of Accuracy The following parties have reviewed the information above and certify, to the best of their knowledge, that the information they have provided is true and accurate. Penalties for failure to comply with Federal Lead-Based Paint Disclosure Laws include treble (3 times) damages, attorney fees, costs, and a penalty up to $10,000 for each violation. PURCHASER: ____________________
____________________________________________
____________________________________________ SELLER: ____________________
____________________________________________
AGENT: ____________________
____________________________________________ Protect Your Family from Lead in Your Home
United States Environmental
Protection Agency Simple Steps To Protect Your Family From Lead Hazards If you think your home has high levels of lead:
Are You Planning To Buy, Rent, or Renovate a Home Built Before 1978? Many houses and apartments built before 1978 have paint that contains high levels of lead (called leadbased paint). Lead from paint, chips, and dust can pose serious health hazards if not taken care of properly. OWNERS, BUYERS, and RENTERS are encouraged to check for lead (see page 2) before renting, buying or renovating pre-1978 housing. Federal law requires that individuals receive certain information before renting, buying, or renovating pre-1978 housing: LANDLORDS have to disclose known information on lead-based paint and lead-based paint hazards before leases take effect. Leases must include a disclosure about lead-based paint. SELLERS have to disclose known information on lead-based paint and lead-based paint hazards before selling a house. Sales contracts must include a disclosure about lead-based paint. Buyers have up to 10 days to check for lead. RENOVATORS disturbing more than 2 square feet of painted surfaces have to give you this pamphlet before starting work. IMPORTANT! Lead From Paint, Dust, and Soil Can Be Dangerous If Not Managed Properly
Lead Gets in the Body in Many Ways People can get lead in their body if they:
Lead is even more dangerous to children under the age of 6:
Childhood lead poisoning remains a major environmental health problem in the U.S. Even children who appear healthy can have dangerous levels of lead in their bodies. Lead’s Effects It is important to know that even exposure to low levels of lead can severely harm children. In children, lead can cause:
While low-lead exposure is most common, exposure to high levels of lead can have devastating effects on children, including seizures, unconsciousness, and, in some cases, death. Although children are especially susceptible to lead exposure, lead can be dangerous for adults too. In adults, lead can cause:
Lead affects the body in many ways: Brain or Nerve Damage, Slowed Growth, Hearing Problems, Reproductive Problems (adults), Digestive Problems. Where Lead-Based Paint Is Found Many homes built before 1978 have leadbased paint. The federal government banned lead-based paint from housing in 1978. Some states stopped its use even earlier. Lead can be found:
In general, the older your home, the more likely it has leadbased paint. Checking Your Family for Lead To reduce your child's exposure to lead, get your child checked, have your home tested (especially if your home has paint in poor condition and was built before 1978), and fix any hazards you may have. Children's blood lead levels tend to increase rapidly from 6 to 12 months of age, and tend to peak at 18 to 24 months of age. Consult your doctor for advice on testing your children. A simple blood test can detect high levels of lead. Blood tests are usually recommended for:
Get your children and home tested if you think your home has high levels of lead. Identifying Lead Hazards Lead-based paint is usually not a hazard if it is in good condition, and it is not on an impact or friction surface, like a window. It is defined by the federal government as paint with lead levels greater than or equal to 1.0 milligram per square centimeter, or more than 0.5% by weight. Deteriorating lead-based paint (peeling, chipping, chalking, cracking or damaged) is a hazard and needs immediate attention. It may also be a hazard when found on surfaces that children can chew or that get a lot of wear-and-tear, such as:
Lead dust can form when lead-based paint is scraped, sanded, or heated. Dust also forms when painted surfaces bump or rub together. Lead chips and dust can get on surfaces and objects that people touch. Settled lead dust can re-enter the air when people vacuum, sweep, or walk through it. The following two federal standards have been set for lead hazards in dust:
The following two federal standards have been set for lead hazards in residential soil:
The only way to find out if paint, dust and soil lead hazards exist is to test for them. The next page describes the most common methods used. Lead from paint chips, which you can see, and lead dust, which you can’t always see, can both be serious hazards. Checking Your Home for Lead You can get your home tested for lead in several different ways:
There are state and federal programs in place to ensure that testing is done safely, reliably, and effectively. Contact your state or local agency (see pages 3 and 4) for more information, or call 1-800-424-LEAD (5323) for a list of contacts in your area. Home test kits for lead are available, but may not always be accurate. Consumers should not rely on these kits before doing renovations or to assure safety. Just knowing that a home has leadbased paint may not tell you if there is a hazard. What You Can Do Now To Protect Your Family If you suspect that your house has lead hazards, you can take some immediate steps to reduce your family’s risk:
Reducing Lead Hazards In The Home In addition to day-to-day cleaning and good nutrition:
Call your state or local agency (see bottom of page 11) for help in locating certified professionals in your area and to see if financial assistance is available. Removing lead improperly can increase the hazard to your family by spreading even more lead dust around the house. Always use a professional who is trained to remove lead hazards safely. Remodeling or Renovating a Home With Lead-Based Paint Take precautions before your contractor or you begin remodeling or renovating anything that disturbs painted surfaces (such as scraping off paint or tearing out walls):
If you have already completed renovations or remodeling that could have released lead-based paint or dust, get your young children tested and follow the steps outlined on page 7 of this brochure. If not conducted properly, certain types of renovations can release lead from paint and dust into the air. Other Sources of Lead
While paint, dust, and soil are the most common sources of lead, other lead sources also exist. For More Information The National Lead Information Center
EPA’s Safe Drinking Water Hotline
Consumer Product Safety Commission (CPSC) Hotline
Health and Environmental Agencies
For the hearing impaired, call the Federal Information Relay Service at 1-800-877-8339 to access any of the phone numbers in this brochure.
EPA Regional Offices
Region 2 (New
Jersey, New York, Puerto Rico, Virgin Islands)
Region 3 (Delaware,
Maryland, Pennsylvania, Virginia, Washington DC, West Virginia)
Region 5 (Illinois,
Indiana, Michigan, Minnesota, Ohio, Wisconsin) EPA Regional Offices
Region 6 (Arkansas,
Louisiana, New Mexico, Oklahoma, Texas)
Region 7 (Iowa,
Kansas, Missouri, Nebraska)
Region 8 (Colorado,
Montana, North Dakota, South Dakota, Utah, Wyoming)
Region 9 (Arizona,
California, Hawaii, Nevada)
Region 10 (Alaska,
Idaho, Oregon, Washington) Your Regional EPA Office can provide further information regarding regulations and lead protection programs.
CPSC Regional Offices Eastern
Regional Center
Central Regional Center
Western Regional Center HUD Lead Office Please contact HUD's Office of Healthy Homes and Lead Hazard Control for information on lead regulations, outreach efforts, and lead hazard control and research grant programs.
U.S. Department of Housing and
Urban Development Your Regional CPSC Office can provide further information regarding regulations and consumer product safety.
U.S. EPA Washington DC 20460
EPA747-K-99-001
This lead-based paint addendum and disclosure (not the remainder of this page) is in the public domain and may be reproduced without permission, and it has been reformatted from its original PDF format as released by the U.S. government. It was reformatted by the Internet Legal Research Group (http://www.ilrg.com), a service of Maximilian Ventures, LLC. No changes have been made to this document other than to internal page number references. Graphical illustrations have been omitted or summarized wherever possible. It is based upon current scientific and technical understanding of the
issues presented and is reflective of the jurisdictional boundaries established
by the statutes governing the co-authoring agencies. Following the advice given
will not necessarily provide complete protection in all situations or against
all health hazards that can be caused by lead exposure. Other Forms You May Need
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