MyBusinessKit.com - customized small business planning & startup software

REAL ESTATE PURCHASE CONTRACT

This is a legally binding contract. Law requires real estate licensees to use this form. Buy and Seller, however, may agree to alter or delete its provisions or to use a different form. If you desire legal or tax advice, consult your attorney or tax advisor.

Buyer ___________________________________________ offers to purchase the Property described below and hereby delivers to the Brokerage, as Earnest Money, the amount of $_____________ in the form of _________________________which, upon Acceptance of this offer by all parties (as defined in Section 23), shall be deposited in accordance with state law.

Received by ____________________________________________ on _______ (Date)
(Signature of agent/broker acknowledges receipt of Earnest Money)

Brokerage: ______________________________________________ Phone number: _________________

OFFER TO PURCHASE

1. PROPERTY: __________________________________________ also described as: ________________________________________________________________ City of ________________________, County of __________________, State of _________, Zip ____________ (the “Property”)
1.1 Included Items. Unless excluded herein, this sale includes the following items if presently attached to the Property: plumbing, heating, air conditioning, fixtures and equipment; ceiling fans; water heater; built-in appliances; light fixtures and bulbs; bathroom fixtures; curtains, draperies and rods; window and door screens; storm doors and windows; window blinds; awnings; installed television antenna; satellite dishes and system; permanently affixed carpets; automatic garage door opener and accompanying transmitter(s); fencing; and trees and shrubs. The following items shall also be included in this sale and conveyed under separate Bill of Sale with warranties as to title: ______________________________________________
_________________________________________________________________________
1.2 Excluded items. The following items are excluded from this sale: ______________________
_________________________________________________________________________
1.3 Water Rights. The following water right are included in this sale: _____________________
_________________________________________________________________________
1.4 Survey. (Check applicable boxes): A survey [ ] WILL [ ] WILL NOT be prepared by a licensed surveyor. The Survey Work will be: [ ] Property comers staked [ ] Boundary Survey [ ] Boundary & Improvement survey [ ] Other (specify) __________________. Responsibility for payment: [ ] Buyer [ ] Seller [ ] Buyer and Seller share equally. Buyer’s obligation to purchase under this Contract [ ] IS [ ] IS NOT conditioned upon Buyer’s approval of the Survey Work. If yes, the terms of the attached Survey Addendum apply.

2. PURCHASE PRICE. The Purchase Price for the Property is $_______________________
2.1 Method of Payment. The Purchase Price will be paid as follows:

$______________ (a) Earnest Money Deposit. Under certain conditions described in the Contract, THIS DEPOSIT MAY BECOME TOTALLY NON-REFUNDABLE.
$______________ (b) New Loan. Buyer agrees to apply for a new loan as provided in Section 2.3. Buyer will apply for one or more of the following loans: [ ] CONVENTIONAL [ ] FHA [ ] VA
[ ] OTHER (specify) _________________________________________
If an FHA/VA loan applies, see attached FHA/VA Loan Addendum.
If the loan is to include an particular terms, then check below and give details:
[ ] SPECIFIC LOAN TERMS _________________________________
___________________________________________________________
$______________ (c) Loan Assumption (see attached Assumption Addendum if applicable)
$______________ (d) Seller Financing (see attached Seller Financing Addendum if applicable)
$______________ (e) Other (specify) ____________________________________________
$______________ (f) Balance of Purchase Price in Cash at Settlement

$______________ PURCHASE PRICE. Total of lines (a) through (f)

2.2 Financing Condition. (check applicable box)
(a) [ ] Buyer’s obligation to purchase the Property IS conditioned upon Buyer qualifying for the applicable loan(s) referenced in Section 2.1(b) or (c) (the “Loan”). This condition is referred to as the “Financing Condition.”
(b) [ ] Buyer’s obligation to purchase the Property IS NOT conditioned upon Buyer qualifying for a loan. Section 2.3 does not apply.

2.3 Application for Loan.
(a) Buyer’s duties. No later than the Application Deadline referenced in Section 24(a), Buyer shall apply for the Loan. “Loan Application” occurs only when Buyer has: (i) completed, signed, an d delivered to the lender (the “Lender) the initial loan application and documentation required by the lender; and (ii) paid all loan application fees as required by the Lender. Buyer agrees to diligently work to obtain the Loan. Buyer will promptly provide the Lender with any additional documentation as required by the Lender.
(b) Procedure if Loan Application is denied. If Buyer receives written notice from the Lender that the Lender does not approve the Loan (a “Loan Denial”), Buyer shall, no later than three calendar days thereafter, provide a copy to providing written notice to the other party. In the event of a cancellation under this Section 2.3(b): (i) if the Loan Denial was received by Buyer on or before the ______ day of ____________, _____, the Earnest Money Deposit shall be returned to Buyer; (ii) if the Loan Denial was received by Buyer after that date, Buyer agrees to forfeit, and Seller agrees to accept as Seller’s exclusive remedy, the Earnest Money as liquidated damages. A failure to cancel as provided in this Section 2.3(b) shall have no effect on the Financing Condition set forth in Section 2.2(a). Cancellation pursuant to the provisions of any other section of this Contract shall be governed by such other provisions.

2.4 Appraisal of Property. Buyer’s obligation to purchase the Property [ ] IS [ ] IS NOT conditioned upon the Property appraising for not less than the Purchase Price. If the appraisal condition applies and the Property appraises for less than the Purchase Price, Buyer may cancel this Contract by providing written notice to Seller no later than three calendar days after Buyer’s receipt of notice of the appraised value. In the event of such cancellation, the Earnest Money Deposit shall be released to Buyer. A failure to cancel as provided in this Section 2.4 shall be deemed a waiver of the appraisal condition by Buyer.

3. SETTLEMENT AND CLOSING. Settlement shall take place on the Settlement Deadline referenced in Section 24(d), or on a date upon which Buyer and Seller agree in writing. “Settlement” shall occur only when all of the following have been completed: (a) Buyer and Seller have signed and delivered to each other or to the escrow/closing office all documents required by this Contract, by the Lender, by written escrow instructions or by applicable law; (b) any monies required to be paid by Buyer under these documents (except for the proceeds of any new loan) have been delivered by Buyer to Seller or to the escrow/closing office in the form of collected or cleared funds; and (c) any monies required to be paid by Seller under these documents have been delivered by Seller to Buyer or to the escrow/closing office in the form of collected or cleared funds. Seller and Buyer shall each pay one-half (½) of the fee charted by the escrow/closing office for its services in the settlement/closing process. Taxes and assessments for t he current year, rents, and interest on assumed obligations shall be prorated at Settlement as set forth in this Section. Tenant deposits (including, but not limited to, security deposits, cleaning deposits and prepaid rents) shall be paid or credited by Seller to Buyer at Settlement. Preparations set forth in the Section shall be made as of the Settlement Deadline date referenced in Section 24(d), unless otherwise agreed to in writing by the parties. Such writing could include the settlement statement. The transaction will be considered closed when Settlement has been complete, and when all of the following have been completed: (i) the proceeds of any new loan have been delivered by the Lender to Seller or to the escrow/closing office; and (ii) the applicable Closing documents have been recorded in the office of the county recorder. The actions described in parts (i) and (ii) of the preceding sentence shall be completed within four calendar days of Settlement.

4. POSSESSION. Seller shall deliver physical possession to Buyer within: [ ] _________ hours [ ] _________ days after Closing; [ ] Other (specify) ________________________________

5. CONFIRMATION OF AGENCY DISCLOSURE. At the signing of this Contract:

[ ] Seller’s Initials [ ] Buyer’s Initials

The Listing Agent, ____________________________, represents [ ] Seller [ ] Buyer [ ] Both Buyer and Seller as a Limited Agent;
The Selling Agent, ____________________________, represents [ ] Seller [ ] Buyer [ ] Both Buyer and Seller as a Limited Agent;
The Listing Broker, ___________________________, represents [ ] Seller [ ] Buyer [ ] Both Buyer and Seller as a Limited Agent;
The Selling Broker, ___________________________, represents [ ] Seller [ ] Buyer [ ] Both Buyer and Seller as a Limited Agent.

6. TITLE INSURANCE. At Settlement, Seller agrees to pay for a standard-coverage owner’s policy of title insurance insuring Buyer in the amount of the Purchase Price.

7. SELLER CISCLOSURES. No later than the Seller Disclosure Deadline referenced in Section 24(b), Seller shall provide to Buyer the following documents which are collectively referred to as the “Seller Disclosures”:
(a) a Seller property condition disclosure for the Property, signed and dated by Seller;
(b) a commitment for the policy of title insurance;
(c) a copy of any leases affecting the Property not expiring prior to Closing;
(d) written notice of any claims and/or conditions knows to Seller relating to environmental problems and building or zoning code violations; and
(e) Other (specify) _________________________________________________
_______________________________________________________________

8. BUYER’S RIGHT TO CANCEL BASED ON EVALUATIONS AND INSPECTIONS. Buyer’s obligation to purchase under this Contract (check applicable boxes):
[ ] IS [ ] IS NOT conditioned upon Buyer’s approval of the content of all the Seller Disclosures referenced in Section 7;
[ ] IS [ ] IS NOT conditioned upon Buyer’s approval of a physical condition inspection of the Property;
[ ] IS [ ] IS NOT conditioned upon Buyer’s approval of the following tests and evaluations of the Property: (specify) ____________
_______________________________________________________________
If any of the above items are checked in the affirmative, then Sections 8.1, 8.2, 8.3, and 8.4 apply; otherwise, they do not apply. The items checked in the affirmative above are collectively referred to as the “Evaluations & Inspections.” Unless otherwise provided in this Contract, the Evaluations & Inspections shall be paid for by Buyer and shall be conducted by individuals or entities of Buyer’s choice. Seller agrees to cooperate with the Evaluations & Inspections and with the walk-through

This is only a partial veiw of this form, upon purchasing the software you will have a complete view that will be available in Microsoft Word for personalization and editing.