Agreement of Sale PDF

126 6. ZONING (4-14) Failure of this Agreement to contain the zoning classification (except in cases where the property {and each parcel thereof, if subdividable} is zoned solely or primarily to permit single-family dwellings) will render this Agreement voidable at Buyer’s option, and, if voided, a...

126 6. ZONING (4-14) Failure of this Agreement to contain the zoning classification (except in cases where the property {and each parcel thereof, if subdividable} is zoned solely or primarily to permit single-family dwellings) will render this Agreement voidable at Buyer’s option, and, if voided, any deposits tendered by the Buyer will be returned to the Buyer without any requirement for court action. Zoning Classification, as set forth in the local zoning ordinance:____________________________________________________ RES 7. FIXTURES AND PERSONAL PROPERTY (1-20) (A)  It is possible for certain items of personal property to be so integrated into the Property that they become fixtures and will be regarded as part of the Property and therefore included in a sale. Buyer and Seller are encouraged to be specific when negotiating what items will be included or excluded in this sale. (B) INCLUDED in this sale, unless otherwise stated, are all existing items permanently installed in or on the Property, free of liens, and other items including plumbing; heating; gas fireplace logs; radiator covers; hardwired security systems; thermostats; lighting fixtures (including chandeliers and ceiling fans); pools, spas and hot tubs (including covers and cleaning equipment); electric animal fencing systems (excluding collars); garage door openers and transmitters; mounting brackets and hardware for television and sound equipment; unpotted shrubbery, plantings and trees; smoke detectors and carbon monoxide detectors; sump pumps; storage sheds; fences; mailboxes; wall to wall carpeting; existing window screens, storm windows and screen/storm doors; window covering hardware (including rods and brackets), shades and blinds; awnings; central vacuum system (with attachments); built-in air conditioners; built-in appliances; the range/oven; dishwashers; trash compactors; any remaining heating and cooking fuels stored on the Property at the time of settlement; and, if owned, solar panels, windmills, water treatment systems, propane tanks and satellite dishes. Unless stated otherwise, the following items are included in the sale, at no additional cost:________ _______________________________________________________________________________________________________ _______________________________________________________________________________________________________ (C) The  following items are not owned by Seller and may be subject to a lease or other financing agreement. Contact the provider/ vendor for more information (e.g., solar panels, windmills, water treatment systems, propane tanks and satellite dishes):______ _______________________________________________________________________________________________________ (D) EXCLUDED fixtures and items:____________________________________________________________________________ ______________________________________________________________________________________________________ 8. BUYER FINANCING (8-22) (A) Buyer may elect to make this Agreement contingent upon obtaining mortgage financing. Regardless of any contingency elected in this Agreement, if Buyer chooses to obtain mortgage financing, the following apply: 1.  Buyer will be in default of this Agreement if Buyer furnishes false information to anyone concerning Buyer’s financial and/or employment status, fails to cooperate in good faith with processing the mortgage loan application (including payment for and ordering of appraisal without delay), fails to lock in interest rate(s) as stated below, or otherwise causes the lender to reject, or refuse to approve or issue, a mortgage loan. 2. Within 7_____ days (7 if not specified) from the Execution Date of this Agreement, Buyer will make a completed mortgage application (including payment for and ordering of credit reports without delay) for the mortgage terms and to the mortgage lender(s) identified _in Paragraph 8(F), if any, otherwise to a responsible mortgage lender(s) of Buyer’s choice. Broker for Buyer, if any, otherwise Broker for Seller, is authorized to communicate with the mortgage lender(s) to assist in the mortgage loan process. Broker for Seller, if any, is permitted to contact the morgage lender(s) at any time to determine the status of the mortgage loan application. 3. Seller will provide access to insurers’ representatives and, as may be required by mortgage lender(s), to surveyors, municipal officials, appraisers, and inspectors. 4. If the mortgage lender(s) gives Buyer the right to lock in interest rate(s) at or below the maximum levels desired, Buyer will do so at least 15 DAYS before Settlement Date. (B) The Loan-To-Value ratio (LTV) is used by lenders as one tool to help assess their potential risk of a mortgage loan. A particular LTV may be necessary to qualify for certain loans, or buyers might be required to pay additional fees if the LTV exceeds a specific level. The appraised value of the Property may be used by lenders to determine the maximum amount of a mortgage loan. The appraised value is determined by an independent appraiser, subject to the mortgage lender’s underwriter review, and may be higher or lower than the Purchase Price and/or market price of the Property. FHA/VA, IF APPLICABLE (C) It is expressly agreed that notwithstanding any other provisions of this contract, Buyer will not be obligated to complete the purchase of the Property described herein or to incur any penalty by forfeiture of earnest money deposits or otherwise unless Buyer has been given, in accordance with HUD/FHA or VA requirements, a written statement by the Federal Housing Commissioner, Veterans Administration, or a Direct Endorsement Lender setting forth the appraised value of the Property of not less than $_________________________ (the Purchase Price as stated in this Agreement). Buyer will have the privilege and option of proceeding with consummation of the contract without regard to the amount of the appraised valuation. The appraised valuation is arrived at to determine the maximum mortgage the Department of Housing and Urban Development will insure. HUD does not warrant the value nor the condition of the Property. Buyer should satisfy himself/herself that the price and condition of the Property are acceptable. Warning:  Section 1010 of Title 18, U.S.C., Department of Housing and Urban Development and Federal Housing Administration Transactions, provides, “Whoever for the purpose of influencing in any way the action of such Department, makes, passes, utters or publishes any statement, knowing the same to be false shall be fined under this title or imprisoned not more than two years, or both.” 127 Buyer Initials:______________________ 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 ASR Page 3 of 14 Seller Initials:______________________ 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 (D) U.S. Department of Housing and Urban Development (HUD) NOTICE TO PURCHASERS: Buyer’s Acknowledgement  Buyer has received the HUD Notice “For Your Protection: Get a Home Inspection.” Buyer understands the importance of getting an independent home inspection and has thought about this before signing this Agreement. Buyer understands that FHA will not perform a home inspection nor guarantee the price or condition of the Property. Buyer  will apply for Section 203(k) financing, and this contract is contingent upon mortgage approval (See Paragraph 8(F)) and Buyer’s acceptance of additional required repairs as required by the lender. (E) Certification  We the undersigned, Seller(s) and Buyer(s) party to this transaction each certify that the terms of this contract for purchase are true to the best of our knowledge and belief, and that any other agreement entered into by any of these parties in connection with this transaction is attached to this Agreement. (F) Mortgage Contingency WAIVED. This sale is NOT contingent on mortgage financing, although Buyer may obtain mortgage financing and/or the parties may include an appraisal contingency. Buyer and Seller understand that the waiver of this contingency does not restrict Buyer’s right to obtain mortgage financing for the Property. ELECTED. This sale is contingent upon Buyer obtaining mortgage financing according to the terms outlined below. Upon receiving documentation demonstrating the mortgage lender’s approval, whether conditional or outright, of Buyer’s mortgage application(s) according to the following terms, Buyer will promptly deliver a copy of the documentation to Seller, but in any case no later than____________________________ (Commitment Date). Second Mortgage on the Property First Mortgage on the Property Loan Amount $ ________________________________________ Loan Amount $ ________________________________________ Minimum Term ______________ years Minimum Term ______________ years Type of mortgage ______________________________________ Type of mortgage ______________________________________ For conventional loans, the Loan-To-Value (LTV) ratio is not to For conventional loans, the Loan-To-Value (LTV) ratio is not to exceed _______% exceed _______% Mortgage lender _______________________________________ Mortgage lender ________________________________________ ____________________________________________________ _____________________________________________________ Interest rate _________%; however, Buyer agrees to accept the Interest rate _________%; however, Buyer agrees to accept the interest rate as may be committed by the mortgage lender, not interest rate as may be committed by the mortgage lender, not to exceed a maximum interest rate of _________%. to exceed a maximum interest rate of _________%. Discount points, loan origination, loan placement and other fees Discount points, loan origination, loan placement and other fees charged by the lender as a percentage of the mortgage loan (exclud- charged by the lender as a percentage of the mortgage loan (excluding any mortgage insurance premiums or VA funding fee) not to ing any mortgage insurance premiums or VA funding fee) not to exceed _________% (0% if not specified) of the mortgage loan. exceed _________% (0% if not specified) of the mortgage loan. 1. The interest rate(s) and fee(s) provisions in Paragraph 8(F) are satisfied if the mortgage lender(s) gives Buyer the right to guarantee the interest rate(s) and fee(s) at or below the maximum levels stated. Buyer gives Seller the right, at Seller’s sole option and as permitted by law and the mortgage lender(s), to contribute financially, without promise of reimbursement, to Buyer and/or the mortgage lender(s) to make the above mortgage term(s) available to Buyer. 2. Seller may terminate this Agreement after the Commitment Date by written notice to Buyer if: a.  Seller does not receive a copy of the documentation demonstrating the mortgage lender’s conditional or outright approval of Buyer’s mortgage application(s) by the Commitment Date, b. The  documentation demonstrating the mortgage lender’s conditional or outright approval of Buyer’s mortgage application(s) does not satisfy the loan terms outlined in Paragraph 8(F), OR c. The documentation demonstrating the mortgage lender’s conditional or outright approval of Buyer’s mortgage application(s) contains any condition not specified in this Agreement (e.g., Buyer must settle on another property, an appraisal must be received by the lender, or the approval is not valid through the Settlement Date) that is not satisfied and/or removed in writing by the mortgage lender(s) within 7 DAYS after the Commitment Date, or any extension thereof, other than those conditions that are customarily satisfied at or near settlement (e.g., obtaining insurance, confirming employment). 3. Seller’s right to terminate continues until Buyer delivers documentation demonstrating the mortgage lender’s conditional or outright approval of Buyer’s mortgage application(s) to Seller. Until Seller terminates this Agreement pursuant to this Paragraph, Buyer must continue to make a good faith effort to obtain mortgage financing. Termination of this Agreement by Buyer due to the mortgage lender’s denial of Buyer’s mortgage application(s) may demonstrate bad faith by Buyer and result in the forfeiture of deposit monies to Seller. 4. If this Agreement is terminated pursuant to Paragraphs 8(F)(2), or the mortgage loan(s) is not obtained for settlement, all deposit monies will be returned to Buyer according to the terms of Paragraph 26 and this Agreement will be VOID. Buyer will be responsible for any costs incurred by Buyer for any inspections or certifications obtained according to the terms of this Agreement, and any costs incurred by Buyer for: (1) Title search, title insurance and/or mechanics’ lien insurance, or any fee for cancellation; (2) Flood insurance, fire insurance, hazard insurance, mine subsidence insurance, or any fee for cancellation; (3) Appraisal fees and charges paid in advance to mortgage lender(s). 5.  If the mortgage lender(s), or a property and casualty insurer providing insurance required by the mortgage lender(s), requires repairs to the Property, Buyer will, upon receiving the requirements, deliver a copy of the requirements to Seller. Within 5 DAYS of receiving the copy of the requirements, Seller will notify Buyer whether Seller will make the required repairs at Seller’s expense. a. If Seller makes the required repairs to the satisfaction of the mortgage lender and/or insurer, Buyer accepts the Property and agrees to the RELEASE in Paragraph 28 of this Agreement. Buyer Initials:______________________ ASR Page 4 of 14 Seller Initials:______________________