Contract for the Sale of Residential Property

Contract for the Sale of Residential Property

Agreement made on the , between

of , hereinafter called Seller, and

of , hereinafter called Purchaser.

Whereas, Seller is the owner of the lot or parcel of real property situated in and described as follows:

Whereas, the real property consists of a residential site at , with improvements on the property (the Property) as follows:

; and

Whereas, Seller desires to sell and Purchaser desires to buy Property, for the purchase price and on the terms and conditions set forth below.

Now, therefore, for and in consideration of the mutual covenants contained in this Agreement, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

1. Purchase Price and Terms of Payment

The purchase price for Property is $ , which shall be paid as follows:

A. By cash in the amount of $ , on the signing of this Agreement, receipt of which is acknowledged by Seller:

B. By assumption of an existing encumbrance on Property in the form of a owned by , located at , which Purchaser expressly assumes and promises to pay. The present principal balance outstanding on the loan secured by said Mortgage as of the date of this Contract is $ .

C. By a Promissory Note (the Note) and Purchase Money Mortgage (or deed of trust), (the Mortgage) for the balance of the Purchase Price. Said Note to be executed by Purchaser to Seller will be payable in equal installments of an amortized sum over months, will draw or incur % interest per annum, and will have a maturity or date of final payment of . The first payment shall be due and payable on the day of the month following the closing of this transaction. The Note and Mortgage will be in a form substantially the same as Exhibits A and B attached hereto.

2. Title to Property

Title to Property to be conveyed by Seller shall be good and marketable title, clear of all liens, encumbrances, defects, and burdens, except:

Title as required by this Agreement shall be evidenced by: a standard form policy of title insurance issued by a title company acceptable to Purchaser, doing business in the where Property is situated. The policy shall be issued as of the date of closing, shall be in the amount of the purchase price, and shall be a joint owner-mortgagee policy insuring Seller and Purchaser as their interests may appear. Seller shall convey title at the closing of the transaction to .

3. Costs

A. The following costs shall be borne equally by the parties: recording fees, escrow fees, notarial fees, and transaction stamp tax of .

B. The following costs shall be paid by Seller: title insurance premium, charges of Seller's attorney for drawing instruments and advising.

C. The following costs shall be paid by Purchaser: mortgage tax, assumption charges of holder of existing encumbrance, if any, and charges of Purchaser's attorney for drawing instruments and advising.

D. The following costs shall be prorated to the date of closing: taxes and assessments due but not delinquent.

4. Insurance

A. Risk of loss or damage to Property by fire, storm, burglary, vandalism, or other casualty, between the date of this Agreement and the closing, shall be and is assumed by Purchaser. No such loss or damage shall void or impair this Agreement. If the improvements or personal Property, or both, are damaged or destroyed, in whole or in part, by casualty prior to closing, the Agreement shall continue in full force and effect, and Purchaser shall be subrogated to Seller's right of coverage with respect to any insurance carried by Seller.

B. All existing insurance covering Property now in effect shall be continued by Seller, and shall be available for transfer to Purchaser at closing. Premiums on the insurance shall be prorated to the time of closing. All such policies shall be exhibited immediately to Purchaser who may secure additional insurance on Property, or any part of Property, if Purchaser so desires. Any additional insurance shall name Seller and Purchaser as co-insureds as their interests appear.

5. Transfer of Property

A. Seller shall maintain Property, including improvements, and lawns, shrubs, and trees, in its present condition pending the closing of this transaction, normal and reasonable wear excepted.

B. Prior to transfer of possession, Purchaser shall cause Property to be cleaned and placed in a neat, sanitary, and habitable condition. Property shall be transferred to Purchaser, as provided in this Agreement, in such condition, and clear of all trash, debris, and the personal effects, furnishings, and belongings of Seller.

C. Possession of Property shall be transferred to Purchaser within days after the closing of the sale. All keys shall be delivered to Purchaser at the time of transfer of possession. If the transfer is delayed for any cause beyond the period specified, Seller shall pay to Purchaser $ for each day of the delay, as agreed rental, but this provision shall not be construed as barring or limiting any remedy available to Purchaser, in law or equity, for the recovery of possession.

6. Time of Essence; Closing

Time is declared to be of the essence of this Agreement. The Agreement shall be executed and completed, and sale closed, on or before , or such other date as the parties may in writing agree. Each party shall fully perform all the party's obligations under this Agreement at such times as to insure that the closing takes place within the period specified, or any agreed-on extension of that period.

7. Remedies of Parties

A. If Purchaser fails or refuses to comply with the conditions assumed by Purchaser, or to perform all of Purchaser's obligations under this Agreement, Seller may at Seller's option: (a) hold and retain the initial deposit money and any additional funds paid or deposited by Purchaser, as liquidated damages for breach of this Agreement, and rescind and terminate the Agreement, and upon such termination all rights and obligations under the Agreement shall cease and determine; or (b) enforce this Agreement by appropriate action, including an action for specific performance, or for damages for breach, and retain all monies paid or deposited by Purchaser pending the determination of the action. Seller shall give Purchaser written notice of election with respect to Seller's exercise of either of these options.

B. If Seller fails or refuses to perform Seller's obligations under this Agreement, including the furnishing of good title and transfer of possession, Purchaser may either: (a) rescind the Agreement and recover all deposits and other amounts paid by Purchaser under this Agreement, and all expenses paid or incurred by Purchaser; or (b) pursue any remedy available to Purchaser, in law or equity, including an action to compel specific performance of this Agreement, or one for damages for breach, separately or alternatively.

8. No Waiver

The failure of either party to this Agreement to insist upon the performance of any of the terms and conditions of this Agreement, or the waiver of any breach of any of the terms and conditions of this Agreement, shall not be construed as subsequently waiving any such terms and conditions, but the same shall continue and remain in full force and effect as if no such forbearance or waiver had occurred.

9. Governing Law

This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of .

10. Notices

Any notice provided for or concerning this Agreement shall be in writing and shall be deemed sufficiently given when sent by certified mail if sent to the respective address of each party as set forth at the beginning of this Agreement.

11. Mandatory Arbitration

Notwithstanding the foregoing, including Paragraph 7, any dispute under this Agreement shall be required to be resolved by binding arbitration of the parties hereto. If the parties cannot agree on an arbitrator, each party shall select one arbitrator and both arbitrators shall then select a third. The third arbitrator so selected shall arbitrate said dispute. The arbitration shall be governed by the rules of the American Arbitration Association then in force and effect.

12. Entire Agreement

This Agreement shall constitute the entire agreement between the parties and any prior understanding or representation of any kind preceding the date of this Agreement shall not be binding upon either party except to the extent incorporated in this Agreement.

13. Modification of Agreement

Any modification of this Agreement or additional obligation assumed by either party in connection with this Agreement shall be binding only if placed in writing and signed by each party or an authorized representative of each party.

14. Assignment of Rights

The rights of each party under this Agreement are personal to that party and may not be assigned or transferred to any other person, firm, corporation, or other entity without the prior, express, and written consent of the other party.

WITNESS our signatures as of the day and date first above stated.