CONTRACT FOR THE SALE AND PURCHASE OF REAL ESTATE
(NO BROKER)
For good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
,“Seller” whether one or more,
and
,“Buyer” whether one or more,
do hereby covenant, contract and agree as follows:
1. AGREEMENT TO SALE AND PURCHASE: Seller agrees to sell, and Buyer agrees to buy from Seller the
Property described as follows: (complete adequately to identify property)
County, North Carolina.
Address:
Legal Description (or see attached exhibit):
As described in attached Exhibit.
Together with the following items, if any: (Strike items to be retained by Seller) curtains and rods, draperies and
rods, valances, blinds, window shades, screens, shutters, awnings, wall-to-wall carpeting, mirrors fixed in place,
ceiling fans, attic fans, mail boxes, television antennas and satellite dish system with controls and equipment,
permanently installed heating and air-conditioning units, window air-conditioning units, built-in security and fire
detection equipment, plumbing and lighting fixtures including chandeliers, water softener, stove, built-in kitchen
equipment, garage door openers with controls, built-in cleaning equipment, all swimming pool equipment and
maintenance accessories, shrubbery, landscaping, permanently installed outdoor cooking equipment, built-in
fireplace screens, artificial fireplace logs and all other property owned by Seller and attached to the above
described real property except the following property which is not included (list items not included):
All property sold by this contract is called the "Property."
2. SALES PRICE: The parties agree to the following sales price:
Amount Amount
Purchase Price $
Earnest Money $
New Loan $
Assumption of Loan $
Seller Financing $
Cash at Closing $
Total ( both columns should be equal) $ $
Both columns should be an equal amount.
If the unpaid principal balance(s) of any assumed loan(s), if any, as of the Closing Date varies from the loan
balance(s) stated above, the cash payable at closing will be adjusted by the amount of any variance.
3. FINANCING: The following provisions apply with respect to financing:
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CASH SALE: This contract is not contingent on financing.
OWNER FINANCING: Seller agrees to finance
dollars of the purchase price pursuant
to a promissory note from Buyer to Seller of $ , bearing % interest per annum, payable
over a term of years with even monthly payments, secured by a deed of trust or mortgage
lien with the first payment to begin on the day of , 20 .
NEW LOAN OR ASSUMPTION: This contract is contingent on Buyer obtaining financing.
Within days after the effective date of this contract Buyer shall apply for all financing or
noteholder's approval of any assumption and make every reasonable effort to obtain financing or
assumption approval. Financing or assumption approval will be deemed to have been obtained when the
lender determines that Buyer has satisfied all of lender's financial requirements (those items relating to
Buyer's net worth, income and creditworthiness). If financing or assumption approval is not obtained by
the expiration of the Due Diligence Period at ________ o’clock, [a.m. / p.m.] on ___________________,
20___, (see 5. BUYER’S DUE DILIGENCE PROCESS, below) this contract will terminate and the
earnest money will be refunded to Buyer. If Buyer intends to obtain a new loan, the loan will be of the
following type:
Conventional VA FHA Other:
The following provisions apply if a new loan is to be obtained:
FHA. It is expressly agreed that notwithstanding any other provisions of this contract, the Purchaser
(Buyer) shall 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 the Purchaser (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 Purchaser (Buyer) shall 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. The Purchaser (Buyer) should satisfy himself/herself that the price and condition of the
Property are acceptable.
VA. If Buyer is to pay the purchase price by obtaining a new VA-guaranteed loan: It is agreed that,
notwithstanding any other provisions of this contract, Buyer shall not incur any penalty by forfeiture of
earnest money or otherwise 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 Veterans
Administration. Buyer 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
Veterans Administration.
Existing Loan Review. If an existing loan is not to be released at closing, Seller shall provide copies of
the loan documents (including note, deed of trust or mortgage, modifications) to Buyer within
calendar days from acceptance of this contract. This contract is conditional upon Buyer's review and
approval of the provisions of such loan documents. Buyer consents to the provisions of such loan
documents if no written objection is received by Seller from Buyer within calendar days
from Buyer's receipt of such documents. If the lender's approval of a transfer of the Property is required,
this contract is conditional upon Buyer's obtaining such approval without change in the terms of such
loan, e x c e p t a s m a y b e a g r e e d b y B u y e r . I f l e n d e r ' s a p p r o v a l i s n o t o b t a i n e d o n o r
b e f o r e
, , this contract shall be terminated on such date. The
Seller shall shall not, be released from liability under such existing loan. If Seller is to be released
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and release approval is not obtained, Seller may nevertheless elect to proceed to closing, or terminate this
agreement in the sole discretion of Seller.
Credit Information. If Buyer is to pay all or part of the purchase price by executing a
promissory note in favor of Seller or if an existing loan is not to be released at closing, this contract is
conditional upon Seller's approval of Buyer's financial ability and creditworthiness, which approval shall
be at Seller's sole and absolute discretion. In such case: (l) Buyer shall supply to Seller on or before
, , at, Buyer's expense,
information and documents concerning Buyer's financial, employment and credit condition; (2) Buyer
consents that Seller may verify Buyer's financial ability and creditworthiness; (3) any such information
and documents received by Seller shall be held by Seller in confidence, and not released to others except
to protect Seller's interest in this transaction; (4) if Seller does
not provide written notice of Seller's disapproval to Buyer on or before ,
, then Seller waives this condition.
4. EARNEST MONEY: Buyer shall deposit $
as earnest money with upon execution of this contract by both parties.
5. BUYER’S DUE DILIGENCE PROCESS
The “ DUE DILIGENGE PERIOD ” begins upon the signing of this contract by both parties, and ends at:
________ o’clock, [a.m. / p.m.] on ___________________, 20___.
The Due Diligence Period may only be extended by a writing signed by both parties, which may also involve an
extension of the Closing Date.
(a) Financing : During the Due Diligence Period, Buyer, at Buyer’s expense, shall be entitled to pursue
qualification for and approval of the NEW LOAN OR ASSUMPTION identified above in 3. FINANCING , if
applicable. If a NEW LOAN OR ASSUMPTION is applicable, this contract is contingent on Buyer obtaining
financing within the prescribed time, as noted in 3. FINANCING above.
NOTE: Buyer is advised to consult with Buyer’s lender, if applicable, prior to signing this contract in
order that financing be timely obtained by the deadline stated in 3. FINANCING : NEW LOAN OR
ASSUMPTION, above.
(b) Property Investigation : During the Due Diligence Period, Buyer or Buyer’s agents, at Buyer’s
expense (or otherwise as noted in the 10. CLOSING COSTS AND EXPENSES table, below), shall be entitled to
conduct all desired tests, surveys, appraisals, investigations, examinations and inspections of the Property as
Buyer deems appropriate, including - but not limited to - the following:
(i) Inspections: Condition of property and any fixtures and improvements;
presence of unusual drainage or moisture; asbestos or environmental contamination; wood-
destroying insects or related damage; radon gas.
(ii) Review of Documents: Restrictive Covenants, Bylaws, Articles of
Incorporation, Rules and Regulations, or other governing documents of any applicable owners’
association and/or subdivision. Buyer has received a completed North Carolina Residential
Property and Owners’ Association Disclosure Statement prior to signing this contract,
unless Seller is exempt from providing this Disclosure Statement (see below, 6. PROPERTY
AND OWNERS’ ASSOCIATION DISCLOSURE STATEMENT ).
(iii) Insurance: Investigation of the availability and cost of insurance for the
Property.
(iv) An appraisal of the property.
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(v) Survey: A survey to determine whether the property is suitable for Buyer’s
intended use and the location of easements, setbacks, property boundaries, and other issues
which may or may not constitute title defects. See, however, 8. TITLE AND CONVEYANCE ,
below, which section requires a Title Report be submitted to Buyer and operates independently
of any Due Diligence performed by the Buyer.
(vi) Zoning and Governmental Regulation: Investigation of current and proposed
zoning or other governmental regulation that may affect the Buyer’s intended use of the
Property, adjacent land uses, planned or proposed road construction, and school attendance
zones and districts.
(vii) Flood Hazard: Potential flood hazards on the property and the requirement of
any flood insurance to obtain any needed financing.
(viii) Utilities and Access: Availability, quality and obligations for maintenance of
utilities including but not limited to water, sewer, electric, gas, communication services, storm
water management, and means of access to the Property and amenities.
(ix) Streets and Roads: Ownership and maintenance status and associated
agreements or requirements related to any road or street fronting or necessary for access to part
or all of the Property.
(x) Fuel Tank: Existence, type, status and ownership of any fuel tank located on
the Property, including contacting owner of any leased fuel tank to determine future lease terms.
(c) Repair/Improvement Negotiations/Agreement : Buyer acknowledges and understands that unless the
parties agree otherwise, THE PROPERTY IS BEING SOLD IN ITS CURRENT CONDITION. Buyer and Seller
acknowledge and understand that they may, but are not required to, engage in negotiations for
repairs/improvements to the Property, which improvements/repairs shall be specified and assigned a deadline in a
separate agreement signed by the parties which shall become part of this contract.
(d) Buyer’s Obligation to Repair Damage : Buyer shall, at Buyer’s expense, promptly repair any
damage to the Property resulting from the Due Diligence activities of the Buyer or his agents/contractors, but
Buyer shall not be responsible for any damage caused by accepted practices either approved by the North Carolina
Home Inspector Licensure Board or applicable to any other North Carolina licensed professional performing
reasonable appraisals, tests, inspections, surveys and examinations of the Property. This repair obligation shall
survive the termination of this contract.
(e) Indemnity : Buyer will indemnify and hold Seller harmless from all loss, damage, claims, suits or
costs which shall arise out of any contract, agreement or injury to any person or property as a result of any
activities of Buyer and Buyer’s agents/contractors relating to the Property except for any loss, damage, claims,
suits or cost arising out of pre-existing conditions of the Property and/or out of Seller’s negligence or willful acts
or omissions. This indemnity shall survive this contract and any termination thereof.
(f) Buyer’s Right to Terminate : Buyer shall have the right to terminate this contract for any reason or
no reason, by delivering to Seller written notice of termination (the “Termination Notice”) during the Due
Diligence Period (or any agreed-upon written extension of the Due Diligence Period) TIME BEING OF THE
ESSENCE . If Buyer timely delivers the Termination Notice, this contract shall be terminated and the Earnest
Money Deposit shall be returned and refunded to Buyer.
WARNING : Buyer acknowledges and understands that if Buyer is not satisfied with the results
or progress of Buyer’s Due Diligence, Buyer should terminate this contract prior to the
expiration of the Due Diligence Period, unless Buyer can obtain a written extension from Seller.
SELLER IS NOT OBLIGATED TO GRANT AN EXTENSION. Although Buyer’s
investigations of the Property may continue following the expiration of the Due Diligence
Period, Buyer’s failure to deliver a Termination Notice to Seller prior to the expiration of the
Due Diligence Period shall constitute a waiver by Buyer of any right to terminate this contract
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based on any matter relating to Buyer’s Due Diligence. Following the Due Diligence Period,
Buyer may still terminate the contract for any other reason permitted under the contract terms or
North Carolina law.
(g) CLOSING SHALL CONSTITUTE BUYER’S ACCEPTANCE OF THE PROPERTY IN ITS
THEN EXISTING CONDITION UNLESS PROVISION IS OTHERWISE MADE IN WRITING.
6. PROPERTY AND OWNERS’ ASSOCIATION DISCLOSURE STATEMENT:
Buyer has received a copy of the North Carolina Residential Property and Owners’ Association Disclosure
Statement prior to signing this Contract.
Owner is exempt from furnishing a North Carolina Residential Property and Owners’ Association Disclosure
Statement because:
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. An addendum providing such disclosure: is
attached; is not applicable.
MECHANICAL EQUIPMENT AND BUILT IN APPLIANCES: All such equipment is sold "as-is" without
warranty, or shall be in good working order on the date of closing. Any repairs needed to mechanical
equipment or appliances, if any, shall be the responsibility of Seller Buyer.
UTILITIES: Water is provided to the property by , Sewer is provided
by . Gas is provided by .
Electricity is provided by .
Other:
The present condition of all utilities is subject to investigation by Buyer during the Due Diligence Period (see, 5.
BUYER’S DUE DILIGENCE PROCESS, above).
.
7. CLOSING DATE: The closing of the sale will follow the expiration of the Due Diligence Period by one or more
days and be designated as on or before: , 20 , unless extended pursuant to the terms hereof.
Closing may be extended by agreement of the parties in writing.
8. TITLE AND CONVEYANCE: Seller is to convey title to Buyer by Warranty Deed or (as
appropriate) and provide Buyer with a Certificate of Title prepared by an attorney, title or abstract company upon
whose Certificate or report title insurance may be obtained from a title insurance company qualified to do and
doing business in the state of North Carolina. Seller will also execute a Bill of Sale, if necessary, for the transfer
of any personal property. Seller shall, prior to or at closing, satisfy all outstanding mortgages, deeds of trust and
special liens affecting the subject property which are not specifically assumed by Buyer herein. Title shall be
good and marketable, subject only to (a) covenants, conditions and restrictions of record, (b) public, private utility
easements and roads and rights-of-way, (c) applicable zoning ordinances, protective covenants and prior mineral
reservations,
(d) special and other assessments on the property, if any, (e) general taxes for the year and subsequent
years and (e) other: .
Seller agrees to use his best efforts to deliver to Buyer as soon as reasonably possible after the Effective date of
this Contract, copies of all the information in possession of or available to Seller, including but not limited to: title
insurance, policies, attorney’s opinions on title surveys, covenants, deeds, notes and deeds of trust and easements
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relating to the Property. Seller authorizes (1) any attorney presently or previously representing Seller to release
and disclose any title insurance policy in such attorney’s file to Buyer and both Buyer’s and Seller’s agents and
attorneys; and (2) the Property’s title insurer or its agent to release and disclose all materials in the Property’s title
insurer’s or title agent’s file to Buyer and both Buyer’s and Seller’s agents and attorneys.
A title report shall be provided to Buyer at least 5 days prior to the Closing Date. If not provided within 5
days of the Closing Date, but within less than 5 days, the Closing Date shall be automatically pushed back 5
days hours from its stated date. If there are title defects, Buyer, at Buyer's option, may either (a) if defects
cannot be cured by designated closing date, cancel this contract, in which case all earnest money deposited
shall be returned, (b) accept title as is, or (c) if the defects are of such character that they can be remedied
by legal action within a reasonable time, permit Seller such reasonable time to perform curative work at
Seller's expense, via an agreement signed by the parties. In the event that the curative work is performed by
Seller, the time specified herein for closing of this sale shall be extended for a reasonable period necessary for
such action. Seller represents that the property may be legally used as zoned and that no government agency has
served any notice to Seller requiring repairs, alterations or corrections of any existing condition except as stated
herein.
9. POSSESSION AND CONVEYANCE OF TITLE: Seller shall deliver possession of the Property to Buyer
at closing. Title shall be conveyed to Buyer, if more than one as Joint tenants with rights of survivorship,
tenants in common, Other: Prior to closing the property shall remain in the possession of Seller
and Seller shall deliver the property to Buyer in substantially the same condition at closing, as on the date of this
contract, reasonable wear and tear excepted.
10. CLOSING COSTS AND EXPENSES: The following closing costs shall be paid as provided. (Leave
blank if the closing cost does not apply.)
Closing Costs Buyer Seller Both*
Attorney Fees
Title Insurance
Title Abstract / Report / Certificate
Property Insurance
Recording Fees
Appraisal
Survey
Termite Inspection
Origination fees
Discount Points
If contingent on rezoning, cost and expenses of rezoning
Other:
All other closing costs
* 50/50 between buyer and seller.
11. PRORATIONS: Taxes for the current year, interest, maintenance fees, assessments, dues and rents, if
any, 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 a loan is
assumed and the lender maintains an escrow account, the escrow account must be transferred to Buyer without
any deficiency. Buyer shall reimburse Seller for the amount in the transferred account. Buyer shall pay the
premium for a new insurance policy. If taxes are not paid at or prior to closing, Buyer will be obligated to pay
taxes for the current year.
12. CASUALTY LOSS: If any part of the Property is damaged or destroyed by fire or other casualty loss
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after the effective date of the contract, Seller shall restore the Property to its previous condition as soon as
reasonably possible. If Seller fails to do so due to factors beyond Seller’s control, Buyer may either (a) terminate
this contract and the earnest money will be refunded to Buyer, (b) extend the time for performance and the
Closing Date will be extended as necessary, or (c) accept the Property in its damaged condition and accept an
assignment of insurance proceeds.
13. DEFAULT: If Buyer fails to comply with this contract, Buyer will be in default, and Seller may either (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 evidence of clean title, Buyer may either (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 a refund
of the earnest money. If Seller fails to comply with this contract for any other reason, Seller will be in default and
Buyer may either (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.
14. ATTORNEY'S FEES: The prevailing party in any legal proceeding brought under or with respect to the
transaction described in this contract is entitled to recover from the non-prevailing party all costs of such
proceeding and reasonable attorney’s fees.
15. 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 Buyer and (b) assumed loans will not be in default. If any
representation in this contract is untrue on the Closing Date, this contract may be terminated by Buyer and the
earnest money will be refunded to Buyer. All representations contained in this contract will survive closing.
16. FEDERAL TAX REQUIREMENT: If Seller is a "foreign person", as defined by applicable law, or if
Seller fails to deliver an affidavit that Seller is not a "foreign person", then Buyer 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. IRS regulations require filing written reports if cash in excess of
specified amounts is received in the transaction.
17. AGREEMENT OF PARTIES: This contract contains the entire agreement of the parties and cannot be changed
except by their written agreement.
18. 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 machine as follows:
To Buyer at: To Seller at:
Telephone ( ) Telephone ( )
Facsimile ( ) Facsimile ( )
19. ASSIGNMENT: This agreement may not be assigned by Buyer without the consent of Seller. This agreement may be
assigned by Seller and shall be binding on the heirs and assigns of the parties hereto.
20. PRIOR AGREEMENTS: This contract incorporates all prior agreements between the parties, contains the entire and
final agreement of the parties, and cannot be changed except by their written consent. Neither party has relied
upon any statement or representation made by the other party or any sales representative bringing the parties
together. Neither party shall be bound by any terms, conditions, oral statements, warranties, or representations not
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herein contained. Each party acknowledges that he has read and understands this contract. The provisions of this
contract shall apply to and bind the heirs, executors, administrators, successors and assigns of the respective
parties hereto. When herein used, the singular includes the plural and the masculine includes the feminine as the
context may require.
21. NO BROKER OR AGENTS: The parties represent that neither party has employed the services of a real estate broker
or agent in connection with the property, or that if such agents have been employed, that the party employing said
agent shall pay any and all expenses associated with that party’s agent outside the closing of this agreement.
22. EMINENT DOMAIN: If the property is condemned by eminent domain after the effective date hereof, the Seller and
Buyer shall agree to continue the closing, or a portion thereof, or cancel this Contract. If the parties cannot agree,
this contract shall remain valid with Buyer being entitled to any condemnation proceeds at or after closing, or
be cancelled and the earnest money returned to Buyer.
23. OTHER PROVISIONS
24. TIME IS OF THE ESSENCE IN THE PERFORMANCE OF THIS AGREEMENT.
25. GOVERNING LAW: This contract shall be governed by the laws of the State of North Carolina.
26. DEADLINE LIST ( Optional) (complete all that apply ). Based on other provisions of Contract.
Deadline Date
Due Diligence Period deadline:
time:_____________
Delivery to Seller of Title Report (at least 5 days prior to Closing Date)
Closing Date
Whether or not listed above, deadlines contained in this Contract may be extended informally by a writing signed
by the person granting the extension except for the closing date which must be extended by a writing signed by
both Seller and Buyer.
EXECUTED the day of , 20 (THE EFFECTIVE DATE).
Buyer Seller
Buyer Seller
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EXHIBIT FOR DESCRIPTION OR ATTACH SEPARATE DESCRIPTION
RECEIPT
Receipt of Earnest Money is acknowledged.
Signature: Date: , 20
By:
Telephone ( )
Address
Facsimile ( )
City State Zip Code
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THIS IS A SEPARATE INSTRUCTION PAGE REGARDING LEAD-BASED PAINT DISCLOSURE
THIS PAGE IS NOT PART OF THE CONTRACT . IT IS PROVIDED BY USLF TO
AID THE SELLER IN COMPLYING WITH FEDERAL LEAD-BASED PAINT
DISCLOSURE LAW, FOR HOUSES BUILT PRIOR TO 1978.
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IMPORTANT!!!
NOTES CONCERNING LEAD-PAINT DISCLOSURE REQUIREMENTS
Introduction: If the dwelling was constructed PRIOR TO 1978, federal law REQUIRES a Lead-Based Paint
Disclosure Form to be attached to the sale contract, completed and signed by the seller and purchaser. If the
dwelling was constructed in 1978 or later, this form is not required. If in doubt about the timing of construction, use
the disclosure form. Whenever the form is used, the seller must also give the purchaser the EPA lead-based paint
pamphlet discussed below. Sellers must retain a copy of the signed disclosure form for no less than three years from
the date the sale closes.
Background: To protect families from exposure to lead from paint, dust, and soil, Congress passed the Residential
Lead-Based Paint Hazard Reduction Act of 1992. HUD and EPA require the disclosure of known information on
lead-based paint and related hazards before the sale of most housing built before 1978.
Requirements: Before the sale contract becomes enforceable, sellers must fully comply with lead-paint disclosure
law. Compliance is accomplished by:
(1) Fully completing and delivering to the buyers, as an attachment to the contract, the LEAD-BASED
PAINT DISCLOSURE form (the buyers also initial and sign this form), and
(2) Giving the buyers the EPA pamphlet entitled "Protect Your Family From Lead In Your Home." (See the
download link for the pamphlet, below.)
Purchase the Disclosure Form: If you need to purchase a Lead-Based Paint Disclosure Form, you can easily do so
using USLF. http://www.uslegalforms.com/lead-paint-disclosure-forms.htm Click this link (or copy it into the
address window of you internet browser) and select your state. Two forms will be accessed. You want the “LEAD1”
form, for sales transactions ( not the “LEAD2” form for rentals). Click the “Information and Preview” link for more
info on the form, and then order the form.
The Free EPA Pamphlet: The seller must give the buyer the EPA-approved information pamphlet on identifying
and controlling lead-based paint hazards entitled "Protect Your Family From Lead In Your Home." You may obtain
and print this pamphlet free by clicking the following download link (or copying the link into the address window of
your internet browser):
http://www.epa.gov/lead/pubs/leadpdfe.pdf
The form is in .pdf format and you will need the free Adobe Acrobat Reader to view the form. In the unlikely
circumstance that the Adobe Acrobat Reader is not installed on your computer, you can download it free from
http://www.adobe.com/products/acrobat/readstep2.html . The download is quick and easy.
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