Purchase Money Mortgage Form

Agreement to Purchase Condominium with Purchase Money Mortgage Financing by Seller, and Subject to Existing Mortgage

Agreement made on the day of of , 20, between

(Seller) of

(Purchaser), of

1. Property to be Purchased

Seller shall sell and convey, and Purchaser shall purchase, the following described property (hereinafter called Premises):

The condominium unit designated as Apartment in the building commonly known as at

which unit is so designated in a certain which establishes a plan for condominium ownership of the building and the land on which it stands (said building and land being hereafter jointly and severally referred to as Property), which Declaration is dated , and was recorded in the of county), in Book , Page , on .

The land upon which the building stands is bounded and described as follows:

Seller shall also sell and convey, and Purchaser shall also purchase an undivided % interest, in common with the other unit owners, in the common elements of the Property, as the same are described in the Declaration, together with the following:

Together with and subject to an easement, as long as the building shall stand, for the maintenance of any and all encroachments by or upon the unit, upon or by any other unit or units or common elements, now existing as a result of construction of the building, or which may later come into existence as a result of settling of the building or in any other way save deliberate act of the owner or owners of the encroaching unit or units.

Together with and subject to an easement in common with the other unit owners, to use all pipes, ducts, conduits, wires, cables, utility lines and the like, and other common elements, located in any of the other units or elsewhere on the property, which serve the unit here contracted to be sold.

Together with an exclusive easement for the use of the terrace to which the unit here contracted to be sold has exclusive access.

Together with Seller's undivided interest, if any, in streets as set forth in Section 11.

Subject to the provisions of the Bylaws, a true copy of which is annexed to the Declaration, as the same may be amended from time to time as provided in which shall constitute covenants running with the land and shall bind every person or persons for the time being having any interest or estate in the unit.

2. Personal Property

The sale also includes all fixtures and articles of personal property attached to or used in connection with the Premises, unless specifically excluded below. Seller states that they are paid for and owned by Seller free and clear of any lien other than the Existing Mortgage. They include but are not limited to plumbing, heating, lighting and cooking fixtures, bathroom and kitchen cabinets, mantels, door mirrors, venetian blinds, shades, screens, awnings, storm windows, window boxes, mail boxes, dishwashers, washing machines, clothes dryers, garbage disposal units, ranges, refrigerators, freezers, air conditioning equipment and installations, and wall to wall carpeting. Excluded from this sale are:

3. Use of Premises

The Purchaser agrees that the Premises will be used as a personal dwelling only.

4. Purchase Price

A. The purchase price is $, payable as follows:

1. On the signing of this contract, by certified or cashier’s check, the sum of $;

2. Assumption of the principal amount still unpaid on Existing Mortgage, said principal amount being set forth in Section 5 below;

3. By a Purchase Money Note and Deed of Trust (or Mortgage) from Purchaser to Seller in the amount of $; and

4. The sum of $ at Closing.

B. Said Purchase Money Note and Deed of Trust (or Mortgage) will also provide that it will remain subject to the prior lien of any Existing Mortgage, even though the Existing Mortgage is extended or modified in good faith. The Purchase Money Note and Deed of Trust (or Mortgage) shall be drawn in a standard FNMA type form.

C. If any required payments are made on an Existing Mortgage between now and Closing which reduce the unpaid principal amount of an Existing Mortgage below the amount shown in Section 5, then the balance of the price payable at Closing will be adjusted. Seller agrees that the amount shown in Section 5 is reasonably correct and that only payments required by the Existing Mortgage will be made.

D. If there is a mortgage escrow account that is maintained for the purpose of paying taxes, insurance, or other items, then Seller shall assign it to Purchaser, if it can be assigned. In that event Purchaser shall pay the amount in the escrow account to Seller at Closing.

5. Existing Mortgage

The Premises will be conveyed subject to the continuing lien of the Existing Mortgage as follows: Mortgage now in the unpaid principal amount of $ and interest at the rate of % per year, presently payable in installments of $ which include principal and interest, and with any balance of principal being due and payable on . Seller covenants that he will obtain any necessary consent to this sale from the Existing Mortgagee prior to Closing.

6. Consent to Sale Required

A. The Purchaser understands and agrees that this sale is subject to the prior written consent of the Board of Managers, as provided in the Bylaws. Seller agrees to submit a fully executed copy of this contract to the Board of Managers promptly following its execution. Purchaser agrees to submit to the Board promptly following the execution of this contract such references as may be required by the Board and to cooperate in any way reasonably required to obtain such consent, including personal appearance before the Board or a committee of the Board. The obtaining of such consent shall be the sole responsibility of the Purchaser.

B. If the Board shall refuse to give its consent to the sale, then unless such refusal was induced by the lack of cooperation of the Purchaser, the rights of the Purchaser shall be the same as if the Seller had been unable to transfer title in accordance with this contract, as specified in Section 17 of this contract.

7. Title

Seller shall give and Purchaser shall accept such title as will be willing to approve and insure in accordance with its standard form of title policy, subject only to the condominium plan; the Existing Mortgage; recorded easements, applicable zoning ordinances, recorded protective covenants and prior recorded mineral reservations.

8. Closing Defined and Form of Deed

Closing means the settlement of the obligations of Seller and Purchaser to each other under this contract, including the payment of the purchase price to Seller, and the delivery to Purchaser of a warranty deed in proper statutory form for recording so as to transfer full fee simple ownership to the Premises, free of all encumbrances except as stated in this agreement. The following Closing costs shall be paid as follows:

A. Title Insurance Company’s fees: ;

B. Attorney's Fee: ;

C. Appraisal: ;

D. Termite Certificate: ;

E. Recording Fees: ;

F. Other Closing Costs: ;

9. Time and Place of Closing

The Closing will take place at the office of at , at , on .

10. Broker

Purchaser states that Purchaser has not dealt with any broker in connection with this sale other than and Seller agrees to pay the broker the commission earned as a result of this sale (pursuant to separate agreement).

11. Streets

This sale includes all of Seller's undivided ownership and rights, if any, in any land lying in the bed of any street or highway, opened or proposed, in front of or adjoining the Property to the center line of the street or highway.

12. Mortgagee’s Certificate; Statement of Unpaid Common Charges

A. Seller agrees to deliver to Purchaser at Closing a certificate dated not more than days before Closing signed by the holder of each Existing Mortgage, in form for recording, certifying the amount of the unpaid principal and interest, date of maturity, and rate of interest. Seller shall pay the fees for recording such certificate. If the holder of a mortgage is a bank or other institution insured by the FDIC, it may, instead of the certificate, furnish an unqualified letter dated not more than days before Closing containing the same information. Seller states that any Existing Mortgage will not be in default at the time of Closing.

B. Seller agrees to deliver to Purchaser at Closing a written statement from the Board of Managers setting forth the amount, if any, of the unpaid common charges accrued against the unit here contracted to be sold.

13. Apportionments

The following are to be prorated as of midnight of the day before Closing:

A. Common charges;

B. Interest on Existing Mortgage;

C. Premiums on existing transferable insurance policies and renewals of those expiring prior to Closing; and

D. Taxes, water charges, and sewer rents on the basis of the fiscal period for which assessed.

If Closing shall occur before a new tax rate is fixed, the apportionment of taxes shall be based on the old tax rate for the preceding period applied to the latest assessed valuation. Any errors or omissions in computing apportionments at Closing shall be corrected. This provision shall survive Closing.

14. Water Meter Readings

If there be a water meter on the Premises, Seller shall furnish a reading to a date not more than days before Closing date and the unfixed meter charge and sewer rent, if any, shall be apportioned on the basis of such last reading.

15. Allowance for Unpaid Taxes and Other Charges

Seller has the option to credit Purchaser as an adjustment of the purchase price with the amount of any unpaid taxes, assessments, water charges, and sewer rents, together with any interest and penalties to a date not less than business days after Closing, provided that official bills computed to the date are produced at Closing.

16. Use of Purchase Price to Pay Encumbrances

If there is anything else affecting the sale which Seller is obligated to pay and discharge at Closing, Seller may use any portion of the balance of the purchase price to discharge it. As an alternative, Seller may deposit money with the title insurance company employed by Purchaser and required by it to assure its discharge, but only if the title insurance company will insure Purchaser's title clear of the matter or insure against its enforcement out of the Premises. Upon request, made within a reasonable time before Closing, the Purchaser agrees to provide separate certified checks as requested to assist in clearing up these matters.

17. Seller’s Inability to Convey; Limitation of Liability

If Seller is unable to transfer title to Purchaser in accordance with this contract, Seller's sole liability shall be to refund all money paid on account of this contract, plus all charges made for examining the title. Upon such refund and payment this contract shall be considered canceled, and neither Seller nor Purchaser shall have any further rights against the other.

18. Condition of Property

Purchaser has inspected the Premises and the personal property included in this sale and is thoroughly acquainted with their condition. Purchaser agrees to purchase them "as is" and in their present condition subject to reasonable use, wear, tear, and natural deterioration between now and Closing. Purchaser shall have the right, after reasonable notice to Seller, to inspect them before Closing.

19. 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.

20. Governing Law

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

21. 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.

22. 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.

23. 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.

24. Counterparts

This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute but one and the same instrument.

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