Fill and Sign the Purchase Residential Form

OPTION AGREEMENT FOR THE SALE AND PURCHASE OF REAL ESTATE RESIDENTIAL HOME WARNING: THIS CONTRACT HAS SUBSTANTIAL LEGAL CONSEQUENCES AND THE PARTIES ARE ADVISED TO CONSULT LEGAL AND TAX COUNSEL. This Option Agreement is made on this the ____ day of _________ , 20 __ , by and between _______________________________________________________ , hereinafter referred to as the” SELLER”, whether one or more, and _______________________________________________________ , hereinafter referred to as the “PURCHASER”, whether one or more. FOR AND IN CONSIDERATION of $10.00 and other good and valuable considerations, the receipt and sufficiency of which is hereby acknowledged, it is agreed as follows: 1. GRANT OF OPTION: The Seller does hereby grant unto the Purchaser the exclusive and irrevocable option to purchase, upon the terms and conditions hereinafter set forth, Seller's property situated in _______________ County, __________________ , with an address of ______________________________________________________ , 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): _______________________________________________________________________________________________ _______________________________________________________________________________________________ SEE ATTACHED EXHIBIT "A" FOR LEGAL DESCRIPTION 2. EXERCISE OF OPTION: This option to purchase may be exercised by the Purchaser at any time prior to midnight on ____________________ , 20 __ by notice in writing to the Seller addressed to the following address: ______________________________________________________________________ . All notices will be deemed delivered to Seller upon deposit in the U.S. Mail Certified, Return Receipt Requested, addressed to the above address. 3. DEFAULT BY PURCHASER: In the event of the failure of the Purchaser to exercise this option, or in the event of any default by the Purchaser after the exercise of this option, all money paid by the Purchaser to the Seller upon the execution of this Agreement, or upon any extension, shall be retained by the Seller as consideration for the granting of this Option to the Purchaser, and all rights of the Purchaser under this Agreement shall terminate. 4. TITLE: Within fifteen (15) days after the Purchaser has exercised this Option as hereinabove provided, the Seller shall deliver to the Purchaser, or to Purchaser's attorney, a Certificate of Title, title report or title abstract by a reputable attorney, title company or abstract company, upon which title report insurance can be obtained, covering the property described in paragraph I above which shall reflect that marketable fee simple title to the subject property is vested in Seller and that same is insurable by a title company of Purchasers choice. Said Certificate shall be subject only to taxes for the current year, easements, and rights of way of record, and prior mineral reservations. Should said Certificate reflect any other exceptions to the title unacceptable to Purchaser, Purchaser shall notify the Seller in writing of any defects within fifteen (15) days (the title review period) and the Seller shall have a reasonable time (but not more than 25 days) in which to make the title good and marketable or insurable, and shall use due diligence in an effort to do so. If after using due diligence the Seller is unable to make the title acceptable to Purchaser within such reasonable time, it shall be the option of the Purchaser either to accept the title in its existing condition with no further obligation on the part of the Seller to correct any defect, or to cancel this - 1 - Agreement. If this Agreement is thus canceled, all money paid by the Purchaser to the Seller upon the execution of this Agreement or upon any extension shall be returned to the Purchaser, and this Agreement shall terminate without further obligation of either party to the other. If title is acceptable to Purchaser, the closing shall occur within fifteen (15) days after expiration of the "title review period". At closing Seller shall convey title to Purchaser by Warranty Deed subject only to exceptions acceptable to Purchaser. 5. PURCHASE PRICE: The purchase price for the property shall be _______________________ ($ ______________ ). The purchase price after the application of the option money shall be paid by Purchaser to Seller as provided in paragraph 6. Closing shall take place within fifteen (15) days of Seller's delivery to Purchaser of an acceptable Title Certificate as provided for in Paragraph 4. 6. OPTION MONEY: Upon execution of this Option, Purchaser has paid unto Seller the sum of ___________________ ________________ ($ ______________ ) as "Option Money". In the event that Purchaser exercises the option to purchase this property within the initial option period or any extension thereof and is not in default in any other terms of this Agreement, said Option Money shall shall not apply toward the purchase price at closing. 7. EXTENSION: Purchaser shall be entitled to extend the time within which this Option may be exercised to midnight _______________ , 20 __ , by paying unto Seller in cash an additional sum of $ _________________ prior to the expiration of the initial option period and by giving notice in writing to Seller of Purchaser's election to extend the option. Upon closing of the sale within the extended option period, said sum shall apply toward the purchase price. 8. RIGHT OF ENTRY: During the term of this Option or any extension hereof, Purchaser shall be entitled to enter upon the property for the purpose of conducting soil tests, engineering studies, surveys and any other desired inspections of the property. 9. FINANCING: In the event this option is exercised, the following provisions apply with respect to financing: CASH SALE: This contract is not contingent on financing. Purchaser shall pay all cash at closing. OWNER FINANCING: Seller agrees to finance ______________ dollars of the purchase price pursuant to a promissory note from Purchaser 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 n the ____ day of _________ , 20 __ . NEW LOAN OR ASSUMPTION: Closing is contingent on Purchaser obtaining financing. Within _______ days after the effective date of this contract Purchaser 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 Purchaser has satisfied all of lender's financial requirements (those items relating to Purchaser's net worth, income and creditworthiness). If financing or assumption approval is not obtained within _______ days after the effective date hereof, this contract will terminate and the earnest money will be refunded to Purchaser. 10. EXPENSES OF SALE: In the event that Purchaser exercises this option to purchase the subject property, the following closing costs shall be paid as provided. (Leave blank if the closing cost does not apply.) Closing Costs Purchaser Seller Both* Attorney Fees Title Insurance Title Abstract or Certificate Property Insurance Recording Fees Appraisal Survey             - 2 - Closing Costs Purchaser Seller Both*                                     All other closing costs * 50/50 between Purchaser and seller. If Purchaser 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 (Purchaser) 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 (Purchaser) 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 (Purchaser) 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 (Purchaser) should satisfy himself/herself that the price and condition of the Property are acceptable. VA. If Purchaser is to pay the purchase price by obtaining a new VA-guaranteed loan: It is agreed that, notwithstanding any other provisions of this contract, Purchaser 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. Purchaser 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 Purchaser within _____________ calendar days from acceptance of this contract. This contract is conditional upon Purchaser's review and approval of the provisions of such loan documents. Purchaser consents to the provisions of such loan documents if no written objection is received by Seller from Purchaser within _____________ calendar days from Purchaser's receipt of such documents. If the lender's approval of a transfer of the Property is required, this contract is conditional upon Purchaser's obtaining such approval without change in the terms of such loan, except as may be agreed by Purchaser. If lender's approval is not obtained on or before _______________________________ , ____________ , 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 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 Purchaser 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 Purchaser's financial ability and creditworthiness, which approval shall be at Seller's sole and absolute discretion. In such case: (l) Purchaser shall supply to Seller on or before ___________________ , __________ , at, Purchaser's expense, information and documents concerning Purchaser's financial, employment and credit condition; (2) Purchaser consents that Seller may verify Purchaser's financial ability and creditworthiness; (3) any such information and documents received by Seller - 3 - 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 Purchaser on or before ___________________ , __________ , then Seller waives this condition 11. PROPERTY CONDITION: 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. Purchaser hereby represents that he has personally inspected and examined the above mentioned premises and all improvements thereon. Purchaser hereby acknowledges that unless otherwise set forth in writing elsewhere in this contract neither nor Seller nor Seller's representatives, if any, have made any representations concerning the present or past structural condition of the improvements. Purchaser accepts the property in it's "as-is" and present condition. Purchaser agrees that he will not hold Seller or its representatives responsible or liable for any present or future structural problems or damage to the foundation or slab of said property. 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 Purchaser. 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 accepted by Purchaser. 12. APPRAISAL, SURVEY AND TERMITE INSPECTION: Any appraisal of the property shall be the responsibility of Purchaser Seller. A survey is not required required, the cost of which shall be paid by Seller Purchaser. A termite inspection is not required required, the cost of which shall be paid by Seller Purchaser. If a survey is required it shall be obtained within 5 days of closing. 13. POSSESSION AND TITLE: Seller shall deliver possession of the Property to Purchaser at closing. Title shall be conveyed to Purchaser, 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 Purchaser in substantially the same condition at closing, as on the date of this contract, reasonable wear and tear excepted. 14. 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 Purchaser without any deficiency. Purchaser shall reimburse Seller for the amount in the transferred account. Purchaser shall pay the premium for a new insurance policy. If taxes are not paid at or prior to closing, Purchaser will be obligated to pay taxes for the current year. 15. CASUALTY LOSS: If any part of the Property is damaged or destroyed by fire or other casualty loss 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, Purchaser may either (a) terminate this contract and the earnest money will be refunded to Purchaser (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. 16. DEFAULT: If Purchaser fails to comply with this contract, Purchaser will be in default, and Seller may either (a) enforce - 4 - 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, Purchaser 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 Purchaser 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. 17. POSSESSION: Purchaser shall be entitled to possession of the property at closing. 18. TAXES: Taxes shall be prorated as of the date of closing. 19. DEFAULT: This contract shall be binding upon and inure to the benefit of the heirs, administrators and assigns of the parties hereto and upon default in any of the terms of this Agreement the defaulting party agrees to pay all costs of Court and a reasonable attorney's fee. 20. 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. 21. 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 Purchaser 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 Purchaser and the earnest money will be refunded to Purchaser. All representations contained in this contract will survive closing. 22. AGREEMENT OF PARTIES: This contract contains the entire agreement of the parties and cannot be changed except by their written agreement. 23. 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 Purchaser at: To Seller at:                                     Telephone       Telephone (       )       Facsimile (       )       Facsimile (       )       24. ASSIGNMENT: This agreement may may not be assigned by Purchaser 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. 25. 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 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. - 5 - 26. 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 outside the closing of this agreement. 27. EMINENT DOMAIN: If the property is condemned by eminent domain after the effective date hereof, the Seller and Purchaser 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 Purchaser being entitled to any condemnation proceeds at or after closing, or be cancelled and the earnest money returned to Purchaser. 28. RECORDING: This agreement may may not be recorded in the official records of __________ County, ____________________ . 29. OTHER PROVISIONS                                                             30. GOVERNING LAW: This contract shall be governed by the laws of the State of __________________ . - 6 - IN WITNESS WHEREOF, the parties have executed this Agreement on this the ____ day of _________ , 20 __ . Seller Purchaser Seller Purchaser STATE OF _______________ COUNTY OF _____________ PERSONALLY appeared before me, the undersigned authority, the within named, ________________________ ____________________________ , who acknowledged, signed, executed and delivered the above and foregoing agreement. DATED this the ____ day of _________ , 20 __ . ______________________________________ NOTARY PUBLIC My Commission Expires: ________________________ STATE OF _______________ COUNTY OF _____________ PERSONALLY appeared before me, the undersigned authority, the within named, ________________________ ____________________________ , who acknowledged, signed, executed and delivered the above and foregoing agreement. DATED this the ____ day of _________ , 20 __ . ______________________________________ NOTARY PUBLIC My Commission Expires: ________________________ - 7 - EXHIBIT “A”       - 8 -