VA Real Estate Agreement

VA Real Estate Agreement

This VA Real Estate Agreement (the Agreement) is made as of by and between Seller Name: whose address is , and Buyer Name: whose address is .

RECITALS

WHEREAS, Seller is the sole owner of that certain real property located at and legally described as (the Property); and

WHEREAS, Buyer desires to purchase and Seller desires to sell the Property upon the terms and conditions set forth in this Agreement and subject to Buyer obtaining financing acceptable to Buyer in its sole discretion, including but not limited to a VA loan approval if Buyer elects VA financing; and

WHEREAS, the parties intend that this Agreement allocate between them the responsibilities, costs and risks of the transaction and shall govern their respective rights and remedies.

NOW, THEREFORE, in consideration of the mutual promises contained herein and other good and valuable consideration, the sufficiency of which is acknowledged, the parties agree as follows:

1. PURCHASE AND SALE

1.1 Purchase Price. The total purchase price for the Property shall be $ (Purchase Price), payable as set forth in this Agreement.

1.2 Earnest Money. Buyer shall deliver earnest money in the amount of $ to within days of mutual execution of this Agreement, to be applied to the Purchase Price at Closing in accordance with the escrow instructions.

2. FINANCING CONTINGENCY

2.1 Buyer Contingency. This Agreement is contingent upon Buyer obtaining commitment for financing acceptable to Buyer, including any VA loan approvals Buyer chooses to pursue, by . If Buyer notifies Seller in writing prior to that date that Buyer has been unable to obtain such financing, Buyer may terminate this Agreement and the earnest money shall be returned to Buyer, except as otherwise provided herein.

2.2 Good Faith Processing. Buyer shall apply for loan processing promptly and shall provide documentation reasonably requested by lender. Seller shall cooperate in providing reasonable property information necessary for financing.

3. INSPECTIONS; VA REPAIRS

3.1 Inspections. Buyer, at Buyer’s expense, may obtain inspections of the Property within days after acceptance. Seller shall permit reasonable access for inspection and testing. Buyer shall provide any reports to Seller promptly.

3.2 VA Required Repairs. If Buyer’s financing involves a VA loan, and the VA appraisal or lender requires repairs that affect habitability or materially affect loan approval, Seller shall either (a) complete such repairs at Seller’s expense prior to Closing, or (b) deliver an agreed credit at Closing in an amount sufficient to cure the VA-required items as determined by the lender. If Seller elects not to cure required repairs and the lender will not fund, Buyer may elect to terminate and receive return of earnest money.

4. TITLE; CONVEYANCE

4.1 Title Evidence. At or prior to Closing, Seller shall furnish, at Seller’s expense, a marketable title commitment or other evidence of title reasonably acceptable to Buyer and Buyer’s lender, showing title vested in Seller subject only to permitted exceptions.

4.2 Conveyance. At Closing, Seller shall convey the Property by general warranty deed (or other deed customary in the jurisdiction) free and clear of liens and encumbrances except permitted exceptions. Title shall be transferred to Buyer subject to covenants, conditions, easements and restrictions of record, and applicable zoning laws.

5. CLOSING; POSSESSION; PRORATIONS

5.1 Closing Date. The Closing shall occur on , or such other date as the parties mutually agree in writing.

5.2 Possession. Possession of the Property shall be delivered to Buyer upon Closing, unless the parties agree otherwise in writing.

5.3 Prorations and Closing Costs. Real estate taxes, assessments, utilities, rents and other customary items shall be prorated as of Closing. Seller shall pay for curing existing title defects, and Buyer shall pay lender fees and loan-related costs, except as otherwise agreed in writing between the parties.

6. RISK OF LOSS

If, prior to Closing, the Property is materially damaged by fire, casualty, or other loss, Seller shall give Buyer written notice. If the cost to repair such damage is greater than , Buyer may elect to (a) terminate this Agreement and receive return of earnest money, or (b) proceed to Closing and receive an equitable credit or assignment of insurance proceeds to complete repairs. If Buyer proceeds and lender requires repairs as a condition of funding, Seller shall satisfy such requirements as set forth in Section 3.2.

7. REPRESENTATIONS AND WARRANTIES

7.1 Seller Representations. Seller represents and warrants to Buyer that: (a) Seller is the lawful owner of the Property and has full authority to enter into and perform this Agreement; (b) there are no pending actions, claims, or proceedings affecting the Property of which Seller has actual knowledge, except as disclosed to Buyer in writing; and (c) to Seller's knowledge, there are no material violations of building codes or environmental laws existing on the Property, other than those disclosed in writing to Buyer.

7.2 Buyer Representations. Buyer represents that Buyer has the legal capacity to enter into this Agreement and will act in good faith to obtain financing and complete the transaction in accordance with the terms hereof.

8. DEFAULT AND REMEDIES

8.1 Seller Default. If Seller fails to perform Seller’s obligations under this Agreement, Buyer may terminate and receive return of earnest money, or pursue specific performance and damages as permitted by law.

8.2 Buyer Default. If Buyer defaults and fails to close within the time provided after receiving notice of default, Seller may terminate this Agreement and retain earnest money as liquidated damages, or pursue other remedies available at law or in equity. The parties agree such remedies shall be cumulative and not exclusive.

9. NOTICES

9.1 Method. All notices required or permitted under this Agreement must be in writing and delivered by personal delivery, nationally recognized overnight courier, or certified mail, return receipt requested, to the addresses set forth below or to such other address as a party designates by notice.

10. TAXES; ASSESSMENTS

Real property taxes, assessments, utilities, and rents shall be prorated as of Closing. Any transfer taxes or documentary stamps imposed by reason of this transaction shall be paid by unless otherwise provided by applicable law or agreed in writing by the parties.

11. MISCELLANEOUS

11.1 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the state where the Property is located, excluding its conflicts of law rules.

11.2 Entire Agreement. This Agreement, together with any addenda and written escrow instructions executed by the parties, constitutes the entire agreement between Seller and Buyer concerning the Property and supersedes all prior agreements and understandings, whether written or oral.

11.3 Amendments and Waiver. Any amendment to this Agreement must be in writing and signed by both parties. No waiver of any provision shall be effective unless in writing and signed by the party waiving compliance.

11.4 Severability. If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall continue in full force and effect.

11.5 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together constitute one and the same instrument. Signatures transmitted by electronic means shall be valid and binding.

11.6 Attorney Fees. In the event of any dispute between the parties arising out of this Agreement, the prevailing party shall be entitled to recover reasonable attorneys' fees and costs as determined by a court of competent jurisdiction.

ADDITIONAL TERMS

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