Basic Purchase Agreements - Nebraska State Bar Association

Transcription

Basic Purchase Agreements
Benjamin E. Moore
Rembolt Ludtke LLP, Lincoln
August 12, 2015
University of Nebraska College of Law, Lincoln
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Real Estate
Purchase Agreements
By Ben Moore
Biographical Sketch
Ben Moore is a partner in the law firm of Rembolt Ludtke LLP, in
Lincoln, Nebraska. He received his undergraduate degree in
accounting and finance at Kansas State University, and his law degree
from the University of Nebraska College of Law. He was admitted to
the Nebraska State Bar in 2009. His practice areas include business
law, real estate, estate planning, bankruptcy, and taxation.
The law firm of Rembolt Ludtke is located at 1128 Lincoln Mall, Ste.
300, Lincoln, Nebraska ([email protected])
The Statute of Frauds
• Neb. Rev. Stat. Section 36-105 provides that a contract
for the sale of land is void “unless the contract or some
note or memorandum thereof be in writing and signed by
the party by whom the . . . sale is to be made.”
1
Minimum Requirements
• In Ord v. Benson, 163 Neb. 367, 370 (1956) the
Nebraska Supreme Court stated:
A memorandum, in order to make enforceable a contract within the
statue [of frauds] may be any document or writing, formal or
informal, signed by the parties to be charged . . . which states with
reasonable certainty, (a) each party to the contract either by his own
name or by such a description as will serve to identify him . . . and
(b) the land . . . to which the contact relates, and (c) the terms and
conditions of all the promises constituting the contract. . . .”
Types of Purchase Agreements
• Short Term Contracts
• Installment Contracts
• Option Agreements
Other:
• Direct (Like-Kind) Exchange Agreements
Drafting Considerations
• Seller’s Desires
– To be paid as and when agreed
– To be able to walk away from any problems discovered after the
sale of the real estate (avoid litigation)
– To obtain favorable tax treatment (1031 exchange)
• Buyer’s Desires
– To acquire the real estate
– To obtain the benefit of the bargain
– To hold Seller responsible for any problems discovered after
acquisition of the real estate
2
12 Tips for Drafting Better
Real Estate
Purchase Agreements
1. Authority to Sell Property
• Always identify the legal owner(s)of the property
– Co-Owners and Spouses)
• A married person cannot convey a property unless the instrument is
executed and ACKNOWLEDGED by both husband and wife.
• “Deed to convey homestead is void if not executed by both husband
and wife” Krueger v. Callies, 190 Neb. 376 (1973).
– Partnerships, Corporations, and Limited Liability Companies
• Who has authority to sign on behalf of the entity
• Administrative Dissolutions and issues of authority
• Drafting Consideration:
– Identify marital status in purchase agreement (and deed)
– Draft purchase agreements with notarized signatures
2. Correct Legal Description
• Most common problems:
– Legal descriptions that describe wrong parcel or less than entire
parcel
– Metes and bounds legal descriptions that do not “close”
– Review legal description for any obvious errors
– Include language in purchase agreement for Seller to obtain a
survey
• Correcting Errors After Closing on the Sale:
– Equity is available to reform a legal description in a deed where
there is a mistake in the description that is “mutual to both
parties.” Cunningham v. Covalt, 204 Neb. 512, 518 (1979)
3
3. Adequate Consideration
• Situation: Inspection provision in purchase agreement gives Buyer
the right to terminate the purchase agreement and receive a refund
of earnest deposit if “the condition of the real property is
unsatisfactory in Buyer’s subjective discretion”
• Is this an option agreement unsupported by consideration?
– Is it saved by an implied covenant of good faith and fair dealing?
– See Steiner v. Thexton, 226 P.3d 359 (Cal. 2010).
– If representing Buyer, consider including an attorney approval
clause as a condition precedent. See Moran v Erk, 901 N.E.2d
187 (N.Y. 2008).
4. Property Seller Disclosure Statement
• Neb. Rev. Stat. Section 76-2,120 requires the delivery of
a Property Seller Disclosure Statement by the Seller.
– Applies to residential real estate
– Must be delivered prior to the Buyer signing purchase agreement
– Neb. Rev. Stat. 76-2,120(12) specifies a cause of action for
failure to comply with the statute.
– Seller’s counsel: How much do you disclose?
– Buyer’s counsel: Add Seller representations that there are no
material defects in the property known to Seller that are not set
forth on the Seller Property Condition Disclosure Statement.
5. Proration of Real Estate Taxes
• Real Estate Property Taxes are Prorated Differently in
various parts of Nebraska Based on Local Custom
– Douglas or Sarpy County
• Real estate taxes which become delinquent in the year in which the
closing takes place are pro-rated.
– Any other Nebraska County
• Real estate taxes which are assessed in the year in which the
closing taxes placed are pro-rated
– Always check where the real estate is located and include
correct formula for tax proration.
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6. Mandatory Repair Obligations
• Situation 1: Purchase Agreement provides that Seller
will repair all items discovered by an inspection not to
exceed $1,000.
• Situation 2: Purchase Agreement provides that if
inspections disclose presence of radon Seller will pay
the cost of mitigation [Same scenario with termites]
– If representing the seller, avoid provisions which obligate the Seller to
make repairs up to a certain cap. A good home inspector will always
find something to fix, and Buyers will use the full repair allowance.
– If representing the buyer, give Buyer as much control over repairs as
possible
7. Seller-Financed Sales
• Situation: Buyer cannot obtain financing to purchase the
house, so Seller agrees to sell the house on an
“installment sale.”
• Problems
– Lack of promissory note makes it easier for Buyer to assert
defenses to payment on the installment sale contract
– Lack of deed of trust makes it more time consuming and costly to
foreclose the equitable mortgage.
• Drafting Consideration
– Use a promissory and deed of trust; attach as Exhibits
8. Representations and Warranties
1. In almost all Purchase Agreements, the buyer and the seller make
representations and warranties to each other ("Reps and
Warranties").
2. Buyer wants the Seller to make broad and absolute warranties,
while Seller does not want to make any warranties, or wants to
make only warranties that are narrow, qualified, or limited in scope.
3. Narrowing Reps and Warranties:
1.
2.
3.
Limit the SIZE of Reps and Warranties to things that are within a party’s
knowledge and not easily discoverable by the other party
Limit the SCOPE of Reps and Warranties to a party’s actual knowledge
Limit the DURATION of Reps and Warranties
•
Reps and Warranties do not automatically survive Closing
•
For Reps and Warranties that expressly survive Closing, whether the default five-year
statute of limitations claim is too long.
–
Union Pacific Land Resources Corp. v. Park Towne, Ltd. 212 Neb. 83 (1982)
5
9. Financing Contingencies
• Situation: Buyer of commercial 4-plex rental property
adds a financing contingency to the purchase agreement
requiring Buyer to close only if Buyer obtains a loan at a
rate not to exceed 3.5% annual, for a term of not less
than 20 years.
• Problem: Most commercial loans for this type of
property are between 5 and 10 years.
• Drafting Consideration: Evaluate whether the
requested terms are reasonable.
10. Title Insurance Commitment
• Review exceptions listed on title commitment
– Watch for deeds containing restrictive covenants or rights of first
refusal
– Watch for covenants and restrictions, and confirm there are no
restrictions against Buyer’s intended use.
• Understand what the title policy covers (and not cover)
and what types of policy endorsements might be
appropriate for Buyer.
• Drafting Considerations
– Require Seller to provide a preliminary title commitment not less
than 10 days prior to closing to allow sufficient time for review.
11. For Sale By Owner Transactions
• Residential Lead-Based Paint Hazard Reduction Act
– Mandatory disclosure of known information on lead-based paint
before the sale or lease of most housing built before 1978.
• Lead-based paint disclosure agreement
• Lead-based paint pamphlet/brochure
• Buyer and Seller are both personally known by attorney
– Attorney should clearly identify and communicate who is being
represented (and not represented) in the transaction.
• Foreign Investment in Real Property Tax Act
– Buyer should require a Non-Foreign Seller Affidavit
• IRS Reporting Requirements
– Issue a 1099-S
6
12. Reliance on Forms
• Every real estate transaction is different
• Use “forms” with caution, and develop a checklist to spot
issues for various transactions, then draft accordingly.
• Recognize that local custom regarding real estate sales
varies by county, state, and region. If you are not
familiar with an area, work with a real estate broker,
escrow company, or real estate attorney to identify
important local customs.
Real Estate Resources
• The Nebraska NCLE Real Estate Practice Manual
(a/k/a the “Red Book”) covers:
–
–
–
–
–
–
–
–
–
–
Like Kind Exchanges
Seller Property Condition Disclosure Statement
The Purchase Agreement
Surveys, Descriptions and Boundaries
Financing: Mortgages, Trust Deeds, Land Contracts
Title Insurance
Nebraska Title Standards
Deeds
Escrow
Condominiums and Housing Associations
Questions?
7
Page 1 of4
7/11J1Z
NEBRASKA REAL ESTATE COMMISSION
SELLER PROPERTY CONDITION DISCLOSURE STATEMENT
Residential Real Property
THIS DISCLOSURE STATEMENT IS BEING COMPLETED AND DELIVERED IN ACCORDANCE WITH NEBRASKA LAW. NEBRASKA LAW REQUIRES THE SELLER TO
COMPLETE THIS STATEMENT (NEB. REV. STAT. §76-2,120).
How long has the seller owned the property? ___ year(s)
Is seller currently occupying the property? (Circle one)
YES
I NO
If no, has the seller ever occupied the property? (Circle one) YES
If yes, how long has the seller occupied the property? ___ year(s)
I NO
If yes, when? From ___ (year) to ___ (year)
This disclosure statement concerns the real property located a t - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - in the city of
County of_ _ _ _ _ _ _ _ _ _ _ _ _ , State of Nebraska and legally described as:
This statement is a disclosure of the condition of the real property known by the seller on the date on which this statement is signed. This statement
is NOT a warranty of any kind by the seller or any agent representing a principal in the transaction, and should NOT be accepted as a substitute for
any inspection or warranty that the purchaser may wish to obtain. Even though the information provided in this statement is NOT a warranty, the
purchaser may rely on the information contained herein in deciding whether and on what terms to purchase the real property. Any agent
representing a principal in the transaction may provide a copy of this statement to any other person in connection with any actual or possible sale of
the real property. The information provided in this statement is the representation of the seller and NOT the representation of any agent, and is NOT
intended to be part of any contract between the seller and purchaser.
Seller please note: you are required to complete this disclosure statement IN FULL. If any particular item or matter does not apply and there is no
provision or space for indicating, insert "N/A" in the appropriate box. If age of items is unknown, write "UNK" on the blank provided. If the property
has more than one item as listed below please put the number in the appropriate box. For example - if the home has three room air conditioners, one
working, one not working, and one not included, put a "1" in each of the 'Working", "Not Working", and "None/Not Included" boxes for that item, and
a "3" on the line provided next to the item description to indicate total number of item. You may also provide additional explanation of any item in the
comments section in PART Ill.
SELLER STATES THAT, TO THE BEST OF THE SELLER'S KNOWLEDGE AS OF THE DATE THIS DISCLOSURE STATEMENT IS COMPLETED AND SIGNED BY
THE SELLER, THE CONDITION OF THE REAL PROPERTY IS:
PART I - If there is more than one of any item in this Part, the statement made applies to each and all of such items unless otherwise noted in the
Comments section in PART Ill of this disclosure statement, or number separately as provided in the instructions above. If an item in this Part is not on the
property, or will not be included in the sale, check only the "None/Not included" column for that item.
Do Not
Not
Know If
Working Working Working
Section A -Al!l!liances
None/
Not
Included
Section B - Electrical S!stems
Do Not
None/
Not
Know If
Not
Working Working Working lnduded
1. Electrical service panel capacity
_ _ AMP Capacity (If known)
fuse
circuit breakers
1. Refrigerator
2. Clothes Dryer
2. Celling fan(s)
( _ _ _ number I
3. Garage door opener(s)
( _ _ _ number I
4. Garage door remote(s)
( _ _ _ number I
5. Garage door keypad(s)
( _ _ _ number)
3. Clothes Washer
4. Dishwasher
5. Garbage Disposal
6. Freezer
6. Telephone wiring and Jacks
7.0ven
7. Cable TV wiring and jacks
8.Range
8. Intercom or sound system wiring
9. Built-In speakers
9. Cooktop
10. Smoke detectors
10. Microwave oven
( _ _ _ number I
11. Fire alarm
11. Built-In vacuum system and equipment
12. Room ventilation/exhaust fan L_number)
12. Range ventllatlon systems
13. 220 volt service
13.Gasgrlll
14. Room air conditioner
( _ _ number)
15. TV antenna I Satellite dish
16. Trash compactor
Seller's Initials _ J _ _
14. Security System
owned
Leased
_ _ Central station monitoring
--
--
15. Have you experienced any problems with the
electrical system or Its components?
YES
NO
--
--
If YES, explain the condition in the
comments section in PART Ill of this
disclosure statement.
Property A d d r e s s - - - - - - - - - - - - - - - - Buyer's Initials_}__
Page 2 of 4
7/2012
Section C - Heating and Cooling Systems
Working
Do Not
Not
Know If
Working Working
None/
Not
Included
1. Air purifier
Working
Do Not
Not
Know If
Working Working
None/
Not
Included
Working
Do Not
Not
Know If
Working Working
None/
Not
Included
Section D - Water Systems
1. Hot tub/ whirlpool
2. Attic fan
2. Plumbing (water supply}
3. Whole house fan
3. Swimming pool
4. Central air conditioning
_ _ year installed (if known}
5. Heating system
Gas
Electric
___ Other (specify
--
--
4. a. Underground sprinkler system
b. Back-flow prevention system
5. Water heater ___ year installed (if known)
I
6. Water purifier ___ year installed (If known}
6. Fireplace I Fireplace Insert
7. Water softener
7. Gas log (fireplace)
8. Well system
--- Rent - - Own
8. Gas starter (fireplace)
Section E - Sewer Systems
9. Heat pump
_ _ year installed (if known)
1. Plumbing (water drainage)
10. Humidifier
--
I
2. Sump pump (discharges to
11. Propane Tank
Rent
Own
3. Septic System
--
12. Wood-burning stove
_ _ year Installed (if known}
PART II - In Sections A, B, C, and D if the answer to any item is "YES", explain the condition in the comments Section in PART Ill of this disclosure statement.
Section A. Structural Conditions - If there is more than one of any item listed in this Section, the statement made applies to each and all of such items unless otherwise
noted in the comment section in PART Ill of this disclosure statement.
Se13ign A - Structural Conditions
1. Age of roof (if known) _ _ _ year(s}
YES
NO
N/A
N/A
Do Not
Know
Section A - Structurilll Com!b;lgns
10. Year property was built
2. Does the roof leak?
(if known)
11. Has the property experienced any moving or
settling of the following:
3. Has the roof leaked?
YES
NO
N/A
N/A
------
------
Do Not
Know
------
- Foundation
4. Is there presently damage to the roof?
5. Has there been water Intrusion In the
basement or crawl space?
6. Has there been any damage to the real
property or any of the structures thereon
due to the following occurrences Including,
but not limited to, wind, hall, fire, flood,
wood-destroying Insects, or rodents?
7. Are there any structural problems with the
structures on the real property?
- Floor
-Sidewalk
8. Is there presently damage to the chimney?
- Retaining wall
-Wall
-Patio
-Driveway
9. Are there any windows which presently
leak, or do any Insulated windows have any
broken seals?
12. Any room additions or structural changes?
Section B. Environmental Conditions - Have any of the following substances, materials, or products been on the real property? If tests have been conducted for any of the
following, provide a copy of all test results, if available.
Section I
- ~v!ronmeml 9lo!illtigo1
1.Asbestos
2. Contaminated soil or water
(Including drinking water)
YES
NO
DoNot
Know
~13ign
I - Envirgnm1ngil ~nditign1
YES
NO
Do Not
Know
5. Radon gas
6. Toxic materials
7. Underground fuel, chemical or other type of
storage tank?
3. Landfill or burled materials
4. Lead-based paint
8. Hazardous substances, materials or products
Identified by the Environmental Protection
Agency or Its authorized Nebraska Deslgnee
(excluding ordinary household cleaners)
Seller's Initials __J__ Property Address _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Buyer's lnitials__J__
Page 3 of4
7/2012
Section C. Title Conditions - Do any of the following conditions exist with regard to the real property?
Section C - Title Conditions
YES
NO
Do Not
Know
Section C - Title Conditions
which are shared?
2. Any easements, other than normal utility
easements?
10. Does ownership of the property entitle the owner
to use any "common area• facilities such as pools,
tennis courts, walkways, or other common use
areas?
3. Any encroachments?
11. Is there a common wall or walls?
1. Any features, such as walls, fences and driveways
4. Any zoning violations, non-conforming uses, or
violations of "setback" requirements?
YES
NO
Do Not
Know
YES
NO
Do Not
Know
b. Is there a party wall agreement?
12. Any lawsuits regarding this property during the
ownership of the seller?
5. Any lot-line disputes?
6. Have you been notified, or are you aware of, any
work planned or to be performed by a utility or
municipality dose to the real property including,
but not limited to sidewalks, streets, sewers,
water, power, or gas lines?
13. Any notices from any governmental or quasigovernmental agency affecting the real property?
14. Any unpaid bills or claims of others for labor
and/or materials furnished to or for the real
property?
15. Any deed restrictions or other restrictions of
record affecting the real property?
7. Any planned road or street expansions,
improvements, or widening adjacent to the real
property?
8. Any condominium, homeowners', or other type of
association which has any authority over the real
property?
16. Any unsatisfied Judgments against the seller?
17. Any dispute regarding a right of access to the real
property?
18. Any other title conditions which might affect the
rea I property?
9. Any private transfer fee obligation upon sale?
Section D. Other Conditions - Do any of the following conditions exist with regard to the real property?
Section D - Other Conditions
YES
NO
Do Not
Know
1. a. Are the dwelling(s) and the Improvements
connected to a public water system?
Section D - Other Conditions
8. a. Is the real property in a flood plain?
b. Is the real property in a floodway?
b. Is the system operational?
9. Is trash removal service provided to the real
property? If so, are the trash services
___ public ___ private
2. a. Are the dwelling(s) and the improvements
connected to a private, community (non-public),
or Sanitary Improvement District (SID) water
system?
10. Have the structures been mitigated for radon?
If yes, when? _ J _ J
11. Is the property connected to a natural gas system?
3. If the dwelling(s) and the Improvements are
connected to a private, community (non-public)
or SID water system Is there adequate water
supply for regular household use (I.e. showers,
laundry, etc.)?
4. a. Are the dwelllng(s) and the Improvements
connected to a public sewer system?
12. Has a pet lived on the property?
Type(s)
13. Are there any diseased or dead trees, or shrubs on
the real property?
14. Are there any flooding, drainage, or grading
problems In connection to the real property?
connected to a community (non-public) or SID
sewer system?
15. a. Have you made any Insurance or manufacturer
claims with regard to the real property?
b. Were all repairs related to the above claims
completed?
connected to a septic system?
16. Are you aware of any problem with the exterior
wall-covering of the structure Including, but not
llmlted to, siding, synthetic stucco, masonry, or
other materials?
7. Has the main sewer fine from the house ever
backed up or exhibited slow drainage?
Section E. Cleaning I Servicing Conditions - Have you ever performed or had performed the following?
Section E - Cleanin1 l Servie!!I
'51!!d!llll!!I
1. Servicing of air conditioner
2. Cleaning of fireplace, lndudlng chimney
3. Servidng of furnace
YEAR
YES
NO
None/
Do Not
Not
Know Included
(State most recent year performed)
~e!i!!gn E - Cleanln1
l ~i=rvii;;in1 Conditions
YEAR
YES
NO
None/
Do Not
Not
Know Included
6. Cleaning of wood-burning stove, lndudlng
chimney
7. Treatment for wood-destroying Insects or
rodents
4. Professional Inspection of
furnace A/C (HVAC) System
8. Tested well water
5. Servidng of septic system
9. Serviced I treated well water
Seller's Initials__}__ Property Address _ _ _ _ _ _ _ _ _ _ _ _ _ __
Buyer's Initials__}__
Page4 of4
7/2012
PART Ill - Comments. Please reference comments on items responded to above in PART I or 11, with Section letter and item number.
Note: Use additional pages if necessary.
If checked here ___ PART Ill is continued on a separate page(s)
SELLER'S CERTIFICATION
Seller hereby certifies that this disclosure statement, which consists of _ _ pages (including additional comment pages), has been completed by Seller;
that Seller has completed this disclosure statement to the best of Seller's belief and knowledge as of the date hereof, which is the date this disclosure
statement is completed and signed by the Seller.
Seller's Signature _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Date---------
Seller's Signature _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Date---------
ACKNOWLEDGEMENT OF RECEIPT OF DISCLOSURE STATEMENT, UNDERSTANDING AND CERTIFICATION
I/We acknowledge receipt of a photocopy of the above Seller Property Condition Disclosure Statement; understand that such disclosure statement is
NOT a warranty of any kind by the seller or any agent representing any principal in the transaction; understand that such disclosure statement should
not be accepted as a substitute for any inspection or warranty that I/we may wish to obtain; understand the information provided in this disclosure
statement is the representation of the seller and not the representation of any agent, and is not intended to be part of any contract between the seller
and purchaser; and certify that disclosure statement was delivered to me/us or my/our agent on or before the effective date of any contract entered
into by me/us relating to the real property described in such disclosure statement.
Purchaser's Signature _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Date---------
Purchaser's S i g n a t u r e - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - D a t e - - - - - - - - -
Seller's Initials_/__ Property Address _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Buyer's Initials__}__
THIS IS A LEGALLY BINDING AGREEMENT, IF NOT UNDERSTOOD, SEEK LEGAL ADVICE.
m
REALTOR°
PURCHASE AGREEMENT
for exclusive use by members of the
REALTORS® ASSOCIATION OF LINCOLN
EOUAL HOUSING
OPPORTUNITY
200
_ _ _ _ _ _ _ _ _ _ _ _ _(Date)
---------------------------~Lincoln,Nebraska
1.
Property. The undersigned, as Buyer, agrees to purchase the following property:
Address:---------------------------------------------~
Legal D e s c r i p t i o n : - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ (Properry)
including all fixtures and equipment permanently attached to Property. The only personal property included is as follows: - - - - - - - - -
2. Title Insurance. Buyer shall be furnished a current title insurance commitment before closing and an ALTA Homeowner's Policy of Title
Insurance or a different policy chosen by Buyer, insuring marketability, from a title insurance company chosen by Buyer. The cost of title insurance
issued for this sale shall be paid as follows: - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - · Buyer agrees that should a valid title defect exist, Seller
has a reasonable time to correct said defect, not to exceed 30 days from the date of the title commitment. If the title defects are not cured within such
time period, Buyer may declare this Agreement null and void, and the earnest money shall be refunded.
3.
Conveyance of Title and Authority of Parties.
free and clear of all liens, encumbrances,
(a) Seller agrees to convey to Buyer by warranty deed or
special assessments levied or assessed and subject to all easements and restrictions of record. Seller agrees to pay any assessments for items such as
paving, curbing, sidewalk or utilities previously constructed, now under construction, or ordered to be constructed by public authority but not yet
assessed as of the date of this Agreement. The documentary stamp tax shall be paid by Seller.
(b)The undersigned Seller(s) and Buyer(s) each represent and warrant that they are duly empowered and/or authorized, whether individually, on behalf
of any entity or as a fiduciary, to enter into this Purchase Agreement and create a valid and binding contract. And that, as to Seller, all parties required
to transfer title to the Property are parties to this contract.
4. Price and Financial Terms. Buyer agrees to pay $
, on the following terms: an earnest money deposit of
$
at this time as shown by the receipt set forth below. If paid by check, it shall be payable to the selling broker. The check will
be cashed. All monies shall be deposited in the selling broker's trust account, to be held until the time of closing. If the selling broker is not closing
the transaction, the earnest money shall be transmitted to the party closing the transaction at a time to be determined by the selling broker. The closing
agent, if not the listing broker, shall be chosen by agreement of Buyer and Seller. The balance due Seller shall be paid as shown in Paragraph(s)
#
following:
(a)
Buyer's Obligations Upon Loan or Assumption: Buyer shall negotiate a new loan or shall assume the existing mortgage or deed of trust.
Buyer agrees to sign all papers and pay all related costs, and to establish escrow reserves as required. Buyer's best efforts shall be used
to obtain the loan or approval for the assumption. If the loan or assumption is not applied for within
days from the date of
acceptance, this offer shall be null and void and the earnest money shall be forfeited. If processing of the loan or assumption has not been
completed by the lending agency by the closing date specified elsewhere in this Agreement, the time limit shall be automatically extended
until the lending agency has, in the normal course of its business, advised either approval or rejection, but if the Buyer does not have final
loan approval within 30 days after the closing date set in this contract, either party shall have the right to send a notice of termination to
Form 200, Page 1 of7
Approved 5/22/13
© Copyright Midlands MLS Inc. 2012
the other; in which case, the fmancing contingency shall be treated as having failed and Buyer shall be entitled to a refund of earnest money.
If this offer is not contingent on the sale of real estate owned by Buyer and the lender requires as a condition of granting the loan that the
real estate owned by Buyer be sold, then Seller shall have the option to declare this Agreement null and void unless further written
agreement between Buyer and Seller is obtained.
(b)
Conditional Upon New Loan: Balance shall be paid in cash, or by cashier's check at time of delivery of deed, contingent upon Buyer's
ability to obtain a loan in the amount of$
, secured by first mortgage or deed of trust. The loan is to be (describe loan):
% for a term of not less than
years. Maximum of
Type
, at a rate not to exceed
____% origination fee plus
% loan discount.
At the time ofclosing of this sale, Seller agrees to pay$
of Buyer's expenses connected with the sale or closing of the sale
of the Property which are permitted by Buyer's lender to be paid by Seller.
6.
(c)
Assume Existing Loan: Buyer agrees to assume and pay the existing mortgage or deed of trust note balance in favor of
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ in the approximate amount of$
and
pay the balance in cash, or by cashier's check at the time of delivery of deed. It is understood that the note terms provide a current interest
% per annum and payments of approximately $
per month. The payment includes
rate of
- - - - - - - - - - - - - - · Interest on the existing loan shall be prorated to date of closing. Buyer agrees to reimburse Seller
for the amount in the escrow reserve account which is to be assigned to Buyer. Seller agrees that loan and escrow reserves will be current
at time of closing. Buyer agrees to pay assumption fees, if any. Buyer D does, or D does not agree to obtain a release of liability of
Seller from Seller's loan before closing.
( d)
All Cash: Balance shall be paid in cash, or cashier's check at time of delivery of deed, no financing being required.
( e)
Seller Financing: Balance to be evidenced by
with Seller. Buyer to make an additional payment
at time of execution of the instruments, and closing. The remainder of
by cash or cashier's check of $
$
shall be paid in monthly payments of $
, or more, which monthly payments shall include interest
% per annum computed monthly on the unpaid portion of the principal. The debt shall be amortized over
at the rate of
_ _ _ _ years with a balloon payment on
(Date). All other terms and conditions ofthe instruments
shall be as mutually agreed. D Buyer's, or D Seller's attorney shall prepare the instruments with cost of preparation paid by: _ _
Addenda attached. The attached addenda are made a part of this Purchase Agreement (Please Initial) (Seller _ _/__J (Buyer _ _/__)
(List A d d e n d a ) : - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
7. Maintenance. Seller agrees to maintain the Property, including, but not limited to, the heating, air conditioning, water heater, sewer, plumbing,
electrical system, any appliances and the lawn in their present condition until date of closing, subject to the provisions of paragraph 12 of this
Agreement. Seller agrees to install and maintain smoke detectors as required by law. If the Property is in Lancaster County and has a private water
and/or wastewater system, Seller agrees, at Seller's cost, to obtain a Property Transfer Determination Letter from the Lincoln-Lancaster County Health
Department approving such systems as required by law.
8. Termite Inspection. Buyer requests a termite and wood destroying insect inspection of the Property at Buyer's expense (except should Buyer
obtain a VA loan, the expense shall be paid by Seller). Should evidence of termites or wood destroying insects be found, the Property shall be treated
at Seller's expense by a commercially licensed applicator who has met the certification requirement of the Nebraska Pesticide Act for treatment of
termites and wood destroying insects. Buyer agrees to accept the treated Property. If visible evidence of previously treated infestation which is now
inactive is found, treatment shall not be required. Should damage from such insects be found, the damage shall be corrected at Seller's expense.
However, if the cost required for repairs exceeds 1% of the purchase price, and Seller does not elect to pay the cost in excess of such amount, Buyer
shall have the option of declaring this Agreement null and void and to the return of the earnest money.
Approved 5/22/13
C Copyright Midlands MLS Jnc. 2012
9. Inspections. The following provisions shall apply to inspections of the real and personal property, with the exception of matters pertaining to
lead-based paint if this is a residential dwelling built prior to 1978 and termite inspections which are controlled by paragraph 8 of this Agreement.
(a)
Buyer, at Buyer's expense, shall have the right to perform any inspections of the real and personal property identified in this Purchase
Agreement that Buyer desires. If the condition of the real or personal property is unsatisfactory in Buyer's subjective discretion, Buyer
shall provide Seller with:
(1)
An Inspection Notice Addendum that sets out in writing any unsatisfactory physical items Buyer requests Seller to correct; or
(2)
A Rejection Notice Addendum that notifies Seller that after inspection, Buyer finds the real or personal property to be in
unsatisfactory condition (a rejection of the property).
(b)
To be effective, the Inspection Notice Addendum or Rejection Notice Addendum must be received by Seller or Seller's Authorized
Recipient no later than 5:00 p.m. C.T. on the 12th calendar day after the acceptance date ("Inspection Objection Deadline").
(c)
If an Inspection Notice Addendum or Rejection Notice Addendum is not received by Seller or Seller's Authorized Recipient by 5 :00 p.m.
C. T. on the 12th calendar day after the acceptance date ("Inspection Objection Deadline"), the real and the personal property identified
in this Purchase Agreement shall be deemed to be satisfactory to Buyer.
(d)
Ifa Rejection Notice Addendum is received by Seller or Seller's Authorized Recipient by the Inspection Objection Deadline this Purchase
Agreement shall automatically terminate.
(e)
If an Inspection Notice Addendum containing requests for action by Seller is received by Seller or Seller's Authorized Recipient by the
Inspection Objection Deadline and Buyer and Seller have not agreed in writing as to what action is to be taken regarding the items by 5 :00
p.m. C. T. on the 18th calendar day after the acceptance date of the Purchase Agreement ("Resolution Deadline"), this Agreement shall
automatically terminate on the Resolution Deadline unless, before such termination, Buyer's written notice ofwithdrawal ofthe requirement
that Seller correct the items contained in the Inspection Notice Addendum is received by Seller or Seller's Authorized Recipient.
Upon termination of this Purchase Agreement under this paragraph 9, the earnest money, less amounts necessary to pay any expenses incurred by
Realtor® or escrow agent holding the earnest money, shall be refunded to Buyer promptly, upon Buyer providing written notification of the facts
constituting termination to the party holding the earnest money, without further documentation being required.
Buyer does not, by acceptance of the real and personal property identified in this Purchase Agreement, waive, release or relinquish any right or claim
Buyer may have against Seller by reason of any misrepresentation, concealment or fraud. Buyer shall be responsible for payment of all inspections,
surveys, engineering reports or for additional work performed at Buyer's request and shall pay for any damage which occurs to the real and personal
property as a result of such activities. The provisions of this paragraph shall survive termination of the Purchase Agreement.
10. Condition of Property. This Agreement is based upon Buyer's personal inspection or investigation of Property and not upon any representation
or warranties of condition by any agent involved in this transaction. Buyer agrees to accept Property in its present condition, except as provided in
this Agreement. Seller represents that to the best of Seller's knowledge, there are no defects in the Property that (1) are not reasonably ascertainable
and which significantly affect the desirability or value of the Property, or (2) are not set forth within the Seller Property Condition Disclosure
Statement, or (3) which the Seller has not disclosed to Seller's Agent in writing. Buyer acknowledges receipt of the Seller Property Condition
Disclosure Statement dated
(Buyer should initial if applicable).
11. Home Warranty. Understanding the benefits of a home warranty, as provided by the terms of the warranty contract (Buyer to initial one ofthe
following):
__ ! __ Buyer requests that a home warranty be provided. The cost, not to exceed $_ _ _ _ _ _ _ shall be paid as follows: _ __
__ !__ Buyer declines home warranty coverage.
__ !__ Buyer understands that warranty coverage is not available for this Property.
12. Responsibility of Insurance & Risk of Loss: Seller shall insure the property for fire, wind, hail, explosion, water or any other cause
at no less than purchase price until closing. Risk ofloss or damage to Property, prior to closing, shall be the responsibility of Seller. If, prior
to closing, the structure on the Property is materially damaged; Seller shall immediately notify the Buyer in writing of the damage. Buyer,
at Buyer's choice, may: 1) Rescind this agreement OR 2) Take the property subject to the damage with the Seller paying to the Buyer the
insurance proceeds and deductible for the restoration of the property or at a price discounted by the cost of restoration of the premises.
13. Real Estate Taxes, Prorations. Taxes for prior year shall be paid by Seller. Current year taxes together with interest, rents and homeowners
association dues, if any, shall be prorated to the date of possession. Taxes shall be prorated on the basis of the most recent assessed valuation and
the most recent tax levy available from the appropriate governing body at the time of closing. The most recent assessed valuation shall be the prior
year's valuation until a new valuation, including a preliminary valuation, is published by the county assessor.
Approved 5/22/13
14. Possession and Closing. Closing of the sale shall be on
(Closing Date), or within _ _ _ days after loan
approval, whichever last occurs, unless the contract is terminated under paragraph 4(a). Possession of Property shall be given on
_ _ _ _ _ _ _ _ _ _ _ _ _ _(Date) but not before closing. This Agreement shall in no manner be construed to convey Property or to give
any right of possession. Buyer shall have the right to make a final inspection of Property prior to closing to ascertain that all conditions of this
Agreement have been met.
15. Escrow Closing. Buyer and Seller agree that the closing of the sale may be handled by an escrow agent. If so, any broker holding the earnest
money or other trust funds is authorized to transfer such items to the escrow agent. All documents and other items received by any broker in
connection with the sale shall also be transferred to the escrow agent. After the transfer, a broker shall have no further responsibility or liability to
Buyer or Seller to account for funds or preparation of documents in connection with the closing of the sale. Escrow agent will not be required to
disburse funds or deliver or record any documents until it has received certified funds or other good, sufficient and collected funds, and all conditions,
Closing charges shall be paid as follows:
terms and provisions of this Agreement have been satisfied, performed and met.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - · IfBuyer's loan is a government-regulated loan which prohibits Buyer
from paying such charges, they shall be paid by Seller.
16. Compensation. Buyer agrees to pay selling broker compensation of$
at closing. The compensation will be collected
in all cases except (a) if Buyer secures a loan to purchase the Property that does not allow Buyer to pay such compensation or (b) buyer has previously
agreed to pay selling broker fixed compensation pursuant to and as defined in the provisions of paragraph 3 of the Realtors® Association of Lincoln's
Exclusive Buyer Agency Agreement entered into with selling broker. If this compensation is paid by Buyer to selling broker, Seller and Buyer agree
that selling broker, which may be the same as the listing broker, may collect compensation from both Seller and Buyer.
17. Do Not Call Provision. Seller and Buyer authorize telephone, facsimile and other electronic means of contact by individuals on behalf of the
Listing Company and the selling company, if different, as well as other service providers involved in the transaction.
18. Default. IfBuyer fails to consummate this purchase according to the terms of this Agreement, Seller may, at Seller's option, retain the earnest
money as liquidated damages for such failure, or utilize such other legal remedies as are available to Seller by reason of such failure. In the case
of a dispute over the return or forfeiture of earnest money, the holder of the earnest money may require the agreement of Seller and Buyer to release
the funds.
19. Notices. Any notice required to be given to a party to this Purchase Agreement by the terms of this Purchase Agreement or any of its addendurns,
shall not be complete until received and shall be considered to have been received when the notice has been delivered as set forth in this paragraph.
A notice shall be considered for all purposes to have been delivered to the party required to be given notice when the written notice is delivered to
the party, the party's agent, the broker of the party's agent, or any real estate licensee associated with the office of the party's agent ("Authorized
Recipient"). Fax delivery may be shown by written acknowledgment from an authorized recipient that a notice was received prior to the deadline for
giving the notice. E-mail delivery is complete if the Authorized Recipient affirmatively acknowledges the e-mail was received before the deadline
for receiving a notice.
20. Transmittal Authorization. The undersigned agree that all documents bearing signatures, initials or other marks of acknowledgment by a Buyer,
Seller and/or Broker/agent relating to the real estate transaction contemplated under this Agreement, including offers, counteroffers and acceptances: (1)
may be transmitted electronically, and/or may use digital signature technology which is compliant with state UETA and/or federal E-SIGN requirements
and (2) that digital signatures as well as electronic copies of manual signatures, whether scanned, digital photograph, facsimile or other means of image
reproduction shall be treated in all respects as originals, and (3) that, if requested, the undersigned will submit an original, or copy thereof, to their agents.
This Agreement and any addendums or modifications may be signed in counterparts and such counterparts shall by considered as one document.
21. Acceptance Date. This offer is null and void if not accepted by Seller on or b e f o r e - - - - - - - - - - - - - - - (Date) at
_ _ _ _ _ o'clock _m. Buyer acknowledges receipt of a copy of this Agreement, which has not yet been signed by Seller.
22. Mediation and Arbitration
(a)
Disputes. The term "Dispute" shall include, without limitation, any controversy, complaint, dispute, claim or disagreement relating to or
arising out of the brokerage relationship or the construction, interpretation, enforcement, or breach of the terms of this Agreement.
(b)
Mediation. In the event of any Dispute, any party to the Dispute may seek non-binding mediation in an attempt to resolve the Dispute by
giving 15 days written notice of a request for such mediation to all other parties to the Dispute. The request for mediation must be made within
360 days after the party making the request knew, or exercising reasonable diligence and care, should have known, of the Dispute. In no case
shall such request be made after the statute of limitations on a civil suit based on the Dispute would have run. Such mediation shall be held
in Lincoln, Nebraska. Such mediation may be administered by the American Arbitration Association and shall be conducted according to the
American Arbitration Association's Commercial Rules-Real Estate Industry Arbitration Rules (Including a Mediation Alternative) or such
other mediation service versed in real estate practices of the locality.
(c)
Arbitration. Any Dispute that is not resolved by informal settlement or mediation shall be resolved exclusively by binding arbitration. Such
arbitration shall be held in Lincoln, Nebraska. Such arbitration shall be administered by the American Arbitration Association and shall be
conducted according to the American Arbitration Association's Commercial Rules-Real Estate Industry Arbitration Rules (Including a
Mediation Alternative). The arbiter(s) shall apply Nebraska substantive and procedural law to the arbitration proceeding. Arbitration shall
be commenced by written demand made by any one or more of the parties to the Dispute given to all other parties to the Dispute. The demand
Approved 5/22/13
©Copyright Midlands MLS Inc. 2012
Date:
Seller's Initial
for arbitration must be in writing and must be given by personal delivery or certified mail, return receipt requested, within 360 days after the
party making the demand knew, or exercising reasonable diligence and care, should have known, ofthe Dispute. Notwithstanding the previous
sentence, in the case that the parties unsuccessfully attempt mediation to resolve a Dispute, the demand for arbitration shall be made within
60 days of the final mediation session. However, in no case shall such demand be made after the statute of limitations on a civil suit based
on the Dispute would have run. The prevailing party shall be entitled to costs and fees of the arbitration and, in the discretion of the arbitrator
who shall take into account the relative merits of the opponent's case, the arbiter may award attorneys fees to the prevailing party.
(d)
Provisional Remedies. The filing of a judicial action to enable the reporting of a notice of pending action, for order of attachment,
receivership, injunction, or other like provisional remedies, shall not constitute a waiver of mediation or arbitration under this provision, nor
shall it constitute a breach of the duty to arbitrate.
(e)
Exclusions. The terms of this paragraph 22 shall not apply to:
(t)
(1)
Any complaint of violation of the Code of Ethics of the National Association of REALTORS®;
(2)
Foreclosure or other action or proceeding to enforce a deed of trust, mortgage or land contract; or
(3)
The filing or enforcement of a construction or similar lien.
(4)
An action filed and held in "Small Claims Court" as defined in Neb. Rev. Stat. §25-2801 to §25-2804, provided, however,
any attempt to transfer a matter filed in small claims court to county court shall be subject to paragraph 22.
Waiver. BYSIGNINGTHISPURCHASEAGREEMENT, THEPARTIESAGREETHATEVERYDISPUTEDESCRIBEDABOVETHAT
IS NOT RESOLVED BYINFORMALSETTLEMENTORMEDIATIONWILLBE DECIDED EXCLUSIVELY BY ARBITRATION AND
THAT ANY ARBITRATION DECISION WILL BE FINAL AND BINDING. THE PARTIES AGREE THAT THEY WILL RECEIVE ALL
THE RIGHTS AND BENEFITS OF ARBITRATION, BUT ARE GIVING UP RIGHTS THEY MIGHT HAVE TO LffiGATE THOSE
CLAIMS AND DISPUTES IN A COURT OR JURY TRIAL, OR TOPARTICIPATE AS A REPRESENTATIVE OR MEMBER OF ANY
CLASS OF CLAIMANTS IN CONNECTION WITH ANY SUCH DISPUTES. NO PARTY TO THIS AGREEMENT, WHETHER
REALTOR® OR SELLER, SHALL BE ENTITLED TO JOIN OR CONSOLIDATE DISPUTES BY OR AGAINST OTHERS IN ANY
ARBITRATION, OR TO INCLUDE IN ANY ARBITRATION ANY DISPUTE AS A REPRESENTATIVE OR MEMBER OF A CLASS,
OR TO ACT IN ANY ARBITRATION IN THE INTEREST OF THE GENERAL PUBLIC ORIN ANYPRIVATE ATTORNEY GENERAL
CAPACITY.
TIDS CONTRACT CONTAINS AN ARBITRATION PROVISION WHICH MAY BE ENFORCED BY THE PARTIES
Buyer's Printed Name
Buyer's Signature
Date
Buyer's Printed Name
Buyer's Signature
Date
Buyer's Current Street Address
City
Selling Agent's Printed Name
Selling Company
Listing Agent's Printed Name
Listing Company
State
Zip
Buyer's Phone
Selling Agent's Phone
RECEIPT FOR EARNEST MONEY
to apply to the purchase price of Property on terms and conditions as stated. If this offer is not accepted by the Seller within the time specified, or
if there are any defects in the title which cannot be cured as specified above, the Deposit shall be refunded.
Form 200, Page 5 of 7
Approved 5/22/13
()Copyright Midlands MLS Inc. 2012
Date:
S..,ller's Initials
Date:
Buver' s Initials
Complete only one of A or B below:
ACCEPTANCE OF ALL TERMS
A:
Seller accepts all of the terms of the above agreement and agrees to perform all of its terms.
THIS CONTRACT CONTAINS AN ARIBTRATION PROVISION WHICH MAY BE ENFORCED BY THE PARTIES
Seller _ _ _~-------------------- D a t e - - - - - - - - - - - - - - - - - - - - Seller _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ D a t e - - - - - - - - - - - - - - - - - - - - Phone _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ Fax _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
COUNTER OFFER BY SELLER
B:
In response to the above Purchase Agreement dated
for the sale of the Property, all of the terms and conditions
of the Purchase Agreement are accepted and shall remain the same with the exception of the following:
(Date), at
(hour) and be automatically null and void unless, prior
This Counter Offer shall expire
to the time of expiration, Buyer's written acceptance is delivered to Seller or Seller's Authorized Recipient.
If this Counter Offer is so delivered, the Purchase Agreement as amended by this Counter Offer shall become a contract between the parties.
Seller reserves the right to withdraw this Counter Offer prior to acceptance. Withdrawal shall be complete if verbal notification of withdrawal is
made to Buyer or Buyer's Authorized Recipient before the delivery of Buyer's written acceptance to Seller or Seller's Authorized Recipient.
THIS CONTRACT CONTAINS AN ARBITRATION PROVISION WHICH MAY BE ENFORCED BY THE PARTIES
Seller
Date
Date
Seller
The foregoing Counter Offer is accepted _ _ _ _ _ _ _ _ _ _ _ _ (Date), at _ _ _ _ _ _ _ (hour).
Buyer
Approved 5/22/13
©Copyright Midlands MLS Inc. 2012
Buyer
Date:
s 11
, s Initial
IB
THIS IS A LEGALLY BINDING AGREEMENT, IF NOT UNDERSTOOD, SEEK LEGAL ADVICE
ADDENDUM TO PURCHASE AGREEMENT
INSPECTION NOTICE
REALTOR"
Addendum#
EOUALHOUSING
OPPORTUNITY
217
for the sale of:
Buyer named in a certain Purchase Agreement dated - - - - - - - Address: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ (Property)
-------------
Legal D e s c r i p t i o n : - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - gives Seller notice as follows:
BUYER'S INSPECTION NOTICE - NO ACTION REQUIRED OF SELLER: (To be delivered to Seller or Seller's Authorized
Recipient by the Inspection Objection Deadline.) (Initial one)
_ _ No inspections are required by Buyer.
After inspection, Buyer does not require Seller to take any action.
This Buyer's Inspection Notice shall not modify the provisions of Paragraph 8 of the Purchase Agreement in any manner.
Buyer
Date/Time
Buyer
Date/Time
Acknowledgment of Seller: Seller or Seller's Authorized Recipient acknowledges receipt of Buyer's Inspection Notice at
m.
on
, 20_ by (initial one) _ _ facsimile; _ _ e-mail; or _ _ hard copy.
Seller or Seller's Authorized Recipient
FORM IS COMPLETE IF SIGNED BY BUYER AND SELLER OR AUTHORIZED RECIPIENT ABOVE
BUYER'S INSPECTION NOTICE - WITH ACTION REQUESTED OF SELLER: (To be delivered to Seller or Seller's Authorized
Recipient by the Inspection Objection Deadline set forth in the Purchase Agreement or Property is deemed satisfactory to Buyer.)
Buyer, after inspection of the real and personal property identified in the Purchase Agreement, finds certain conditions cifthe real
and personal property to be unsatisfactory and requests that Seller take the following actions: - - - - - - - - - - - - - - -
Buyer
Date/Time
Buyer
Date/Time
Acknowledgment of Seller: Seller or Seller's Authorized Recipient acknowledges receipt of Buyer's Inspection Notice at ____ m.
on
, 20_ by (initial one) _ _ facsimile; _ _ e-mail; or _ _ hard copy.
SELLER'S RESPONSE TO BUYER -ACCEPTANCE: (To be delivered to Buyer or Buyer's Authorized Recipient by the Resolution
Deadline or the Purchase Agreement automatically terminates.) (Initial)
_ _ Seller responds to Buyer's Inspection Notice by accepting Buyer's requests.
Seller
Date/Time
Date/Time
Seller
Acknowledgment of Buyer: Buyer or Buyer's Authorized Recipient acknowledges receipt of Seller's Response at _ _ _ m. on
- - - - - - - - - ' 20_ by (initial one) _ _ facsimile; _ _ e-mail; or _ _ hard copy.
Buyer or Buyer's Authorized Recipient
FORM IS COMPLETE IF SIGNED BY SELLER AND BUYER OR AUTHORIZED RECIPIENT ABOVE
Form217,Page 1 of _ _
(Approved 5/30/07)
INSPECTION NOTICE CONTINUATION
Addendum#
217
SELLER'S RESPONSE TO BUYER - OTHER: (To be delivered to Buyer or Buyer's Authorized Recipient by the Resolution Deadline
or the Purchase Agreement automatically terminates) (Initial one)
Counters the Buyer's requests as follows:
_ _ _ Rejects the Buyer's requests.
Seller
Date/Time
Seller
Date/Time
Acknowledgment of Buyer: Buyer or Buyer's Authorized Recipient acknowledges receipt of Seller's Response at _ _ _ m. on
- - - - - - - ' 20 __ by (initial one) _ _ facsimile; _ _ e-mail; or _ _ hard copy.
FORM IS COMPLETE IF SELLER REJECTED AND BUYER IS NOT WITHDRAWING INSPECTION REQUEST
BUYER'S RESPONSE TO SELLER: (To be delivered to Seller or Seller's Authorized Recipient by the Resolution Deadline.)
Buyer responds to Seller as follows: (Initial one)
Buyer accepts Seller's Counter. This transaction shall now move forward to closing.
Buyer withdraws Buyer's request set forth above that Seller take certain action as set forth above, and does not require
Seller to take any further action. This transaction shall now move forward to closing.
Buyer rejects Seller's Counter. Purchase Agreement will become void on the Resolution Deadline unless, prior thereto,
written resolution occurs or Buyer withdraws request for Seller action.
Buyer
Date/Time
Buyer
Date/Time
Acknowledgment of Seller: Seller or Seller's Authorized Recipient acknowledges receipt of Buyer's Response at _ _ _ m. on
- - - - - - - - - ' 20_ by (initial one) _ _ facsimile; _ _ e-mail; or ___ hard copy.
(Approved 5/30/07)
ACKNOWLEDGMENT
) SS.
The foregoing Acceptance of All Terms or Counter Offer, whichever
was signed by the Seller, was acknowledged before me on
_ _ _ _ _ _ _ _ _ _ ___,by_ _ _ _ _ _ _ _
~
The foregoing Acceptance of All Terms or Counter Offer, whichever
was signed by the Seller, was acknowledged before me on
_ _ _ _ _ _ _ _ _ _ _ _ _ _,by_ _ _ _ _ _ __
Notary Public
Notary Public
Commission e x p i r e s - - - - - - - - - - - - - - -
Commission e x p i r e s - - - - - - - - - - - - - - -
(seal)
(seal)
RECEIPTS FOR FULLY EXECUTED PURCHASE AGREEMENT
Buyer acknowledges receipt of executed copy of this agreement.
Buyer_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Date _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Buyer_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Date
-------------------
Seller acknowledges receipt of executed copy of this agreement.
Seller_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Seller_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Approved 5/22/13
IC Copyright Midlands MLS Inc. 2012
Date
------------------~
Date------------------~
OMAHA AREA BOARD OF REALTORS®
UNIFORM PURCHASE AGREEMENT
IB
RE ALTO Re
(5)
(This is a legally binding contract. If not Wlderstood, seek legal advice.)
EQUAL HOUSING
OPPORTUNITY
The REALTOR® negotiating this agreement is a member of the Omaha Area Board of REALTORS® and as such is governed by its Code of
Ethics and Rules of Fair Business Practice.
The undersigned Purchaser, (whether one or more) agrees to purchase the Property described as follows:
1.
Property Address: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _Zip Code _ _ _ _ _ __
Legal Description (Property):
2.
as surveyed, platted and recorded i n - - - - - - - - - - County, NE, including all fixtures and equipment permanently attached to
the Property.
Personal Property: The only personal property included is as follows: Orange Ooven Drefrigerator Omicrowave
3.
0dishwasher Dall window coverings Dall ceiling fans Owasher 0dryer Ogarage door opener(s) with
remotes Doutdoor play
equipment Dstorage shed Owork bench and/or shelving located in
other (list in space)
together with
any other property which is permanently afftxed to the Property.
4.
Conveyance: Provided that the Seller (whether one or more) has good, valid and marketable title, in fee simple, Seller agrees to
convey title to Property to Purchaser or his nominee by form of warranty deed or
free and clear of all liens,
encumbrances or special taxes levied or assessed, Ono exceptions Oexcept
and subject to all
building and use restrictions, utility easements abutting the boundary of the Property, and protective covenants now ofrecord.
5.
Assessments: Seller agrees to pay any assessments for paving, curb, sidewalk or utilities previously constructed, now under
construction, or ordered or required to be constructed by any public authority, but not yet assessed. Upon notification, Seller agrees to notify
Purchaser of any additional assessments ordered but not yet assessed.
6.
Consideration: Purchaser agrees to pay to Seller, via certified funds, the total purchase price in the amount of
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _DOLLARS($
on
the following terms: $
(Deposit) deposited herewith as evidenced by the receipt attached below.
Deposit is made payable and delivered to 0Escrow Agent 0Broker 0Seller. If the Deposit is paid by check, it will be cashed following
acceptance of this Agreement or as otherwise agreed herein. In the event this offer is not accepted by the Seller of the Property within the
time specified, the Deposit shall be returned to Purchaser. In the event there are any defects in the title which cannot be cured as specified
below, the Deposit shall be paid to Purchaser. In the event of wrongful refusal or failure of the Purchaser to consummate the purchase, the
Seller may, at his option, retain the Deposit for failure to carry out the terms of this Purchase Agreement, subject to the terms of the listing
agreement. In the event of a dispute over the return or release of the Deposit, Purchaser(s) and Seller(s) understand that the Broker or Escrow
Agent will not release funds to either party without the signed written consent of Seller(s) and Purchaser(s) or a court order or arbitration
ruling. Broker shall pay any Deposit into court which it may have in its possession upon the filing of such legal action. Such legal action shall
not be maintained against Broker when the dispute is between Purchaser and Seller. Any party naming Broker as a party to any proceeding
despite the aforementioned sentences shall be liable to Broker for all legal costs and fees.
7.
D All Cash: Balance of$ - - - - - - - - - - - - - - - - shall be paid in wire transferred funds, or certified or
cashier's check at time of delivery of deed, no financing being required.
8.
D Conditional Upon Financing: This Agreement shall be conditional upon Purchaser obtaining financing, under the terms set
forth below:
8.1
Terms of Financing. Balance of $
shall be paid in wire transferred funds,
or by certified or cashier's check at time of delivery of deed, conditioned upon Purchaser's ability to obtain financing to be secured by first
mortgage or deed of trust, on above described Property in the amount of$
The financing will be
OVA, 0FHA, 0CONVENTIONAL, 0CONVENTIONAL with P.M.I., 0NIFA, 0USDA or D
·------------~
with terms providing initial monthly principal and interest payment of not more than $
plus taxes and
insurance, and for an initial interest rate not exceeding
% per annum, plus mortgage insurance. The note will be for a period of not
less than
years. Loan origination/service fee to be paid by Purchaser except as otherwise agreed herein.
Cl 2015 Omaha Area Board ofREALTORS®, Inc.
Page 1 oflO
1120/2015
Form 200
Purchaser(s) Initials:
Seller(s) Initials:
Purchase Agreement - Cont.
' '
8.2
Purchaser Loan Application Requirements: Purchaser agrees to make application for financing within five (5) business
days of acceptance of this offer to:
D
D
Company Name
Loan Officer Name
Phone Number
Company Name
Loan Officer Name
Phone Number
to sign all papers and pay all costs in connection therewith, and to establish escrow reserves as required. If the financing is not approved
within _ _ days from date of acceptance, this offer shall be null and void, and the Deposit will be paid to Purchaser with no further
agreement or release required, except that, if processing of the application for financing has not been completed by the lending agency within
the above time, such time limit shall be automatically extended until the lending agency has, in the normal course of its business, advised
either approval or denial. If the original loan application is denied, the Purchaser authorizes and instructs the Lender to notify the Purchaser,
the Seller and all real estate licensees involved in the transaction, in writing. Upon notification of denial, this Purchase Agreement shall be
void and the Deposit will be paid to Purchaser, with no further agreement or release required, unless Seller and Purchaser mutually agree in
writing within five (5) business days from receipt of notification of loan denial that an additional loan application will be made or that, without
waiving such contingency, additional loan information will be submitted to the original Lender or Purchaser waives the financing condition.
Notwithstanding the foregoing, if approval or denial is not issued within ten (10) days after the approximate closing date, below, this
Agreement shall be voidable by Seller upon written notice to Purchaser.
9.
10.
D A. Seller Financing: - See attached addendum
D B. Loan Assumption: - See attached addendum.
ADDITIONAL PROVISIONS: (Check all that apply):
D A. Contingent Upon Sale and Closing: This offer is contingent upon the sale and closing of Purchaser's property located at:
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ -See attached addendum.
D B. Contingent Upon Closing: This offer is contingent upon Purchaser first obtaining the proceeds from the closing of the Purchaser's
property located at
scheduled to close on
approximately
. If such closing does not occur within ten (10) business days after the
approximate closing date, below, this offer shall be voidable by Seller upon written notice to Purchaser.
DC. Other Provisions (ifattaching addenda, list in Section 37):
11.
Taxes: If the Property is located in Douglas or Sarpy County, all consolidated real estate taxes which become delinquent in the
year in which closing takes place shall be treated as though all are Current Taxes for the purposes of this Agreement. If the Property is located
in any other county, all consolidated real estate taxes for the year in which closing takes place (based on assessed value and tax rate as of the
date of this Agreement) shall be treated as Current Taxes for the purposes ofthis Agreement. Such Current Taxes shall be prorated as of date
of Opossession or Oclosing.
12.
Rents, Deposits and Leases, If Rented: All leases and rents shall be current and not in default at closing. Any tenant deposits and
leases shall be assigned to Purchaser at no cost. All rents shall be prorated to date of closing. Copies of all current leases shall be provided to
the Purchaser within ten (10) days of acceptance of this Agreement. In the event that any condition of an existing lease is unacceptable to
Purchaser, Purchaser may terminate this Agreement by written notice to Seller within ten (10) days of Purchaser's receipt of the copies of
leases, and Purchaser shall be entitled to be paid the Deposit with no further agreement or release required.
Sanitary and Improvement District (S.I.D.): Purchaser understands that this property is located within S.I.D. # _ _ _ _ _.If
13.
the Property is located within an SID, Purchaser acknowledges receipt of the most recently filed S.I.D. Statement.
© 2015 Omaha Area Board of REALTORS®, Inc.
Page 2 oflO
1/20/2015
Form 200
Seller(s) Initials:
14.
Conveyance of Title: Seller shall through Seller's Agent or closing agent furnish a current title insurance commitment or complete
abstract of title to Purchaser as soon as practical. If title defects are found, Seller must cure them within a reasonable time. Notwithstanding
the foregoing, if title defects are not cured within fourteen (14) days after the approximate closing date, below, this Agreement shall be
voidable by Seller upon written notice to Purchaser.
Approximate closing date to be --------------------~ 20
orD _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _,,20----Jat ___ o'clock
____J
and possession date shall be
D closing,
M.
The Real Estate Settlement Procedures Act ("RESPA") and its accompanying regulations make it clear that if the Purchaser pays any part of
the title insurance policy, the Seller cannot make the sale conditioned on the use of a particular title insurance company. According to the
Purchasers rights under RESPA, Purchaser hereby directs the title insurance work to D --------------~
orD
--------------
Purchaser hereby selects the expanded AL TA Homeowners Policy of Title or D
--------------------
The cost of any title insurance policies and endorsements shall be equally divided between Purchaser and Seller.
15.
Escrow Closing: Purchaser and Seller acknowledge and understand that the closing of the sale may be handled by an Escrow Agent
and that the Broker is authorized to transfer the Deposit or any other funds it receives to said Escrow Agent. After said transfer, Broker shall
have no :further responsibility or liability to Purchaser or Seller for the accounting for said funds. Escrow Agent's or the Broker's charge for
the escrow closing shall be equally divided between Purchaser and Seller unless Purchaser is obtaining a VA loan, in which case escrow costs
of the closing shall be paid by Seller. Escrow Agent shall be D
or
D
. If no Escrow Agent is selected, the title insurance agent, above, shall be the Escrow Agent. At
closing Purchaser is required to have wire transferred funds or certified or cashier's check for the balance of amounts due.
16.
Utilities: Purchaser agrees to have all utilities transferred from Seller's name to Purchaser(s) name, as of the date of closing or
possession, whichever is earlier.
17.
Homeowners Association and Protective Covenants: Purchaser acknowledges that the Property may be subject to protective
covenants that govern Purchaser's use of the Property, and that may be enforced by the homeowner's association or its members. Purchaser
can obtain a copy of the protective covenants from the designated title insurance company. Seller shall pay all homeowner's and
neighborhood association assessments levied and due as of closing. Homeowner's or neighborhood association dues shall be prorated to the
date of closing. Purchaser shall be responsible for all future homeowner's or neighborhood association dues, if any.
18.
State Documentary Tax: The State Documentary Tax on the deed shall be paid by the Seller.
19.
Affiliated Business Arrangements: Purchaser and Seller acknowledge and understand that real estate licensees involved in this
transaction may receive financial remuneration from the sale of title insurance or other forms of insurance or service as defined in the attached
Affiliated Business Arrangement Disclosure. Purchaser and Seller acknowledge receipt of the Affiliated Business Arrangement Disclosure
provided herewith.
20.
Release of Information: Purchaser and Seller authorize the release by Broker and/or its agents of information including price,
financing and Property information regarding the purchase of this Property to the Great Plains Multiple Listing Service of the Omaha Area
Board of REALTORS® Inc., its participants and government entities. Purchaser authorizes selling agent/broker to market the fact of the sale
of this Property and related information including, but not limited to, the purchase price.
21.
Survey: Purchaser is aware of the availability of having a survey to determine the property limits, measurements, building locations,
encroachments from adjoining lands, and registered Easements which may affect the property. Purchaser agrees to pay for (select one):
D
D
Improvement Location Survey I Plot Plan (minimum survey; or relied upon for establishment of structure or other improvements),
Boundary and Improvement Location Survey (corners located/verified; improvements located; parcel checked for encroachments, may be
used for construction with regard to local, state and federal regulations),
D ALTA (American Land Title Association) Survey (most comprehensive survey, covers all aspects of above survey options and identifies
any additional evidence of possession or use which could be adverse to Purchaser),
D Waived unless required by a lender
In most situations, even if a survey is not required, one of the surveys is recommended.
IC 2015 Omaha Area Board of REALTORS®, Inc.
Page 3 oflO
112012015 Form 200
Seller( s) Initials:
22.
Seller Property Condition Disclosure: Purchaser acknowledges receipt of Seller Property Condition Disclosure Statement.
23.
Home Warranty Acknowledgment: Purchaser has been advised of the availability of Home Warranty.
D Purchaser shall receive a home warranty, provided at the expense of D Purchaser D Seller.
D
,mD
Home Warranty provider shall be
--------------~
Purchaser selects the warranty type
D Non-Evaluated Warranty D Evaluated Warranty with No Exclusions*.
Cost is$- - - - - - -
*(Seller is responsible to ensure issuance of warranty with no exclusions under this option.)
D Home warranty coverage rejected by Purchaser.
24.
Property Inspections (Select as noted): Purchaser has been advised of the availability of property inspections. Unsatisfactory Home
Condition, Asbestos, Mold, Lead and other contaminants may exist in the Property of which the Broker or Agent is unaware. Suspected
Contaminants and home condition may be identified with a typical air quality or home inspection(s). Broker recommends Purchaser obtain
inspection(s) of Purchaser's choice to better determine the presence of contaminants and home condition.
D
Purchaser identifies the following inspections, as selected, which may be ordered:
D Whole House Inspection*or components or subsystems
D Structural
0Mold
0 Septic System
Owen
0 Lead Based Paint
0Radon
Other
0
--------------------~
*''Whole house" inspections often include, but are not necessarily limited to, structure, exterior, roofing, plumbing, electrical, heating, central
air conditioning, interior, insulation and ventilation. In some instances it may be advisable to consult a structural engineer as part of the
inspections to the Property. Occasionally, whole house inspectors may use or recommend other inspectors in the course of a whole house
inspection and they will be considered as part of the whole house inspection for notification purposes.
D
Purchaser elects NOT to obtain property inspections.
If Purchaser has elected to obtain property inspections. then the following provisions shall apply:
Within seven (7) days (or
after the final acceptance of this Purchase Agreement, Purchaser, at Purchaser's
expense, shall have the right to have a "qualified" inspector or inspectors perform any and all inspections of the real property as identified
above, to determine whether the Property is satisfactory to Purchaser. To be "qualified" an inspector must be licensed, if required, in the state,
county or city in which the Property is located. In any case, the inspections performed with regard to the Property under this Agreement must
be in the ordinary course of the inspector's business. The inspection report may or may not cover items required by the appraisal. Seller will
allow inspectors reasonable access to the property within the specified timeframe.
If Purchaser chooses to have a radon inspection, and the results of the Radon test show average radon levels of 4 picocuries per liter
(pCi/L) or higher, Seller will have a licensed radon mitigation company professionally install a mitigation system and will either provide afterinstallation test results of below 4. 0 picocuries per liter of radon, or a guarantee from the radon mitigation company that the level of radon will
be below 4.0 picocuries, with a transfer of the warranty to Purchaser. A copy of the paid receipt and either test results or guarantee will be
provided to Purchaser prior to closing. Should Seller successfully complete mitigation under this Paragraph, Purchaser agrees to accept the
Property in its mitigated condition.
Purchaser's Response to Inspection Reports: Within forty-eight hours (or
of Purchaser's receipt of all requested
inspection reports, the Purchaser shall notify Seller of Purchaser's requested course of action, which may be delineated on a property
inspection resolution addendum and Purchaser shall also provide Seller with relevant pages of the inspection report(s). Purchaser's course of
action shall be set forth as one of the three following options:
© 2015 Omaha Area Board of REALTORS®
Page 4 oflO
1/20/2015 Form 200
Purchaser( s) Initials:
Seller(s) Initials:
' Purchase Agreement - Cont.
Option "A" - After receipt of Inspections, the Purchaser(s) may choose not to request any action of Seller
and to waive further objection regarding the home inspection findings.
Option "B" - If the report(s) reveal(s) any condition, issue or defect that is unsatisfactory to Purchaser, the
Purchaser may deliver a written request for repair and or remediation, as required, to the Seller. Such
request shall include a copy of the relevant inspection report or summary from the qualified inspector.
Option "C" - If the condition of the Property, as shown in any inspection or report, is unsatisfactory to
Purchaser(s), then the Purchaser may terminate the Purchase Agreement with written notice to the Seller, at
which time Purchaser shall be paid the Deposit with no further agreement or release required. Upon
Seller's request, Purchaser agrees to provide a copy of the relevant inspection report or summary from the
qualified inspector.
Purchaser's failure to deliver the report and written notification or request within the specified time period will result in Purchaser's
acceptance of the Property "as is" and Purchaser shall be deemed to have waived any objection based on Property inspections under this
section.
Seller's Response to Inspection Notice: Within forty-eight (48) hours (or
of receipt of a property inspection removal
addendum, Seller shall notify Purchaser, in writing of what steps, if any, the Seller will take to correct any identified condition, issue or defect
before closing. The failure of Seller to deliver a response before the expiration of this time period shall be treated as a notification that Seller
will not make any repairs.
If the Seller is unwilling or unable to remedy the identified conditions, issues or defects to the Purchaser's reasonable satisfaction, the
Purchaser may elect to give written notice that Purchaser accepts the Property without any repairs or remediation to be done by Seller. If
Purchaser does not elect to take the Property "As Is" within forty-eight (48) hours of the Seller' response (or the deadline for response, if no
response was timely provided), the Purchase Agreement shall be automatically null and void, at which time Purchaser shall be paid the
Deposit with no further agreement or release required.
25.
Purchaser's Personal Inspection: This offer is based upon Purchaser's personal inspection or investigation of the property and not
upon any representation or warranties of condition by Seller or any limited agents involved in this transaction. If finished sq.ft.. age. location
of property lines. lot size. condition of improvements. protective covenants. desiwzated school or school district. or other specific
requirements are important to Purchaser's decision to purchase. Purchaser acknowledges the limited agents have advised Purchaser to
make or procure independent investigations.
26.
Condition of Property: Seller represents to the best of Seller's knowledge, information and belief, there are no material, latent
defects in the Property nor any conditions present or existing with respect to the Property which may give rise to or create Environmental
Hazards or Liabilities and there are no enforcement actions pending or threatened with respect to the Property or any conditions present on it,
except as have been disclosed in writing to Purchaser. Seller agrees to maintain the landscaping, sprinkler system, heating, air conditioning,
water heater, sewer, plumbing, electrical systems and any built-in appliances in functional and operable condition until delivery of possession,
unless otherwise noted in the Seller Property Condition Disclosure Statement or specified herein. Seller will allow Purchaser to walk through
Property within
hours before closing to confirm compliance with this Purchase Agreement.
27.
Wood Infestation: Purchaser (Seller, in the case of a new VA loan) agrees to pay the cost of a wood destroying insect inspection of
the Property, and Seller agrees to pay for any treatment or repair work found necessary for issuance of a wood destroying insects warranty.
Purchaser agrees to designate the inspector for such inspection in writing to Seller's Agent within ten (10) days after acceptance of this offer.
Purchaser agrees to accept the treated Property upon completion ofrepairs. Provided, however, if treatment and repairs exceed 02% or
D
of the purchase price, this Purchase Agreement may be cancelled by Seller and/or Purchaser, by written notice
delivered to the other party within five (5) days of receipt of a wood destroying insect inspection report, which inspection report must be
delivered to the Seller and Purchaser within ten (10) days after acceptance of this Purchase Agreement, at which time Purchaser shall be paid
the Deposit with no further agreement or release required. Termite inspection work is to be performed by D - - - - - - - - - - or D ----------------~·
28.
Insurance: Seller shall insure the property for fire, wind, hail, explosion, water or any other cause at no less than replacement cost
until closing. Risk of loss or damage to Property, prior to closing, shall be the responsibility of Seller. If, prior to closing, the structure on the
Property is materially damaged; Seller shall immediately notify the Purchaser in writing of the damage. Purchaser, at Purchaser's choice, may:
1) rescind this Agreement, at which time Purchaser shall be paid the Deposit with no further agreement or release required; or 2) take the
Property subject to the damage, with the Seller paying to the Purchaser the insurance proceeds and deductible for the replacement of the
Property or at a price discounted by the cost of restoration of the Property. Purchaser agrees to insure the Property at closing.
iCI 2015 Omaha Area Board of REALTORS®
Page S of IO
1/20/2015 Form200
Seller(s) Initials:
29.
Smoke Detector: Seller agrees to install, at Seller's expense, smoke detectors as required by law.
30.
Compensation of Selling Broker: Purchaser shall pay Selling Broker compensation of $
at closing. The
compensation will be collected in all cases except if Purchaser secures a loan that does not allow Purchaser to pay for such compensation. If
this compensation is paid by Purchaser to Selling Broker, Seller and Purchaser agree that Selling Broker, which may be the same as the
Listing Broker, or any cooperating broker may collect compensation from both Seller and Purchaser.
Lead-Based Paint Addendum: Was property built before 1978? 0Yes 0No. If yes, Purchaser and Seller must complete
Disclosure oflnforrnation on Lead-Based Paint and/or Lead-Based Paint Hazards.
31.
32.
Equal Opportunity: It is unlawful to discriminate against any person in the terms, conditions or privileges of sale, purchase or lease
of a dwelling or in the division of services or facilities in connection therewith because of race, color, religion, national origin, ethnic origin,
familial status, sex, handicap, disability, or sexual orientation, or age in the City of Omaha ifan individual is forty (40) years of age or older.
33.
Modification in Writing: Any modification of the terms of this agreement must be in writing and signed by all parties.
34.
Electronic Transaction Authorization: The undersigned agree that all documents bearing signatures, initials or other marks of
acknowledgement by a Purchaser, Seller and/or Broker/agent relating to a real estate transaction contemplated under this Agreement,
including offers, counteroffers and acceptances: (1) may be transmitted electronically, and/or may use digital signature technology which is
compliant with state VETA and/or federal E-SIGN requirements and (2) that digital signatures as well as electronic copies of manual
signatures, whether scanned, digital photograph, facsimile or other means of image reproduction shall be treated in all respects as originals,
and (3) that they will submit all original signatures if requested by the other party. This Agreement and any addendums or modifications may
be signed in counterparts and such counterparts shall be considered as one document.
35.
Arbitration and Mediation:
A. Disputes: The term ''Dispute" shall include, without limitation, any controversy, complaint, dispute, claim or disagreement relating to or
arising out of the construction, interpretation, enforcement, or breach of the terms of this Purchase Agreement between Purchaser and
Seller.
B. Mediation: In the event of any Dispute, any party to the Dispute may seek non-binding mediation in an attempt to resolve the dispute by
giving fifteen ( 15) days written notice of a request for such mediation to all other parties to the Dispute. The request for mediation must
be made within three hundred sixty five (365) days after the party making the request knew, or exercising reasonable diligence and care,
should have known, of the Dispute. In no case shall such request be made after the statute of limitations on a civil suit based on the
Dispute would have run. Such mediation shall be administered by the American Arbitration Association and shall be conducted according
to the American Arbitration Association's Commercial Rules - Real Estate Industry Arbitration Rules (including a Mediation Alternative)
or such other mediation service versed in real estate practices of the locality.
C.
Arbitration: Any Dispute that is not resolved by informal settlement or mediation shall be resolved exclusively by binding
arbitration. Such arbitration shall be administered by the American Arbitration Association and shall be conducted according to
the American Arbitration Association's Commercial Rules - Real Estate Industry Arbitration Rules (Including a Mediation
Alternative). The arbiter(s) shall apply Nebraska substantive and procedural law to the arbitration proceeding. Arbitration shall
be commenced by written demand made by any one or more of the parties to the Dispute given to all other parties to the Dispute.
The demand for arbitration must be in writing and must be given by personal delivery or certified mail, return receipt requested,
within three hundred sixty five (365) days after the party making the demand knew, or exercising reasonable diligence and care,
should have known, of the Dispute. Notwithstanding the previous sentence, in the case that the parties unsuccessfully attempt
mediation to resolve a Dispute, the demand for arbitration shall be made within sixty (60) days of the final mediation session.
However, in no case shall such demand be made after the statute of limitations on a civil suit based on the Dispute would have
run. The prevailing party shall be entitled to costs and fees of the arbitration and, in the discretion of the arbitrator who shall
take into account the relative merits of the opponent's case, the arbiter may award attorney's fees and arbitration costs to the
prevailing party.
D. Provisional Remedies. The filing of a judicial action to enable the reporting of a notice of pending action, for order of attachment,
receivership, injunction, or other like provisional remedies, shall not constitute a waiver of mediation or arbitration under this provision,
nor shall it constitute a breach of the duty to arbitrate.
E.
Exclusions. The terms of this Section shall not apply to: 1) Foreclosure or other action or proceeding to enforce a deed of trust, mortgage
or land contract; or 2) The filing or enforcement of a construction or similar lien.
Cl 2015 Omaha Area Board of REALTORS®
Page 6 oflO
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Seller(s) Initials:
• Purchase Agreement - Cont.
F.
Waiver. BY SIGNING TIIlS PURCHASE AGREEMENT, THE PARTIES AGREE THAT EVERY DISPUTE DESCRIBED ABOVE
THAT IS NOT RESOLVED BY INFORMAL SETTLEMENT OR MEDIATION WILL BE DECIDED EXCLUSIVELY BY
ARBITRATION AND THAT ANY ARBITRATION DECISION WILL BE FINAL AND BINDING. THE PARTIES AGREE THAT
THEY WILL RECEIVE ALL THE RIGHTS AND BENEFITS OF ARBITRATION BUT ARE GIVING UP RIGHTS THEY MIGHT
HAVE TO LITIGATE THOSE CLAIMS AND DISPUTES IN A COURT OR JURY TRIAL, OR TO PARTICIPATE AS A
REPRESENTATIVE OR MEMBER OF ANY CLASS OF CLAIMANTS IN CONNECTION WITH ANY SUCH DISPUTES. NO
PARTY TO THIS AGREEMENT, WHETHER REALTOR® OR SELLER, SHALL BE ENTITLED TO JOIN OR CONSOLIDATE
DISPUTES BY OR AGAINST OTHERS IN ANY ARBITRATION, OR TO INCLUDE IN ANY ARBITRATION ANY DISPUTE AS
A REPRESENTATIVE OR MEMBER OF A CLASS, OR TO ACT IN ANY ARBITRATION IN THE INTEREST OF THE
GENERAL PUBLIC OR IN ANY PRIVATE ATTORNEY GENERAL CAPACITY.
36.
Offer Expiration: This offer to purchase is subject to acceptance by Seller on or before
20___,
at
o'clock
. M., Omaha, NE time. Purchaser acknowledges receipt of a signed copy of this Purchase Agreement,
as well as Estimated Purchaser's Closing Cost Statement ifrequired by law.
37.
List of Attachments and Addenda, and Disclosures:
D
D
D
Seller Property Condition Disclosure Statement
Disclosure oflnformation on Lead-Based Paint and/or Lead-Based Paint Hazards
S.I.D. Statement
Limited Dual Agency Agreement
Affiliated Business Arrangement Disclosure
D
D
D
D
D
D
D
D
D
D
THE REMAINDER OF TIDS PAGE INTENTIONALLY LEFT BLANK
C 2015 Omaha Area Board of REALTORS~
Page 7 oflO
1/20/2015 Form 200
Seller(s) Initials:
_ _ __
THIS CONTRACT CONTAINS AN ARBITRATION PROVISION WHICH MAY BE ENFORCED BY THE PARTIES. The
arbitration provision is contained in Section 35.
The undersigned parties executed this AGREEMENT.
Purchaser:-----------------Printed N a m e : - - - - - - - - - - - - - - - - -
Printed Name:
Address:------------------
Address: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
----------------
City: _ _ _ _ _ _ _ _ State: __ Zip: _ _ __
City: _ _ _ _ _ _ _ _ _ State: _ _ Zip: _ __
Phone: _ _ _ _ _ _ _ _ _ _ __
Phone: -----------~
NAMES FOR DEED
BUYER AGENT INFO
REALTOR® (Company Name)
AGENT NAME (Printed)
OFFICE ADDRESS
AGENT E-MAIL ADDRESS
BROKER CODE#
AGENT CODE#
OFFICE PHONE #
AGENT PHONE#
RECEIPT
*If deposit to be delivered later, see Section IOC.
RECEIVED FROM:
the sum of _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
($_ _ _ _ _ _ _ _ ___, DOLLARS (by _ _ _ _ _ _ _ _ _ ) to apply to the purchase price of the Property on terms and
conditions as stated. This receipt is not an acceptance of the above offer to purchase.
RECEIVED B Y : - - - - - - - - - - - - -
SIGNATURE _ _ _ _ _ _ _ _ _ _ _ __
PROPERTY ADDRESS: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
© 2015 Omaha Area Board of REALTORS®, Inc.
Page 8 oflO
1/20/2015 Form 200
Seller(s) Initials:
'~hase Agreement- Cont.
IACCEPTANCE I
The Seller, whether one or more, accepts the foregoing offer to purchase on
20_, at
o'clock
. M., Omaha, NE time, on the terms stated and agrees to convey title to the Property, deliver possession,
----and perform all the terms and conditions set forth, except as follows:
Seller acknowledges receipt of a copy of this Agreement with all identified addenda and, if required by law, an Estimated Seller's Closing
Statement.
The undersigned Seller executes this agreement as of the date set forth above.
Seller:
Seller:--------------------
STATE OF
STATE OF _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
COUNTY OF
COUNTY OF _ _ _ _ _ _ _ _ _ _ _ _ _ __
The foregoing Purchase agreement was acknowledged before me on
The foregoing Purchase agreement was acknowledged before me on
_ _ _ _ _ _ _ _ _ _ _ _ _ _ at ___ o'clock_m.,
_ _ _ _ _ _ _ _ _ _ _ _ _ _ at ___ o'clock_m.,
by: - - - - - - - - - - - - Seller's Name (Printed)
NOTARY PUBLIC
Seller's Name (Printed)
COMMISSION EXPIRES
SEAL:
NOTARY PUBLIC
COMMISSION EXPIRES
SEAL:
SELLER AGENT INFO
REALTOR® (Company Name)
AGENT NAME (Printed)
OFFICE ADDRESS
AGENT E-MAIL ADDRESS
BROKER CODE#
AGENT CODE#
OFFICE PHONE#
AGENT PHONE#
PROPERTY ADDRF.SS: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
C 2015 Omaha Area Boud ofREALTORSll>
Page 9 oflO
1/20/2015 Fonn 200
Seller(s) Initials:
IACCEPTANCE I
The Purchaser, whether one or more, accepts the foregoing Seller's counteroffer to purchase on
20__,
at
o'clock
. M., Omaha., NE time, on the terms stated and perform all the terms and conditions set forth, except as
follows:
Purchaser acknowledges receipt of a copy of this Agreement with all identified addenda and, if required by law, an Estimated Purchaser's
Closing Statement.
The undersigned Purchaser executes this agreement as of the date set forth above.
Purchaser:--------------------
Purchaser:-------------------
REAL ESTATE CERTIFICATION
We the undersigned Seller(s) Purchaser(s) and Agent(s), involved in this transaction, each certify that the terms of this Purchase Agreement
are true to the best of our knowledge and belief and that any other agreement entered into by any of these parties in connection with this
transaction is attached to this Purchase Agreement.
Purchaser:
Seller:
date
Purchaser:
date
Seller:
date
Agent:
date
Agent:
date
date
PURCHASER RECEIPT
20_ _ .
Purchaser acknowledges receipt of a fully executed copy of this Purchase Agreement on
NOTE: At closing, Purchaser required to have wire transferred funds or certified or cashier's check for the balance of amounts due.
Purchaser:
------------------
Purchaser:------------------
PROPERlY ADDRESS: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Cl 2015 Omaha Area Board of REALTORS®
Page 10 of10
1120/2015 Form 200
Seller(s) Initials:
9074
Federal Register I Vol. 61, No. 45 I Wednesday, March 6, 1996 I Rules and Regulations
(Sample Disclosure Format for Target Housing Sales)
Disclosure of Information on Lead-Based Paint and/or Lead-Based Paint Hazards
Lead Warning Statement
EvefY purchaser of any interest in residential real property on which a residential dwelling was built prior to
1978 is notified that such property may present exposure to lead from lead-based paint that may place
young children at risk of developing lead poisoning. Lead poisoning in young children may produce permanent neurological damage, including learning disabilities, reduced intelligence quotient, behavioral problems, and impaired memofY. Lead poisoning also poses a particular risk to pregnant women. The seller of
any interest in residential real property is required to provide the buyer with any information on lead-based
paint hazards from risk assessments or inspections in the seller's possession and notify the buyer of any
known lead-based paint hazards. A risk assessment or inspection for possible lead-based paint hazards is
recommended prior to purchase.
Seller's Disclosure
(a) Presence of lead-based paint and/or lead-based paint hazards (check (i) or (ii) below):
(i)-- Known lead-based paint and/or lead-based paint hazards are present in the housing (explain).
(ii)-Seller has no knowledge of lead-based paint and/or lead-based paint hazards in the housing.
(b) Records and reports available to the seller (check (i) or (ii) below):
(i)-Seller has provided the purchaser with all available records and reports pertaining to lead-based
paint and/or lead-based paint hazards in the housing (list documents below).
(ii)-- Seller has no reports or records pertaining to lead-based paint and/or lead-based paint hazards in
the housing.
Purchaser's Acknowledgment (initial)
(c)--Purchaser has received copies of all information listed above.
(d)--Purchaser has received the pamphlet Protect Your Family from Lead in Your Home.
(e)-Purchaser has (check (i) or (ii) below):
(i)-- received a 10-day opportunity (or mutually agreed upon period) to conduct a risk assessment or inspection for the presence of lead-based paint and/or lead-based paint hazards; or
(ii)-- waived the opportunity to conduct a risk assessment or inspection for the presence of lead-based
paint and/or lead-based paint hazards.
Agent's Acknowledgment (initial)
(f)-Agent has informed the seller of the seller's obligations under 42 U.S.C. 4852d and is aware of his/her
responsibility to ensure compliance.
Certification of Accuracy
The following parties have reviewed the information above and certify, to the best of their knowledge, that
the information they have provided is true and accurate.
Seller
Date
Seller
Date
Purchaser
Date
Purchaser
Date
Agent
Date
Agent
Date
·7575
OVOID
LJ CORRECTED
Fil.ER'S name, street address, city or town, state or province, counlry, ZIP
er fcrelgn postal code, and telephone number
1 Date of closing
OMB No. 1545-0997
2 Gross proceeds
~©14
Proceeds From Real
Estate Transactions
Form 1099-S
3 Addrells or legal description 6ncludlng olty, state. and ZIP c:ode)
$
FILER'S federal identification number! TRANSFEROR'S identification number
Copy A
For
Internal Revenue
TRANSFEROR'S name
Sel'.Vlce Center
File with Form 1096.
For Privacy Act
Street address {including apt. no~
City or town, state or province, eounlry, and ZIP or foreign postal code
4 Chack here if the transferor received or will receive
property or services as part of the consideration .,..
S Buyer's part of real estate tax
Account or escrow number {see instructions)
$
Form
1099..S
cat. No. 642921:
www.lrs.gov/fonn1099s
Do N.ot Cut or Separate Forms on This Page -
D
and Paperwork
Reduction Act
Notice, see the
2014 General
Instructions for
Certain
lnfonnation
Returns.
Department of the Treaswy • Internal Revenue Se!Vice
Do Not Cut or Separate Forms on This Page
Title Insurance Commitment
Daniel C. Pauley
Dunmire Fisher & Hastings, Hastings
August 12, 2015
University of Nebraska College of Law, Lincoln
7/29/2015
By:
Daniel C. Pauley
Dunmire, Fisher & Hastings


American Land &
Title Association Over
view of Title
Insurance.
Types of Title
Insurance




Owners
Lenders
Cost/Payment
Why Title Insurance is
important.





The Title
Commitment
Why you have to
understand Title
Insurance First.
What to look for.
How to protect your
client and yourself.
Changes to the law.
1
7/29/2015


An Owner’s Policy is
typically issued in the
amount of the real estate
purchase price, and
remains in effect for as
long as the owner, or his
or her heirs, retains an
interest in the property. In
addition to identifying
risk before a transaction is
completed, the Owner’s
Policy will pay valid
claims and all defense
costs against attacks on
the title.

A Loan Policy assures the
lender of the validity,
priority and enforceability
of its lien (mortgage) –
serving as protection for
the lender’s security
interest in the property. A
Loan Policy is issued in
the amount of the loan,
and liability decreases as
the mortgage debt is
reduced.
Owner’s title insurance (an Owner’s Policy),
which protects the buyer, and lender’s title
insurance (a Loan Policy), which protects the
lender. In a typical residential transaction, the
title policy often required by the mortgage
lender will not safeguard the rights and
interests of the homebuyer, therefore, a
separate Owner’s Policy is necessary.
2
7/29/2015


The cost of a title insurance policy relative to
the cost of a property transaction is about onehalf to one percent of the purchase price. The
premium is based on the purchase price of the
property, generally determined by the value of
the land plus any improvements.
As an example, the cost for an owner’s policy
for a home in Washington, D.C., listed at
$474,000 and assuming a 20 percent down
payment, is around $1,100. Over the average
duration of homeownership, that spreads out
to about $85 annually or about $7 per month.
The longer you own your property, the overall
cost decreases even more.
3
7/29/2015






This section lists what kinds of risks the policy insures
against. However, the policy makes it clear that the
insurance of the listed risks are subject to (1) the Exclusions
listed following the Covered Risks, (2) any exceptions listed
in Schedule B, and (3) the Conditions. In the most current
ALTA Owner’s policy, there are ten covered risks listed in
the policy. Some of the most important covered risks are:
the risk that someone else owns your property
that there is some defect or encumbrance on your title
caused by fraud or forgery
any liens for real estate taxes or assessments that are due but
unpaid
that your title is unmarketable, that is, you are unable to sell
your property to a purchaser because of a title defect
right of access to and from your land.
4
7/29/2015


Exclusions limit the coverage of the policy. They
deal with issues that are outside the control of the
title company. The ALTA owner’s policy contains
five exclusions, which include matters such as
governmental regulations on the land and eminent
domain, as well as title matters created or agreed
to by the insured, or title defects known to the
insured but not disclosed in writing to the title
company prior to the date of the policy. The policy
does not insure against any defect or title issue that
is created or attaches to the property after the date
of the policy. Also, the policy does not insure
against the effects of bankruptcy law on the
transaction creating the insured interest.
Schedule A sets forth the specific information
on the title and policy, such as the date of
policy, the amount of insurance, the insured,
the legal description of the land insured by the
policy and the estate insured, such as fee
simple or leasehold. Schedule A must be
attached to the policy in order for the policy to
be valid.
5
7/29/2015


Schedule B lists the various exceptions to the title
that the title company found when it performed its
title search. Common exceptions would be things
such as prior unreleased mortgages on the
property, easements, taxes, restrictions on the use
of the property, and any other limitations on the
title such as homestead rights or survey issues if
no survey has been performed. By listing various
items as exceptions, the title company is telling the
insured that these items are not covered by the title
policy, and that the title company will not pay a
claim or defend against a claim based on these
excepted items.
This section outlines the relationship between the insured
and the title company. Paragraph 1 contains the definitions
of certain terms used in the policy. Terms such as “Insured,”
“Insured Claimant,” “Knowledge” and “Public Records” are
defined so as to eliminate any ambiguity. There are several
different paragraphs setting out how a claim under the
policy is handled, including how to provide notice of a
claim, what is required to prove loss, and the requirement
that the insured must cooperate with the title company in
the handling of the claim. The Conditions describe the rights
of the title company to pay or settle the claim, and the
determination, extent and limitation of liability. Most
policies also contain a paragraph that allows the insured or
the title company to demand arbitration if the amount is
under $2 million.
6
7/29/2015








prior deeds
mortgages
divorce decrees
court judgments
delinquent taxes
child support payments
Owner’s title insurance protects your right to
your home.
By searching, clearing and insuring the title to
your home before you buy it, your owner’s title
policy offers protection for your property
rights for as long as you and your heirs own
your home. If ownership of your property ever
comes into question, an owner’s title insurance
policy protects you from expensive legal
problems that could result in the loss of your
home.
7
7/29/2015


Title. Within ten (10) days after the signing of this
Agreement by Sellers and Buyer, Sellers shall furnish to
Buyer a title insurance commitment. Within ten (10) days
thereafter, Buyer shall furnish Sellers an opinion of Buyer’s
counsel showing any defects in title which render the title
unmarketable. Sellers shall thereafter have a reasonable time
in which to cure any such defects. If they cannot be cured or
are not cured within a reasonable time, Buyer may either
waive such defects or rescind this agreement. To be
marketable, title must show the Property to be in the Sellers,
free and clear of all liens, encumbrances or special taxes
levied or assessed. Building and use restrictions which do
not interfere with the current uses of the Property, utility
easements not exceeding ten feet (10’) in width abutting the
boundary lines of the Property, and covenants of record
which do not interfere with the use of the Property as
currently used shall not be considered defects of title.
Title. Within fifteen (15) days after execution of this
Agreement, Seller shall cause to be furnished to Buyer a title
insurance commitment effective as of the date of this
Agreement. Within ten (10) days thereafter, Buyer shall
furnish Seller an opinion of Buyer’s counsel showing any
defects in title which render the title unmarketable. Seller
shall thereafter have a reasonable time in which to cure any
such defects. If they cannot be cured or are not cured within
a reasonable time, Buyer may either waive such defects or
rescind this Agreement. To be marketable, title must show
the Property to be in the Seller, free and clear of all liens,
encumbrances or special taxes levied or assessed. Building
and use restrictions, utility easements, and limitations of
record which do not interfere with the use of the Property as
currently used shall not be considered defects of title.
8
7/29/2015

Dear Real Estate Attorneys:


The Consumer Protection Financial Bureau (CFPB) has new rules and regulations that take effect October 3, 2015. They will have a big impact on
residential real estate practices in Nebraska and across the country. If you haven’t heard about them yet, you should take a look at the regulations or
read one of the many online articles about them soon.


Most importantly, on October 3, 2015, a new closing statement replaces the old HUD-1 you are familiar with. This form is variously called the CFPB
disclosure form, the TILA-RESPA integrated disclosure form or the TRID form, but its basic purpose is to give homebuyers complete information
before closing and an opportunity to complain to the federal government about lending and closing abuses.


For us real estate lawyers, there are three important things to note about the new CFPB disclosure rules: (1) if a bank loan is involved, it will
generally take 45-60 days after a purchase agreement is signed before closing can occur; (2) if there are any material changes on the disclosure form
(such as increases in the interest rate, changes in the purchase price or property being sold, additional closing costs, etc.) after it is sent to the buyer, a
new 3-7 day waiting period takes effect. Therefore, some closings are going to be delayed at the last minute. This will especially cause problems for
successive closings (A sells to B, B sells to C, and they all are set to close and move into new homes the same day) because any delay in the chain of
closings may result in someone being without a place to stay for a while; (3) if you want the closing agent to collect your fees and costs for a
residential real estate sale, please have your final figures to the agent a week or more in advance. The other alternative is to collect those fees outside
of closing so that you are paid directly by the client and not through the title company.


Until we all know more about how the new rules are going to work, if you are using Prairie Title or one of the other local escrow companies to close
a sale involving a bank loan on or after October 3rd, please call them in advance to confirm what they need from you.


We appreciate your business and hope the above information is helpful. If you have any questions, please call me or Laurie Hawes or Jennifer
Krings at Prairie Title.


Sincerely,




Dick Witt

www.alta.org

www.homeclosing101.org








Title insurance overview:
http://www.alta.org/about/TitleInsuranceOverview.pdf
Fidelity National’s (Chicago Title’s parent company’s) brochure on why owner’s title insurance is
needed:
https://nationalagency.fntg.com/Uploads/0/Module/Links/FNTG%20MWA%20why_you_need_o
wners_title_insurance_brochure.pdf
Closing protection letters:
https://nationalagency.fntg.com/Uploads/0/Module/Links/13%20-%20KBYC%20%20CPL%20vs%20Insurance.pdf
What is the CFPB:
https://nationalagency.fntg.com/Uploads/0/Module/Links/9%20-%20KBYC%20%20What%20is%20the%20CFPB.pdf
What attorneys need to know about new CFPB regs (which now take effect October 3):
https://nationalagency.fntg.com/Uploads/0/Module/Links/Five%20Things%20Attorneys%20Need
%20to%20Know.pdf
9

Basic Purchase Agreements - Nebraska State Bar Association

Transcription

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