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Builder's Contract Residence

Job No. [number]

AGREEMENT made and dated [date] between [name] of [address] (Seller), and [names], residing at [address] (Purchasers).

WITNESSETH:

AGREEMENT TO BUY AND SELL AND DESCRIPTION OF PROPERTY. Seller agrees to sell and convey, or cause to be conveyed, and Purchasers agree to purchase, the plot of land with the building to be erected on it, in [county, state], known and designated as Lot [number] in Block [number] on "Map of [local unit, e.g., town or county]," Map No. [number], filed in the [county] Clerk's Office.

1. Ingress and Egress. This is agreed to, together with street rights or an easement for ingress and egress to and from the nearest public highway, if the streets have not been dedicated.

2. Covenants, Restrictions, Easements. The premises are sold subject to covenants and restrictions of record, if any, provided these do not prohibit erection and maintenance of the improvements to be erected hereunder, to utility easements, and the first mortgage hereinafter described.

3. Construction of House. Seller will complete upon the premises a dwelling substantially similar to the interior and exterior of Seller's Model House known as [type], located at [address]. Seller reserves the right to:

a. Make those changes or substitutions of equal quality in the construction that may be required, authorized, or approved by the lending institution or governmental agencies having appropriate jurisdiction;

b. Determine the design, including the reversal of building layout and location of the building on the plot to fit into the general pattern of the development;

c. Determine the grading and elevations of all plots; and

d. Determine the elevation of foundations and streets to conform with topographical conditions.

All furniture, furnishings, interior decorations, mirrors, lighting fixtures, and wallpaper exhibited in Model House are for exhibition purposes only and are not included in this sale.

4. Fixtures Included. Included in this sale are the following: (a) four-burner range and wall oven; (b) the front, both sides, and [number] feet in rear of house only will be landscaped and seeded; (c) a [type]-heating plant; (d) kitchen cabinets; (e) electrical fixtures as displayed in the Model House; (f) plumbing and fixtures; and (g) wallpaper to be selected by Purchasers within [number] days of notification, at a place to be designated by Seller, at a list price of ........ dollars ($........) per roll to be installed at Seller's expense. If Purchasers select higher-priced wallpaper, they will pay the additional cost of the paper and the additional cost or charge of the painting contractor for installing the paper. Painting of ceilings to be white casein; woodwork shall be white oil paint. Except as otherwise specifically agreed upon, Purchasers may not select more than one design of wallpaper to be used on all walls in any one room.

5. Payment of Purchase Price. The purchase price is ........ dollars ($........) payable as follows:

a......... dollars ($........), on the signing of this Contract, the receipt of which is hereby acknowledged;

b......... dollars ($........), by cash or certified check upon closing of title; and

c......... dollars ($........), by obtaining a conventional [or, adjustable rate] first mortgage, which shall bear interest at ........ percent (........%) for [number] years, the proceeds of which shall be turned over to Seller upon closing of title.

6. Mortgage Application. Purchasers will make diligent, truthful, and proper applications to lending institutions designated by Seller and, without delay, will furnish those instruments or information that may be required by the lending institutions to process Purchasers' applications. Purchasers shall be deemed in default of contract if verification and/or credit information requested by the lending institution is not given by Purchasers within a reasonable time of request.

7. Costs, Fees, and Apportionment of Taxes, Etc. Seller shall pay the following costs of fees: title policy to insure the mortgagee; attorney fees for drawing the mortgage instruments; mortgage tax; recording fee of the mortgage instruments; survey; and inspection fees. Purchaser will pay to Seller at the time of closing of title and sum of ........ dollars ($........) to cover all of the expenses advanced by Seller in connection with the mortgage loan. At the time of the closing of title, Purchasers will also pay the lending institution's origination and/or service charges of ........ percent (........%) of the amount of the mortgage. Purchasers will apportion with Seller and pay the taxes, fuel rates, and fire insurance premiums on existing policies as may be determined to be due at the time of the closing of title. Purchasers shall also make the usual prepayments to the lending institution.

8. Subordination to Building Loan. It is agreed that all the terms and provisions of this Contract are subject and subordinate to the lien of any building loan mortgage heretofore or hereafter made and any advances heretofore or hereafter made thereon, whether voluntary or involuntary, and whether made in accordance with the building loan schedule of payments or accelerated by virtue of the lender's right to make advances before they become due in accordance with the schedule of payments, as well as any payments or expenses already made or incurred or which may hereafter be made or incurred, pursuant to the terms of the building loan mortgage or incidental to them or to protect the security of the building loan mortgage to the full extent thereof without the execution of any further legal documents by Purchasers.

9. Acceptance of Mortgage Application. If Purchasers' application for a mortgage loan is approved and a commitment issued, then Purchasers will execute, acknowledge, and deliver the bond, mortgage, extension, and/or modification agreements, or any other instruments that may be necessary or required by the lending institution, to properly effectuate the placing of the mortgage loan and, if required to do so by the lending institution, will pay off and discharge all outstanding personal obligations prior to title closing and present proof thereof. If this Contract is executed by one person, Purchaser agrees to obtain the execution by Purchaser's spouse, if any, of all instruments referred to above. If the mortgage loan is approved in a reduced amount, then Purchasers will accept such mortgage as reduced, provided the reduction does not exceed ........ dollars ($........), and will pay the difference at title closing in cash or certified check so that the total purchase price shall not vary.

10. Rejection of Mortgage Application. If Purchasers' applications for a mortgage loan are rejected by the lending institutions, Seller will return any sums paid pursuant to the terms of this Contract, and, upon such refund, this Contract shall be null and void, and the parties shall be mutually released from any further liability or obligation, provided that Purchasers have fully cooperated with the lending institution.

11. Seller's Default. If for any reason, except Seller's willful default, Seller is unable to complete the construction of the building and deliver title in accordance with the provisions of this Contract, Seller's liability shall be limited to the return of any payments made by Purchasers pursuant to the terms of this Contract, and, upon such refund, this Contract shall be null and void, and the parties shall be mutually released from any further liability or obligation.

12. Construction Delays. If construction or completion of the building is stopped or delayed by reason of Seller's inability to obtain materials and/or labor, then the closing of title shall be adjourned to a date to be fixed by Seller or, at Seller's option, this Contract may be canceled upon the return to Purchasers of the payments made by them in accordance with this Contract.

13. Adjournment of Closing. If the building is not ready for occupancy at the date set for the closing of title, then the title closing shall be adjourned to a date set by Seller. The date shall not be more than one month after the dwelling is ready for occupancy and all necessary reports, approvals, and instruments have been issued.

14. Unpaid Taxes and Liens. The existence of unpaid taxes or liens of any kind at the time of the closing of title shall not constitute an objection to title provided Seller deposits a sufficient amount with the title company so that the company is willing to insure against collection of the unpaid taxes on liens from the property.

15. No Possession Before Closing. Purchasers shall not take possession of the premises before the deed is delivered and Purchasers have fully complied with this Contract. Should Purchasers violate this provision, Purchasers consent that Seller shall have the right to dispossess them from the premises as squatters and intruders by summary proceedings or other action permitted by law.

16. Purchasers' Default. If Purchasers fail to take title, or in the event of an unauthorized possession in violation of this Contract, the Contract shall be canceled upon [number] days' notice in writing to Purchasers, and the amounts paid hereunder by Purchasers shall belong to Seller as liquidated damages, and Seller may bring such legal proceedings as will enforce Seller's rights.

17. Form of Deed. The Deed shall be the usual bargain and sale deed with covenant against grantor's acts in proper statutory short form for record and shall have revenue stamps in proper amounts affixed thereto by Seller, at Seller's expense, so as to convey to Purchasers the fee simple of the premises, free of all encumbrances except as otherwise provided in this Contract, and a good and marketable title.

18. Risk of Loss. Risk of loss or damage to the property by fire or other cause until delivery of Deed is assumed by Seller.

19. Payment of Assessments. If, at the time of the delivery of the Deed, the premises, or any part of them, are affected by an assessment or assessments that are or may become payable in annual installments, of which the first installment is then a charge or lien or has been paid, then for the purposes of this Contract, all the unpaid installments of any assessments, including those that are to become due and payable after the delivery of the Deed, shall be deemed to be due and payable and be liens upon the premises and shall be paid and discharged by Seller upon the delivery of the Deed.

20. Guaranties of Roof, Plumbing, and Heating. At the closing of title, Seller shall deliver to Purchasers guaranties from the roofing, plumbing, and heating contractors, which shall guarantee the roofing work against all defective workmanship and materials for a period of one (1) year from the date of closing of title under natural wear and tear, and which shall guarantee the plumbing and heating for a like period, against defective workmanship and materials to the extent of the manufacturer's guaranty.

21. No Signs. Purchasers, for themselves and their successors, covenant and agree that for a period of [number] years from the closing of title, they will not place any sign upon any part of the premises advertising them for sale, rent, or lease, or any other purpose except a name sign or house number sign or a professional sign, without first obtaining Seller's written consent. This provision shall survive the closing of title and delivery of the Deed.

22. Purchaser's Liens. All sums paid on account of this Contract are liens thereon, but the liens shall not continue after default by Purchasers.

23. Tile and Fixture Colors. Purchasers have a choice of color of bathroom fixtures, tiles, and Grade B Kentile in kitchen, exterior shingles, formica, roof, etc., to be selected from Seller's available samples. All selections are to be made at a time and place designated by Seller and must be given to Seller within one (1) week after notification by Seller to Purchasers. Otherwise, Seller reserves the right to decorate the premises with Seller's own selections, and Purchasers waive the right of selection.

24. Uncompleted Work. If any minor item of work is incomplete at the time of the closing title, Purchasers agree to close title to the premises and to accept a letter from Seller to complete such items within a reasonable time.

25. Entire Agreement. It is expressly understood and agreed that this Contract states the entire agreement and that Seller is not and shall not be bound by any stipulations, representations, agreements, or promises, oral or otherwise, not printed or inserted in this Contract. Purchasers agree that no representations have been made by Seller to Purchasers in order to induce Purchasers to enter into this Contract other than as expressly stated in the Contract. This Contract cannot be changed orally.

26. Broker's Commission. The parties agree that [name] brought about this sale, and Seller agrees to pay the broker's commission in accordance with a separate agreement.

27. Certificate of Occupancy. Seller shall deliver to Purchasers at the closing of title a certificate of occupancy and a fire underwriters certificate.

28. Closing Date. The Deed shall be delivered upon the receipt of the payment at the office designated by Seller or the lending institution accepting the mortgage at [hour] AM [PM], [time zone], or on about [date].

29. Assignment of Contract. This Contract is binding upon the heirs, executors, administrators, and successors of the respective parties, and it is expressly understood and agreed that Purchasers will not assign this Contract without Seller's written consent.

[signature]

Seller

[signatures]

Purchasers