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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).
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
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
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
c. Determine the grading and elevations of all plots;
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 ($........), on the signing of
this Contract, the receipt of which is hereby
b. ........ dollars ($........), by cash or certified
check upon closing of title; and
c. ........ dollars ($........), by obtaining a
conventional [or, adjustable rate] first mortgage,
which shall bear interest at ........ percent
(........%) for [number] years, the proceeds of
which shall be turned over to Seller upon closing of
6. Mortgage Application. Purchasers will make diligent,
truthful, and proper applications to lending institutions designated by
Seller and, without delay, will furnish those instruments or information
that may be required by the lending institutions to process Purchasers'
applications. Purchasers shall be deemed in default of contract if
verification and/or credit information requested by the lending
institution is not given by Purchasers within a reasonable time of
7. Costs, Fees, and Apportionment of Taxes, Etc. Seller shall
pay the following costs of fees: title policy to insure the mortgagee;
attorney fees for drawing the mortgage instruments; mortgage tax;
recording fee of the mortgage instruments; survey; and inspection fees.
Purchaser will pay to Seller at the time of closing of title and sum of
........ dollars ($........) 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
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.