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Basic Form Of Contract For Sale Of Realty
THIS AGREEMENT made on [date] by and between [Name] of [Address], hereinafter referred to as "Seller", and [Name] of [Address], hereinafter referred to as "Purchaser", do hereby agree as follows:
1. Agreement to Buy and Sell and Description. Seller will sell and convey, and Purchaser will purchase, all the land, with the buildings and improvements on the land, being in the [description of property]. This sale includes all of Seller's right, title, and interest, in and to any land in the bed of any street, road, or avenue opened or proposed, in front of or adjoining the premises, to the center line, and all of Seller's right, title, and interest in and to any award made or to be made in lieu of Seller's right, title, and interest in and to any unpaid award for damage to the premises by reason of change of grade of any street; and Seller will execute and deliver to Purchaser, on closing of title, or thereafter on demand, all instruments reasonably needed for the conveyance and the assignment and collection of any award.
2. Purchase Price. The price is ........ dollars ($........), payable as follows: ........ dollars ($........), on the signing of this Agreement, by check subject to collection, the receipt of which is acknowledged: ........ dollars ($........), in cash or good certified check on the delivery of the deed: ........ dollars ($........), by taking title subject to and assuming a [type of mortgage] now a lien on the premises in that amount, bearing interest at the rate of ........ percent (........%) per annum, the principal due and payable on [date]; ........ dollars ($........), by Purchaser signing, acknowledging, and delivering to Seller a bond or, at the option of Seller, a note secured by a purchase-money second mortgage on the premises, in that amount, payable on [date] together with interest at the rate of ........ percent (........%) per annum payable.
3. Form of Mortgage. The bond or note and mortgage to be given by Purchaser shall be drawn on the standard forms of [appropriate governing unit, e.g., name of town, county] Board of Title Underwriters by Seller's attorney at Purchaser's expense. Purchaser shall also pay the mortgage-recording tax and recording fees and pay for and affix to the mortgage any revenue stamps that may be necessary.
If the purchase-money mortgage is a subordinate mortgage on the premises, it shall provide that it is subject and subordinate to the lien of the existing first mortgage of ........ dollars ($.........), any extensions of the first mortgages and any mortgage or consolidated mortgage that may be placed on the premises in lieu of the first mortgage, and to any extensions of them provided:
(a) the interest rate is not greater than ........ percent (........%) per annum and
(b) if the principal amount of the new or consolidated mortgage exceeds the amount of principal owing and unpaid on the existing mortgage at the time the new mortgage or consolidated mortgage is placed, the excess must be paid to the holder of the purchase-money mortgage as a reduction of principal.
(c) The purchase-money mortgage shall also provide that the payment of the excess to the holder will not alter or affect any regular installments of principal payable under the purchase-money order mortgage. The purchase-money mortgage will also provide that the holder will on demand and without charge, execute, acknowledge, and deliver any agreement or agreements reasonably required to effectuate such subordination.
4. Estoppel Certificate. If there is a mortgage on the premises, Seller will deliver to Purchaser at the time of delivery of the deed a certificate executed and acknowledged by the holder of the mortgage, in form for recording, certifying the amount of the unpaid principal and interest, the date of maturity, and rate of interest of the mortgage. Seller shall pay the fees for recording the certificate.
5. Restrictions of Title. The premises are sold and are to be conveyed subject to:
(a) Zoning regulations and ordinances of the city, town, or village in which the premises lie that are not violated by existing structures
(b) Consents by Seller or any former owner of the premises for the erection of any structure on, under, or above any street or streets on which the premises abut
(c) Encroachment of any stoops, areas, cellar steps, trim, and cornices upon any street or highway
(d) [description of any easements to which the premises are subject]
6. Violations. All notes or notices of violations of law or municipal ordinances, orders, or requirements issued by the Departments of Housing and Buildings, Fire, Labor, Health, or any other state or municipal department affecting the premises shall be complied with by Seller and the premises shall be conveyed free of them. This provision of this Contract shall survive delivery of the deed. Seller shall furnish Purchaser with an authorization to make the necessary searches for notes or notices of violations of law or municipal ordinances.
7. Apportionment. The following are to be apportioned:
(a) rents as collected;
(b) interest on mortgages;
(c) premiums on existing transferable insurance policies or renewals of those expiring before the closing;
(d) taxes and sewer rents on the basis of the fiscal year for which assessed;
(e) water charges on the basis of the calendar year; and
If the closing of the title occurs before the tax rate is fixed, the apportionment of taxes shall be upon the basis of the tax rate for the next preceding year applied to the latest assessed valuation.
If there is a water meter on the premises, Seller shall give Purchaser a reading to a date not more than [--] days prior to the time set for closing title, and the unfixed meter charge and the unfixed sewer rent for the intervening time shall be apportioned on the basis of the reading.
8. 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 be executed and acknowledged by Seller. Revenue stamps in the proper amount shall be affixed to the Deed by Seller, at Seller's expense. The Deed shall convey to Purchaser the fee simple of the premises, free of all encumbrances, except as provided in this Agreement.
9. Nature of Title. Seller shall give and Purchaser accept a title that [name] Title Company will approve and insure.
10. Purchaser's Lien. All sums paid on account of this Contract, and the reasonable expenses of the examination of the title to the premises and of the survey, are liens on the premises, but the liens shall not continue after any default by Purchaser.
11. Personal Property and Fixtures. All fixtures and articles of personal property attached to or used in connection with the premises are represented to be owned by Seller, free from all liens and encumbrances except as otherwise stated, and are included in this sale. Without limiting the generality of Seller's representation, fixtures and articles of personal property include plumbing, heating, lighting, cooking fixtures, air-conditioning fixtures and units, ranges, refrigerators, radios, and television aerials, bathroom and kitchen cabinets, mantels, door mirrors, venetian blinds, shades, screens, awnings, store windows, window boxes, storm doors, mailboxes, weather vanes, flagpoles, pumps, shrubbery, and outdoor statuary.
12. Unpaid Taxes and Charges. Any unpaid taxes, assessments, water charges, and sewer rents that Seller is obligated to pay and discharge together with interest and penalties to a date not less than two business days after the date of closing title, may, at Seller's option, be allowed to Purchaser out of the balance of the purchase price, provided official bills with interest and penalties figured to not less than two business days after the date of closing title date are furnished by Seller at the closing.
If, at the date of closing title, there are any other liens or encumbrances that Seller is obligated to discharge, Seller may use any portion of the balance of the purchase price to satisfy them, provided Seller delivers to Purchaser at the closing title instruments in recordable form, sufficient to satisfy any liens and encumbrances of record, together with the cost of recording or filing the instruments.
Purchaser, if requested within a reasonable time before the date of closing of title, will provide at the closing separate certified checks that in total will amount to the balance of the purchase price, to facilitate the satisfaction of any liens or encumbrances. The existence of any taxes or other liens and encumbrances shall not be deemed objections to title if Seller complies with these requirements.
13. Judgments, Etc. If a search of the title discloses judgments, bankruptcies, or other returns against persons having the same or similar names to that of Seller, Seller will on request deliver to Purchaser an affidavit showing that these judgments, bankruptcies, or other returns are not against Seller.
14. Seller's Inability to Deliver Good Title. If Seller cannot convey title in accordance with the terms of this Contract, Seller's sole liability will be to refund to Purchaser the amount paid on account of the purchase price and to pay the net cost of examining the title, which cost shall not exceed the charges fixed by the [appropriate governing unit] Board of Title Underwriters; Seller shall refund the net cost of any survey made in connection with the examination of title incurred by Purchaser, and, upon Seller's making the refund and payment, this Contract shall be considered canceled.
15. Closing Date. The Deed shall be delivered upon the receipt of Purchaser's payments at the office of [name] at [hour] AM [PM] [time zone] on [date].
16. Broker's Commission. The parties agree that [name of broker] brought about this sale, and Seller agrees to pay the broker's commission at the rates established or adopted by the board of real estate brokers in the locality where the property is situated.
17. Prior Understandings and Agreements. It is understood and agreed that all understandings and agreements previously made between the parties are merged in this Contract, which alone fully and completely expresses their agreement, neither party relying upon any statement or representation made by the other not embodied in this Contract. Purchaser has inspected the buildings standing on the premises and is thoroughly acquainted with their condition.
18. Oral Changes. This Agreement may not be changed or terminated orally. The Agreement applies to and binds the heirs, executors, administrators, successors, and assigns of the parties.
19. Multiple Parties. If two or more persons constitute either Seller or Purchaser, the word "Seller" or the word "Purchaser" shall be construed as if it read "Sellers" or "Purchasers" whenever the sense of this Agreement requires.
IN WITNESS WHEREOF, this Agreement has been duly executed by the parties thereto.
In presence of: [Name]
This Section for Notary:
STATE OF -------)
) ss: [date]
COUNTY OF ------)
On [Date] before me, [Name of Notary], notary, personally appeared [Name of Person(s) Involved], personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
Witness my hand and official seal.
[Name of Notary Public]
My commission expires: [date]