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Condominium Unit Purchase Agreement
1. Parties. Agreement dated [date] between [name], having an office at [address] (Seller), and [name], residing at [address] (Buyer). Seller is the sole beneficiary under a trust agreement, dated [date], known as Trust No. [number], made with [title owner of record of the property] as trustee.
2. Description of Property. Seller agrees to sell and Buyer agrees to buy Unit No. [number] (Unit) in the property. This purchase entitles Buyer to exclusive ownership of Unit, as well as an undivided ---------- percent (----------%) interest, as tenant in common in the common elements of a building known as the [name] Condominium, located at the property legally described as follows: [description] (Property). The Property is commonly known as [name] located at [address].
3. Subject to Condominium Act. The Unit and ownership in the common elements are subject to the terms of the [name] Act of [state].
4. Purchase Price. The purchase price is ---------- dollars ($----------). Buyer now pays to Seller an earnest money deposit of ---------- dollars ($----------). The balance of the purchase price is due at the closing, plus or minus prorations between Buyer and Seller, and other charges payable by Buyer, including closing costs, lender's charges, if any, and two months' assessment reserve.
5. Financing Contingency.
(a) Terms of Financing. This Agreement is contingent on Buyer obtaining a mortgage commitment for ---------- dollars ($----------) to be amortized over [number] years, within [number] days of the acceptance of this Agreement by Seller.
(b) Notice to Seller. If Buyer cannot obtain a mortgage loan commitment, Buyer must notify Seller in writing within the period specified in Section 5(a). If Buyer fails to notify Seller, it is conclusively presumed that Buyer has either secured a mortgage commitment or will buy the Unit without mortgage financing.
(c) Seller's Option to Secure Mortgage for Buyer. If Buyer notifies Seller of an inability to obtain a mortgage loan, Seller may, at Seller's option, within [number] days after such notice, secure the mortgage loan commitment for Buyer. The mortgage loan commitment will be considered secured for Buyer only if the lender commits to loan Buyer the amount of the mortgage commitment noted in Section 5(a) at the rate and service charge being offered, at that time, by the lender to comparable borrowers for comparable mortgage loans.
If the required mortgage commitment is not secured, this Agreement will be considered null and void. At that point, any earnest money paid by Buyer will be returned.
(d) Buyer's Cooperation With Seller. If Seller tries to secure a mortgage loan commitment for Buyer, Buyer will provide to Seller, or a mortgagee, in a timely manner, all requested credit information, and will sign all papers relating to the loan application and the mortgage commitment.
6. Seller's Conveyance to Buyer. Seller agrees to convey to Buyer good title to the Unit and the applicable interest in the common elements of the Condominium, by a trustee's deed. This conveyance is subject to:
(a) assessments for incomplete improvements;
(b) recorded easements, covenants, restrictions, and building liens;
(d) zoning and building laws or ordinances;
(e) acts of or suffered by Buyer;
(f) the [name] Act of [state];
(g) the Declaration of Condominium Ownership for the Condominium, and any amendments;
(h) the existing lease to the Unit, to [name], which expires [date];
(i) party walls and party wall rights; and
(j) liens and other matters over which the title insurer, by indorsement, commits to insure.
(a) Items Adjusted. General real estate taxes, monthly condominium maintenance assessments, rents, lease security deposits, and other items customarily prorated, are to be adjusted as of the date of closing.
(b) Basis for Adjusting Taxes. General real estate taxes are to be prorated based on the last available tax bill. If the last tax bill is assessed on the entire Property, the tax on Buyer's Unit will be determined by multiplying the total tax bill by Buyer's percentage interest in the common Property.
8. Buyer's Possession Before Closing. If Buyer has possession of the Unit, as a tenant or lessee under a written lease, before the closing date, possession will continue on the same basis, and Buyer will make all rent payments until this sale is closed. Buyer's interest as tenant or lessee will be merged into the title as Unit Owner, at the closing.
9. Filing of Declaration. Before the closing date and delivery of the trustee's deed, Seller will record in the office of the Recorder of Deeds [county, state], a Declaration of Condominium Ownership for the Condominium. Seller has the right to make any changes it wants in the Declaration, except for changes that would affect Buyer's percentage of ownership in the common elements. Buyer must be notified of any changes before closing.
Buyer agrees to assume, at the date of closing, the obligations under the Declaration of Condominium Ownership that pertain to the Unit.
10. Payment of Assessment. Buyer agrees to deposit with the [name] Condominium Association, at the closing, an amount equal to [number] months of the monthly condominium maintenance assessment on the Unit, based on the first budget of the Association. The assessment payments will be used by the Association as a reserve for the operation and management of the Property, as stated in the Declaration of Condominium Ownership. Until [date], Seller will require all other Buyers of Units in the Condominium to pay this same [number] months' assessment to the Association.
On [date], Seller will pay this same [number]-month assessment fee to the Association for all unsold Units. Seller will also make monthly payments of this assessment on all Units owned by Seller until these Units are sold.
11. Escrow Closing and Title Insurance.
(a) Closing Date. The closing of title in accordance with this Agreement will take place [date, or means of calculation of date].
(b) Escrow Agreement. The closing will take place in accordance with an escrow agreement with [title insurance company] consistent with this Agreement.
(c) Title Insurance Policy. The escrow agreement will provide that [title insurance company] will issue a policy in the amount of the purchase price to Buyer, insuring title subject to
(i) the title exceptions set forth in Section 6 of this Agreement and
(ii) the general printed exceptions contained in the policy. The title policy or a commitment for it is conclusive evidence that good and merchantable title is being conveyed to Buyer.
(d) Closing Fees. Buyer is to pay for the title insurance policy premium any costs in connection with issuance of the policy, and fees for recording of the deed to Buyer and any other documents required in connection with this sale. Buyer and Seller will each pay one half of the escrow fee of [title insurance company]. Seller will pay all real estate transfer taxes.
(e) Defects in Title. If the title report shows a defect in Seller's title, Buyer is to notify Seller, and Seller is given [number] days after the notice to cure the defect.
12. Events of Default. The deed or purchase money does not have to be tendered if the other party has defaulted. The following constitutes default:
(a) Failure to Close. Failure to appear at the time and place stated on the notice of closing and to otherwise comply with Buyer's or Seller's obligations under this Agreement at closing.
(b) Mortgage Loan Actions. Failure to give Seller and/or mortgagee requested credit information and signatures on papers relating to the application for the mortgage commitment (see Section 5).
(c) Escrow Agreement. Failure to enter into an escrow agreement with [title insurance company] or make escrow deposits.
13. Remedies on Default.
(a) Default by Buyer. Buyer's deposit will be held by Seller. If Buyer defaults on the terms of this or any other supplemental written agreement, all payments by Buyer may be forfeited, at Seller's option. These monies will be considered liquidated damages and will be paid to or retained by Seller. If this happens, either this Agreement will become null and void, or Seller may elect any other available remedy.
(b) Default by Seller. If Seller fails to deliver title to the Unit, as provided in this Agreement, the Agreement will become null and void, and any amount paid or deposited by Buyer will be returned. The liability of Seller will be limited to the return to Buyer of the deposit.
14. Time. Time is of the essence in the Agreement.
15. Sales of Other Units. Seller may maintain, on the Property, offices, signs, parking areas, and model units necessary to promote and sell other units in the Condominium. Seller and Seller's agents, licensees, or invitees also have all rights of entry and exit to and from the Property.
16. Buyer's Transfer of Rights. Buyer will not transfer or assign this Agreement or any of the rights or interests in this Agreement without the prior written consent of Seller. At Seller's option, any assignment will be void.
17. Buyer's Warranties.
(a) Broker. Buyer warrants that no broker showed or sold the Unit to Buyer, other than an entity related to or affiliated with Seller.
(b) Condition of Unit. Buyer states that Buyer has inspected the Unit and is buying it, as well as the common elements, "as is" in their present condition, without any kind of express or implied warranty or representation by Seller or Seller's agent.
18. Joint Tenancy. If Buyers are husband and wife, they will hold the Unit and common elements as joint tenants, not as tenants in common.
19. Appliances and Fixtures. The appliances and fixtures in the Unit (along with a bill of sale for them, which is to be delivered at closing) are included in the sale of the Unit. These include air-conditioners, ranges, and refrigerators. Seller makes no warranty regarding these and other consumer products in the Unit. Only the warranties of the manufacturer, installer, and/or supplier are made on these fixtures, appliances, and consumer products. Buyer acknowledges that these warranties have been made available prior to the execution of this Agreement.
20. Destruction of Unit. If the Unit is destroyed or materially damaged by fire before delivery of the deed under this Agreement, this Agreement will become null and void at the option of Buyer. At that point, Buyer's deposit will be returned by Seller. Material damage is defined as that requiring more than ---------- dollars' ($----------) worth of repair.
21. Entire Agreement. This Contract is the entire Agreement between the parties. No other implied or express representations, warranties, or promises have been made between the parties or their agents. Any amendments or supplements to this Agreement must be in writing, executed by both Seller and Buyer, and attached to this Agreement.
22. Recording. Buyer will not record this Agreement or any memorandum of it.
23. Notice. All notices and demands for notice must be in writing. They will be considered to have been received on the day following the day that they are mailed, U.S. first-class mail, postage prepaid. They must be properly addressed to Seller at [address] or to Seller's attorney. These written notices may also be given by personal delivery to either Buyer, Seller, or their respective attorneys.
24. Execution of Agreement.
a. Irrevocable Offer by Buyer. When this Agreement has been executed by Buyer and delivered to Seller, it will be considered an irrevocable offer to purchase the Unit by Buyer. This offer will remain irrevocable for [number] days from the date of this Agreement.
(b) Acceptance by Seller. If Seller executes this Agreement and notifies Buyer of Seller's acceptance within [number] days, the offer will be considered accepted and the Agreement binding. This notification of acceptance from Seller to Buyer may be transmitted by
(i) delivery of a fully executed agreement to Buyer or
(ii) written notification to Buyer. The date of the postmark on the acceptance will determine if the notice was made within the required [number] day period. If the offer is not accepted on time, Seller may consider Buyer's offer to be a continuing one that may still be accepted unless Seller had received prior notice of revocation in writing from Buyer.
25. Buyer's Receipt of Documents. Buyer acknowledges receipt of
(a) the condominium Declaration, with amendments, if any;
(b) Bylaws of the Condominium Association;
(c) the first year's estimated operating budget for the Condominium; and
(d) a copy of the floor plan of the Unit. Buyer has received these documents from Seller in compliance with the [name] Act.
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]