Microsoft Word - Virginia REALTORS Standard Clause Booklet

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Contents

1 AGENCY ............................................................................................................ 33

1.1 Acknowledgements of Licensure, Ownership, etc. .................................. 33

1.2 Agency Disclosure ................................................................................... 33

2 APPRAISAL ........................................................................................................ 44

2.1 Reimbursement for Appraisal .................................................................. 44

2.2 Appraisal Contingency ............................................................................. 44

3 CONTINGENCIES .............................................................................................. 66

3.1 Back-up Offers – Non-Contingent Back-ups ............................................ 66

3.2 Contingent Upon Sale of Real Property ................................................... 66

3.3 Sale of Purchaser's Property ................................................................... 77

3.4 Third-Party Approval ................................................................................ 77

3.5 Income and Expense Statement for 1-4 unit Leased Property ................. 88

3.6 Provision regarding Proof of Certificate of Occupancy ............................ 88

3.7 Replacement Home for Seller .................................................................. 88

3.8 Right of First Refusal – Back-Up Offer ..................................................... 99

4 FINANCING / ESCROW ................................................................................. 1010

4.1 Escalation Clause ................................................................................ 1010

4.2 Like-Kind Exchanges ........................................................................... 1010

4.3 Seller Paying Closing Costs ................................................................. 1010

4.4 Transfer of Deposit to New Purchase Contract (Inter-office) ............... 1111

5 HOME INSPECTION ...................................................................................... 1212

5.1 “AS IS” provision .................................................................................. 1212

5.2 Radon Test Clause – Alternate Language ........................................... 1212

5.3 Radon Contingency Addendum ........................................................... 1313

5.4 Simple Inspection and Right to Terminate ........................................... 1313

5.5 Wood Destroying Organism Inspection and Report ............................. 1414

6 PROPERTY / LEGAL DESCRIPTION ............................................................ 1515

6.1 Legal Description ................................................................................. 1515

6.2 Parcel Size ........................................................................................... 1515

7 Property Management .................................................................................... 1717

7.1 Early Termination of Lease .................................................................. 1717

7.2 Leasing Fee ......................................................................................... 1717

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7.3 Mortgage Information ........................................................................... 1717

7.4 Pet Added After Lease ......................................................................... 1818

8 MISCELLANEOUS ......................................................................................... 1919

8.1 Home Warranty Contract ..................................................................... 1919

8.2 For Sale By Owner .............................................................................. 1919

8.3 Counter Offer (For use in the Residential Sales Contract, Form 600,

when rejecting or countering an offer) ................................................. 1919

8.4 Equipment Condition and Inspection ................................................... 1919

9 SETTLEMENT / POSSESSION ..................................................................... 2020

9.1 Settlement to Coincide ......................................................................... 2020

9.2 TRID Authorization .............................................................................. 2020

10 RISK MANAGEMENT ACKNOWLEDGEMENTS ........................................... 2121

10.1 Earnest Money Deposit Not Held by Agent .......................................... 2121

10.2 COVID-19 Hold Harmless (Sales) ....................................................... 2121

10.3 COVID-19 Hold Harmless (Property Management) ............................. 2121

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1 AGENCY

1.1 Acknowledgements of Licensure, Ownership, etc.

1. LICENSEE BUYING AS PRINCIPAL

Seller acknowledges that the Purchaser is a licensed real estate

broker/salesperson acting as a principal on his own behalf.

2. LICENSEE SELLING AS PRINCIPAL

Purchaser acknowledges that the Seller is a licensed real estate

broker/salesperson acting as a principal on his own behalf.

3. SELLER'S RELATIONSHIP TO BROKER

Purchaser acknowledges that Seller is associated with, related by blood or

marriage, or has a business relationship with the listing Broker.

4. PURCHASER'S RELATIONSHIP TO BROKER

Seller acknowledges that Purchaser is associated with, related by blood or

marriage, or has a business relationship with the listing Broker.

1.2 Agency Disclosure

Client acknowledges and agrees that Client has been advised of the benefits of

[describe your advice here, subject examples: obtaining a survey, obtaining a

home inspection, obtaining a termite and/or moisture inspection, buying the

property sight unseen, etc.] by __________________________ [Listing Firm and

Agent, Selling Firm and Agent] and that the Client has decided not to accept the

advice and recommendation. Accordingly, Client agrees to release

__________________________ [Listing Firm and Agent, Selling Firm and Agent]

from any and all liability in connection with Client’s decision, and to hold

harmless, defend and indemnify __________________________ [Listing Firm

and Agent, Selling Firm and Agent] in connection therewith and from any and all

claims, causes of action, demands, losses, costs, damages and expenses in any

way arising from items or liabilities that would be revealed if Client followed

__________________________ [Listing Firm and Agent, Selling Firm and Agent]

advice and recommendation.

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2 APPRAISAL

2.1 Reimbursement for Appraisal

In the event property does not appraise for Purchase Price and Seller elects not

to reduce the purchase price to equal the appraised value, Seller agrees to

reimburse Purchaser for the cost of the appraisal and home inspection within ___

days of receipt of Purchaser’s invoice.

2.2 Appraisal Contingency

Option 1:

This contract is contingent upon the Property appraising at or above the

Purchase Price in an appraisal ordered by the lender (or Purchaser in a cash

transaction), paid by the Purchaser. Purchaser agrees to provide written

notification of the appraisal results within 3 days of receiving notice from the

lender/appraiser. If said appraised value is not equal to or greater than the

Purchase Price, the Seller will have 3 days to agree in writing to reduce the sales

price. If Seller is not willing to reduce the Purchase Price to the appraised value,

Purchaser reserves the right to either: a) waive this contingency and proceed to

settlement, or b) renegotiate the terms of this contract, or c) terminate this

contract and receive a full refund of earnest money deposit. Such determination

by the Purchaser must be made within 3 days of Seller refusing to reduce the

Purchase Price. If the Purchaser fails to make a determination within the required

time, the contingency is removed and the contract will continue in full force.

Option 2:

This contract is contingent upon the Property appraising at or above Purchase

Price in an appraisal ordered by the lender, paid by the Purchaser. If said

appraised value is not equal to or greater than the Purchase Price, Purchaser

reserves the right to either: a) waive this contingency and proceed to settlement,

or b) renegotiate the terms of this contract, or c) terminate this contract and

receive a full refund of earnest money deposit.

Option 3:

This Contract is contingent upon an appraisal pursuant to this paragraph. Buyer

shall have until 9 p.m. days (minimum of 21 days recommended)

following the Date of Ratification to obtain an appraisal (“Appraisal Deadline”). In

the event that no date is filled in, the Appraisal Deadline is the financing deadline

set forth in paragraph 5(b) of the Contract. Purchaser shall provide notice to

Seller by the Appraisal Deadline, as follows:

A. The appraisal is equal to or greater than the Purchase Price. This contingency

has been satisfied and removed. The parties shall proceed to settlement; OR

B. The appraisal is equal to or greater than the Purchase Price. However,

Purchaser elects not to proceed with consummation of this Contract because the

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Property does not satisfy the lender(s) requirements, the appraisal does not allow

for the specified financing or the Property is inadequate collateral. Such notice

must be accompanied by a written denial of the financing showing written

evidence of the lender(s)’s decision concerning the Property. Purchaser must

provide such written evidence concurrently with Purchaser’s notice of election not

to proceed; OR

C. The appraisal is not equal to or greater than the Purchase Price and

Purchaser elects not to proceed with consummation of this Contract unless Seller

elects to lower the Purchase Price to the appraised value. Purchaser’s notice

shall include a copy of the written statement setting forth the appraised value of

the Property. It will be Seller’s option to lower the Purchase Price to the

appraised value and the parties shall proceed to settlement at the lower

Purchase Price. If Seller does not make this election, the parties may agree to

mutually acceptable terms. Each election must be made by notice within 3 days

after notice from the other party. The parties will immediately sign any

appropriate amendments. If the parties fail to agree, this Contract will terminate;

D. Purchaser elects to proceed with consummation of this Contract without

regard to the appraisal. The parties shall proceed to settlement. If Purchaser fails

to give Seller notice by the Appraisal Deadline, this contingency will continue,

unless Seller at Seller’s option gives notice to Purchaser that this Contract will

terminate. If Seller delivers such notice, this Contract will terminate at 9 p.m. on

the third day following Delivery of Seller’s notice, unless prior to such date and

time Purchaser delivers the required notice.

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3 CONTINGENCIES

3.1 Back-up Offers – Non-Contingent Back-ups

Purchaser does hereby acknowledge that this Contract of Purchase is the “First

Back-up” which is inferior to the rights of another Contract of Purchase which is

the “Primary”, previously accepted by the Seller from

__________________dated_____________. The “First Backup” is contingent

upon the “Primary” being lawfully terminated by a written release. Upon such

termination of the Primary, the First Back up shall be in full force and effect. If the

“Primary” is not terminated by ___________(time), ______________(date), the

“First Back-up” shall terminate and the earnest money deposit shall be returned

to the Purchaser. Purchaser reserves the right to withdraw the “First Back-up” at

any time prior to the point where the “First Back-up” becomes the “Primary”

pursuant to these provisions and the earnest money deposit shall be returned to

the Purchaser.

3.2 Contingent Upon Sale of Real Property

This Contract is contingent upon the sale and settlement of the Purchaser’s real

property located at __________________________________________ (the

“Contingency”). Purchaser agrees to list said property for sale with a licensed

real estate broker within __________________ (___) calendar days from the

date of the execution of this Contract and to make good faith efforts to market

such property. Said property must be sold within _______________ (___)

calendar days of this Contract and settlement must take place within

______________________ (___) calendar days of this Contract, or the Seller, at

its option, may terminate this Contract by giving written notice to the Purchaser.

If a bona fide non-contingent offer (except for a financing contingency) is made

on the Subject Property, the Purchaser shall have _____________________

(___) hours from written notification by Seller, excluding weekends and holidays,

within which to remove the Contingency by (1) executing a written amendment to

this Contract removing the Contingency; and, (2) if this Contract is contingent

upon financing, by delivering to the Seller or the Seller’s broker, a letter from a

lending institution that, in the opinion of the lender, the Purchaser has sufficient

funds available to complete this transaction and is qualified for the proposed

financing NOTWITHSTANDING the fact that the Purchaser has not sold and

settled on the real property referenced above and might be liable for two loan

payments concurrently.

If the Purchaser fails to remove the Contingency within the time period specified

above, this Contract shall be deemed terminated and the parties shall execute a

written release. Upon the execution of such release, the earnest money deposit

shall be refunded to the Purchaser.

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3.3 Sale of Purchaser's Property

1. WITH KICK-OUT PROVISION

This Contract of Purchase is contingent upon the sale of Purchaser's

property at ______________________________________________________.

Seller reserves the right to continue to market the subject property and to receive

offers to purchase same. If the Seller accepts another offer to purchase the

subject property as a "First Back-up", Seller will provide Purchaser written notice

that Seller has received another offer on the subject property and Purchaser has

_____ hours from the date and time stated on said notice to waive the said

contingency. Purchaser will, in addition to waiving this contingency, provide

Seller with written evidence satisfactory to Seller that Purchaser can comply with

all terms and conditions, including financing, of this Contract by settlement. In

the event Purchaser does not timely respond to Seller as specified herein, this

Contract of Purchase shall be null and void and the earnest money deposit shall

be returned to the Purchaser.

2. WITHOUT KICK-OUT PROVISION

This Contract of Purchase is contingent upon Purchaser's receiving

and accepting a Contract of Purchase for the sale of his property at

________________________________________________________________

on or before _________________, _____, at _______ ___.m. (the “Kick Out

Date”). The Purchaser agrees to immediately execute a standard listing

agreement to place his property for sale and to maintain said listing agreement

until the Kick Out Date. If no Contract of Purchase is entered into by such the

Kick Out Date, this Contract of Purchase shall automatically terminate and the

earnest money deposit shall be returned to the Purchaser.

3.4 Third-Party Approval

The obligations of the Purchaser are contingent upon approval of the terms

of this Contract by:

____________________________________________________________

(specifically state who will approve)

____________________________________________________________

Purchaser shall diligently pursue this approval in good faith and, unless

Seller or Seller's Agent is notified in writing to the contrary on or before

(time and date), this contingency shall be deemed automatically satisfied

and this Contract of Purchase shall be in full force and effect.

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3.5 Income and Expense Statement for 1-4 unit Leased Property

Study Period of Leases (multifamily):

Seller represents that the Property is subject to certain residential leases. Within

five (5) days from the date that this Contract is fully executed by the parties, Seller

shall provide Purchaser copies of the following: (i) all leases and lease applications

for each tenant; (ii) rent rolls or rental summary for the most recent twelve month

period; (iii) a statement of all tenants’ security deposits; and (iv) a summary of any

threatened or pending legal action or defaults by or against any tenant or the Seller.

If Purchaser is not satisfied with its review of the aforementioned leases or

information, Purchaser may terminate this Contract by written notice to Seller

within five (5) days after receipt of said leases and information, and thereupon

Purchaser’s deposit shall be refunded to Purchaser and the parties shall have no

further obligation under the Contract. If Purchaser fails to terminate the Contract

within five (5) days after receipt of said leases and information, then this

contingency shall be deemed waived.

At settlement, Purchaser shall take title to the Property subject to the said leases

and the rights of parties in possession thereunder. Seller shall transfer and assign

the said leases and all security deposits to Purchaser by separate assignment of

leases prepared by Seller’s attorney. Purchaser shall not be responsible for

collecting any past due sums owed to Seller prior to settlement.

3.6 Provision regarding Proof of Certificate of Occupancy

The Contract is subject to Seller providing Purchaser with a valid certificate of

occupancy or a certificate of zoning compliance from the local governing authority

that the Property is zoned for use as a [insert as applicable: single/two family

residence, etc.]. If Seller is unable to provide Purchaser with said certificate within

fifteen (15) days after this Contract is fully executed by the parties, then Purchaser

may terminate the Contract by providing written notice to Seller, and thereupon

Purchaser’s Deposit shall be refunded in full to Purchaser, and neither party shall

have any further obligation hereunder.

[Note, can also substitute: that the Property’s finished attic [basement, bonus

room, etc.] has been approved for use as part of the residence.]

3.7 Replacement Home for Seller

Seller’s duty to perform hereunder is contingent upon Seller contracting to

purchase a suitable replacement home. In the event Seller has not

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contracted for the purchase of a suitable replacement home by 12:00 noon

on _____________ (date and time) then Seller shall have the right to

terminate this contract without further obligations and refund Purchaser’s

deposit; provided, however, that if Seller does not exercise this right to

terminate the contract in writing by 12:00 noon on ____________(same

date as above) then this contingency shall be deemed waived and satisfied,

and Seller shall be obligated to perform hereunder. Any and all “trigger”

dates (e.g. home inspection, loan application, association disclosures, etc.)

provided by this Contract shall run from (a) the date that Selling Firm is

notified in writing by Listing Firm that Seller has contracted to purchase a

suitable replacement home or (b) 12:00 noon on ____________(same date

as above), whichever first occurs.

3.8 Right of First Refusal – Back-Up Offer

Seller has an agreement with another potential purchaser(s) (“Right

Holder(s)”) giving that purchaser(s) a right of first refusal (“Right”) to

purchase the Property. Purchaser agrees their offer will be considered a

back-up offer pending the decision regarding whether to exercise the Right.

Seller agrees to notify the Right Holder(s) within ____ days of this offer.

Seller and Purchaser agree that this Contract will only be binding on

Purchaser if the right is not exercised by

(“Right Deadline”). If the Right is exercised by

the Right Holder(s), this Contract will be void. All deadlines and

contingencies in this Contract will begin to run at the earlier of Seller

notifying Purchaser in writing that the Right will not be exercised or Right

Deadline.

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4 FINANCING / ESCROW

4.1 Escalation Clause

If Seller receives one or more bona fide written offers to purchase the Property

prior to acceptance of this Contract, then the Purchase Price shall be increased

by ______________ ($_______) over the highest bona fide offer, net of

concessions, received by Seller, not to exceed ______________ ($_______).

The parties intend this Contract to be a binding contract, and not an offer to enter

into a contract at a later date. The price determination will take place as set forth

herein, but the fact that the price is not determined as of the time this Contract is

fully executed by both parties shall not defeat the existence of this Contract.

Listing firm shall provide Selling Firm with a copy of the highest bona fide

purchase offer.

4.2 Like-Kind Exchanges

Sample provision for Seller entering into a 1031 Exchange:

Seller may elect to include the sale of the Property in an IRS Section 1031 Like

Kind Exchange (a tax-deferred exchange). In the event Seller makes such an

election, Purchaser agrees to execute such documents necessary to effectuate

such an Exchange, but in no event shall such Exchange affect the terms of the

transaction or Seller’s responsibilities to Purchaser under the Contract. Seller shall

bear the sole costs as a result of this election.

Sample provision for Purchaser entering into a 1031 Exchange:

Purchaser may elect to include the purchase of the Property in an IRS Section

1031 Like Kind Exchange (a tax-deferred exchange). In the event Purchaser

makes such an election, Seller agrees to execute such documents necessary to

effectuate such an Exchange, but in no event shall such Exchange affect the terms

of the transaction or Purchaser’s responsibilities to Seller under the Contract.

Purchaser shall bear the sole costs as a result of this election.

4.3 Seller Paying Closing Costs

1. Seller agrees to pay the following itemized closing costs in connection with

the settlement of this transaction:

2. Seller agrees to pay up to the sum of $ ___________ [or _______% of

the loan amount/ or purchase price] towards the closing costs incurred by

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the Purchaser in connection with transaction, including allowable prepaid

items, discount points and other closing costs.

(NOTE: It is advisable to check with each lender to determine allowable

Seller concessions, the maximum amounts, and any specific wording a

particular loan program requires.)

4.4 Transfer of Deposit to New Purchase Contract (Inter-office)

_________________________ (Name of Purchaser) does hereby authorize and

direct the escrow holder __________________________________(name of

party or firm holding the escrow) to transfer, assign and to continue to hold as an

earnest money deposit on the purchase of real property located at

______________________________________________________________ in

_______________________ (City or County), Virginia, certain funds in the

amount of $__________________ ($_____________) which were placed in

escrow to a contract to purchase real property located at

__________________________________ (City or County), Virginia.

Note: This clause applies only to inter-office transfers and is to be used only

after or in conjunction with the executed release of the first contract of purchase

to which original deposit applies.

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5 HOME INSPECTION

5.1 “AS IS” provision

The parties acknowledge that the Property is sold in “AS IS” condition as

determined as of the date of this Contract and Purchaser agrees to accept the

Property at settlement in such condition. Seller makes no representation or

warranty, express or implied, as to the condition of the Property, or any system,

equipment or appliance therein. All clauses regarding any repairs to the Property

by Seller or any representations or warranties relating to the physical condition of

the Property by Seller (including without limitation, paragraphs 14, 16, 17, 19 and

24) are hereby deleted from the Contract and of no legal effect. Seller shall have

no obligation to make repairs to the Property or any system, equipment or

appliance therein, except to conform the Property to the condition as of the date of

this Contract. If, at or prior to settlement, Seller refuses to repair any damage to

the Property occurring after the date of this Contract, then Purchaser shall have

the right to terminate this Contract by written notice to Seller and receive a refund

of the Deposit, or waive the damage and proceed to settlement with no adjustment

to the Purchase Price.

5.2 Radon Test Clause – Alternate Language

This contract is contingent until _______ (time) on ____________, 20__, upon

the Purchaser, at Purchaser’s expense, having the Property inspected for the

presence of radon by a testing firm listed with the U. S. Environmental Protection

Agency (“EPA”) using an EPA-approved screening test method. This

contingency will terminate at the deadline unless the Purchaser delivers to the

Seller a written and signed addendum stating that radon was found to be present

at levels which exceed the action level established by the EPA and that such

levels are unsatisfactory to the Purchaser, together with a copy of the radon

inspection report. The Seller may, at the Seller’s option, within _____ (___)

calendar days after receipt of the addendum, state in writing whether or not the

Seller will correct the condition. If the Seller will correct the condition, the Seller

shall furnish the Purchaser with certification from the inspecting company

demonstrating that the condition has been remedied before the date of

settlement. This certification must be delivered within 14 days after delivering to

Purchaser or seller’s agreement to correct the condition. If the Seller will not

correct the condition, the Purchaser shall have _______ (___) calendar days

after notice from the Seller to remove this contingency and accept the radon

condition or this contract shall terminate. The Parties agree to the execution of a

written release, after which the earnest money deposit shall be returned to the

Purchaser.

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5.3 Radon Contingency Addendum

This Addendum, which is attached to and made a part of a Contract of Purchase

by and between _____________________________(Seller) and

____________________________________________ (Purchaser) for Property

located at____________________________________ and dated ____ provides:

Purchaser, at its expense, will have the property inspected for the presence of

radon by a testing firm listed with the Environmental Protection Agency, using as

a minimum the charcoal canister testing method of the continuous working

monitor. The inspection shall be completed and the Seller notified of the results

within ____________ (___) calendar days of the Purchaser’s receipt of a fully

executed copy of the Purchase Contract. If radon is found to be present at levels

which exceed 4 pci/L (picocuries per liter), the action level established by the

EPA, the Purchaser may void the Contract or ask that the Seller correct the

condition and furnish the Purchaser with a certification demonstrating that the

condition has been remedied to a level at or below the EPA action level. The re-

mediation shall be completed before the date of settlement or within

____________________ (___) days of ratification of the Purchase Contract,

whichever shall occur first.

If the Seller refuses to satisfactorily re-mediate the radon level, the Purchaser

may, at its option, terminate the Purchase Contract or waive this contingency by

providing written notice to the Seller within ____________ (___) calendar days of

the Seller’s refusal. In the event the Purchase Contract is terminated, ALL

PARTIES, INCLUDING BROKERS, AGREE TO EXECUTE A WRITTEN

RELEASE OF THE PURCHASE CONTRACT WHICH INCLUDES A RETURN

OF ALL DEPOSIT MONIES TO THE PURCHASER.

PURCHASER DATE

SELLER DATE

5.4 Simple Inspection and Right to Terminate

This Contract is contingent upon Purchaser being satisfied with the results of an

inspection of the Property. Seller grants Purchaser ten (10) days from the date

that this Contract is fully executed by the parties (the “Study Period”) to conduct

such inspections of the Property as Purchaser deems necessary. If Purchaser is

not satisfied with the results of said inspection, Purchaser may terminate this

Contract by written notice to Seller within the Study Period. In such event,

Purchaser’s deposit shall be refunded to Purchaser and the parties shall have no

further obligation under the Contract. If Purchaser fails to terminate the Contract

within the Study Period, this contingency shall be deemed waived.

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5.5 Wood Destroying Organism Inspection and Report

Prior to settlement, Seller shall provide Purchaser a report, dated not more than

30 days prior to date of settlement, from a wood infestation control company

certified and licensed by the Commonwealth of Virginia and properly insured,

concerning the presence of or damage from wood-destroying organisms in the

primary dwelling, in any other dwelling(s) on the Property as to which a certificate

of occupancy has been issued and is in effect, and in the following additional

structures

(the “Applicable Structures”). If the inspection reveals active infestation in any of

the Applicable Structures, Seller shall have such infestation treated by a company

licensed by the Commonwealth of Virginia and properly insured. If the inspection

reveals damage to any Applicable Structure, Seller shall have the damage repaired

by a contractor licensed in the Commonwealth of Virginia; provided, however, that

if the estimated aggregate cost of such treatment or repairs or both exceeds

$1,000, and Purchaser and Seller cannot agree on how the amount exceeding

$1,000, will be paid, Purchaser shall have the right either (i) to accept repairs or

treatment not exceeding $1,000, in which event Seller shall have such repairs or

treatment performed at Seller’s expense, (ii) to receive a credit at settlement in the

amount of $1,000, or (iii) to terminate this Contract and receive a refund of the

Deposit.

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6 PROPERTY / LEGAL DESCRIPTION

6.1 Legal Description

When a Contract of Purchase is being prepared by the REALTOR, great care

must be given to making sure a complete and accurate legal description of the

subject real property is used. If you have any questions about the accuracy of a

particular legal description, you should consult an attorney at law.

It is common, for example, to find a “Tax Map” reference used in a Contract of

Purchase as the legal description. Many times, the “Tax Map” referenced is an

old tax map and not the current tax map designation used by a particular locality.

Other times, one will find the legal description listed as “Lot 25 of Section 3 of

Holiday Acres Subdivision” when really the proper legal description is “Lot 25,

Block B, Section 3 of Holiday acres Subdivision”. Make sure you put a complete

and accurate legal description in the Contract of Purchase.

If the so-called “metes and bounds” description is to be used as the legal

description, you are better off attaching a “Schedule A” referencing the legal

description. This “Schedule A” should be the properly prepared legal description

from the Seller’s deed, for example. The REALTOR should be extremely careful

since the omission of any part of the legal description “100;E;55, etc.” can result

in the legal description being totally wrong. It is recommended to you that more

than a street address is necessary for a proper legal description to be placed in a

Contract for Purchase. Again, if you have any questions, you should consult an

attorney at law.

6.2 Parcel Size

1. The obligations of the Purchaser are contingent upon the property conveyed

hereby consisting of at least (acres) (square feet).

2. This is a sale in gross and not by the (acre) (square foot).

3. This is a sale by the (acre) (square feet) at the rate of $(amount) per (acre)

(square feet) and the obligations of the Purchaser are contingent upon said

property consisting of at least (acre) (square feet). In the event said property is

less then the (acre) (square feet) referenced herein, Purchaser may (marked

where indicated):

_______A. Declare this Contract of Purchase null and void and all parties

shall be released, and the earnest money deposit shall be returned after all

parties execute a release agreement.

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_______B. Provide written notice to Seller that Purchaser hereby makes

an offer to purchase the subject real property for the sum of $________ which

offer must be accepted by Seller on or before ______________, 20_____, at

____________, ____.m., or this Contract of Purchase will be null and void.

4. Purchaser automatically waives this contingency unless Purchaser provides

Seller written notice as provided herein on or before ________________,

20_____, at ____m.

(NOTE: Paragraph 4 should be used in conjunction with paragraph 1 and 3,

Paragraph 4 is not applicable to sales in gross as provided in paragraph 2.)

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7 Property Management

7.1 Early Termination of Lease

In addition to the rights set forth above, any Tenant has the right to terminate this

Lease if transferred fifty (50) miles or more (radius) from the Premises. Tenant

will provide written documentation of the transfer from their current employer at

the time of the Lease. The termination shall be effective on the last day of the

second calendar month following the month in which the Landlord receives the

notice of termination. The Tenant shall provide the following termination or

cancellation fee: ____ month’s rent, or $__________.

7.2 Leasing Fee

Owner agrees to pay a fee of

when a tenant has been procured and a lease executed. This leasing fee is

separate from the management fee. These fees are earned when the lease is

executed, and is payable on all Rents during the original Term, any renewals,

extensions, expansions, replacements, relocations, or new leasings between

Owner and the tenant or its successors and assigns, including, without limitation,

any entity affiliated with, controlled or owned by or under common control or

ownership with the tenant, its principals or owners. No sale of the Property shall

release Owner or its successor from the obligations under this Agreement.

Owner agrees that, at the request of Agent, all leases for the Property will contain

a provision incorporating the commission rights of Agent hereunder, as well as

the rights set forth in Section above of this Agreement.

7.3 Mortgage Information

Is Agent to make Deed of Trust (mortgage) payments: Yes No

When is Agent to begin making payments?

Landlord must notify mortgage company in writing if Agent is to handle payments and supply

payment books, coupons, and envelopes (if applicable).

Landlord must have funds available in the account in order to make payments.

First Deed of Trust: PITI: PI Only:

Lender: Phone:

Address:

Amount of Payment $ Loan No. Due:

Second Deed of Trust:

Lender: Phone:

Address:

Amount of Payment $ Loan No. Due:

Property Taxes: Due:

Insurance: Due:

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7.4 Pet Added After Lease

This language is to be used with the Pet Addendum (Form 220) for pets being added after the

lease has been signed.

Tenant agrees to pay a Pet Deposit in the amount of ________. This amount supersedes the

amount listed for Pet Deposit in Paragraph 1(i) of the Lease.

Tenant agrees to pay periodic Pet Rent in the amount of _______ every _______. This amount is

due on the date specified in Paragraph 4(a) of the Lease. This Pet Rent amount supersedes the

amount listed in Paragraph 1(h) of the Lease.

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8 MISCELLANEOUS

8.1 Home Warranty Contract

Seller agrees to furnish Purchaser a Home Warranty Contract to be effective as

of the date of settlement, or as otherwise provided therein. The Home Warranty

Contract shall be paid for by _________________________ and will be delivered

to Purchaser at settlement or as otherwise provided therein.

8.2 For Sale By Owner

Purchaser is a party to a written brokerage agreement with Selling Firm. Seller

agrees to pay Selling Firm a brokerage fee equal to _____% of the Purchase

Price. Such brokerage fee is in addition to any other fees that may be paid to

Selling Firm by Purchaser.

8.3 Counter Offer (For use in the Residential Sales Contract, Form 600, when

rejecting or countering an offer)

The Purchaser or Seller has received and:

REJECTED this offer in its entirety

COUNTERED this offer with Counter Offer #

8.4 Equipment Condition and Inspection

Seller agrees to remove any and all personal property that is not conveying

pursuant to the Contract or another written agreement, and all trash, prior to the

pre-settlement walk through. Purchaser is entitled to delay settlement, if

necessary, to conduct a pre-settlement walk through after Seller has removed all

personal property that is not conveying and all trash.

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9 SETTLEMENT / POSSESSION

9.1 Settlement to Coincide

Settlement on this Contract of Purchase shall coincide with settlement on a

certain other Contract of Purchase for real property located at

________________________, upon which the subject Contract of Purchase is

contingent. All parties agree to cooperate so that settlements pursuant to the

said Contract of Purchase will occur simultaneously.

Settlement on this Contract of Purchase shall not take place until receipt of funds

from the settlement pursuant to the another Contract of Purchase, for real

property located at ____________________________________________ upon

which the subject Contract of Purchase is contingent.

9.2 TRID Authorization

The Parties agree to provide and consent to the disclosure of any and all

information requested by any party, real estate agent, lender, settlement agent or

attorney involved in this transaction to comply with applicable state or federal law

or regulation relating to real estate settlement practices and reporting, including

the TILA-RESPA Integrated Disclosure (TRID) rule.

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10 RISK MANAGEMENT ACKNOWLEDGEMENTS

10.1 Earnest Money Deposit Not Held by Agent

Purchaser acknowledges that _____________________________ is holding the

earnest money deposit and that the Broker has no control over the disposition of

funds in the event the transaction is not consummated.

NOTE: Consult with your Broker before using this clause and make sure your

client understands the ramifications of this action. Strike through any additional

language in the contract which suggests that the Broker is holding the deposit.

10.2 COVID-19 Hold Harmless (Sales)

In no event shall Broker, brokerage firm, or any agents or employees of the

brokerage firm, be responsible for or liable for any claims arising out of the

COVID-19 Pandemic; entry into the property by Invited Parties, any person(s)

accompanying an Invited Party, or any agent or third party entering the property

on an Invited Party’s behalf; or the availability of the property for showing or

inspection. Client understands the risks associated with entering properties

and/or allowing others to enter their property during the COVID-19 Pandemic.

Client releases, waives, discharges, and forever holds Broker, the brokerage

firm, and its agents and employees, individually and collectively, harmless from

and against claims, damages, losses, and suits arising from or in any way

connected with the Pandemic. Invited Parties includes, but Is not limited to,

potential buyers or tenants, agents, inspectors, contractors, appraisers, or other

third-parties related to a real estate transaction.

10.3 COVID-19 Hold Harmless (Property Management)

In no event shall Broker, brokerage firm, or any agents or employees of the

brokerage firm, be responsible for or liable for any claims arising out of the

COVID-19 Pandemic; entry into the property by Invited Parties, any person(s)

accompanying an Invited Party, or any agent or third party entering the property

on an Invited Party’s behalf; or the availability of the property for showing or

inspection. Tenant understands the risks associated with entering properties

and/or allowing others to enter their property during the COVID-19 Pandemic.

Tenant releases, waives, discharges, and forever holds Broker, the brokerage

firm, and its agents and employees, individually and collectively, harmless from

and against claims, damages, losses, and suits arising from or in any way

connected with the Pandemic. Invited Parties includes, but Is not limited to,

potential buyers or tenants, agents, inspectors, contractors, appraisers, or other

third-parties related to a real estate transaction.