Real Estate Purchase Contract (Condominium)

REAL ESTATE PURCHASE CONTRACT (CONDOMINIUM)

STATE OF ___________________

COUNTY OF ___________________
 

1. PARTIES: ___________________________________________________________________ (Seller) agrees to sell and convey to ___________________________________________________________________ (Purchaser) and Purchaser agrees to buy from Seller the Property described below.

2. PROPERTY AND CONDOMINIUM DOCUMENTS:

A. The Condominium Unit, improvements and accessories described below are collectively referred to as the “Property”.

(1) CONDOMINIUM UNIT: Unit _____________, in Building _________________________________, of ________________________________________________________, a condominium project, located at ________________________________________________________ (address/zip code), City of ______________________ [city] , ______________________ [county], ______________________ [state], described in the official records in said County; together with such Unit's undivided interest in the Common Elements designated by the Declaration, including those areas reserved as Limited Common Elements appurtenant to the Unit and such other rights to use the Common Elements which have been specifically assigned to the Unit in any other manner. Parking areas assigned to the Unit are: _____________________________________________________________________.

(2) IMPROVEMENTS: All fixtures and improvements attached to the above described real property including without limitation, the following permanently installed and built-in items, if any: all equipment and appliances, valances, screens, shutters, awnings, wall-to-wall carpeting, mirrors, ceiling fans, attic fans, mail boxes, television antennas and satellite dish system and equipment, heating and air conditioning units, security and fire detection equipment, wiring, plumbing and lighting fixtures, chandeliers, shrubbery, landscaping, outdoor cooking equipment, and all other property owned by Seller and attached to the above described Condominium Unit.

(3) ACCESSORIES: The following described related accessories, if any: window air conditioning units, stove, fireplace screens, curtains and rods, blinds, window shades, draperies and rods, controls for satellite dish system, controls for garage door openers, entry gate controls, door keys, mailbox keys, and artificial fireplace logs.

(4) EXCLUSIONS: The following improvements and accessories will be retained by Seller and excluded:

_________________________________________________________________________________________

_________________________________________________________________________________________.

B. The Declaration, Bylaws and any Rules of the Association are called "Documents".  

[Check one item only:]

_____  (1) Purchaser has received a copy of the Documents.  Purchaser is advised to read the Documents before signing the contract.

_____  (2) Purchaser has not received a copy of the Documents. Seller shall deliver the Documents to Purchaser within __________ days after the effective date of the contract. Purchaser may cancel the contract before the sixth day after Purchaser receives the Documents by handdelivering or mailing written notice of cancellation to Seller by certified United States mail, return receipt requested.

C. The Resale Certificate from the condominium owners association (the Association) is called the "Certificate". The Certificate must be in a form promulgated by the state or required by the parties.

[Check one item only:]

_____  (1) Purchaser has received the Certificate.

_____  (2) Purchaser has not received the Certificate. Seller shall deliver the Certificate to Purchaser within __________ days after the effective date of the contract. Purchaser may cancel the contract before the sixth day after the date Purchaser receives the Certificate by handdelivering or mailing written notice of cancellation to Seller by certified United States mail, return receipt requested.

_____  (3) Purchaser has received Seller's affidavit that Seller requested information from the Association concerning its financial condition as may be required by state law, and that the Association did not provide a Certificate or information required in the Certificate. Purchaser and Seller agree to waive the requirement to furnish the Certificate.

3. SALES PRICE:

A. Cash portion of Sales Price payable by Purchaser at closing ..............        $___________________

B. Sum of all financing described below (excluding any loan funding

     fee or mortgage insurance premium)....................................................       $___________________

C. Sales Price (Sum of A and B) ...............................................................       $___________________

4. FINANCING: The portion of Sales Price not payable in cash will be paid as follows:

[Check applicable items below:]

_____  A. THIRD PARTY FINANCING: One or more third party mortgage loans in the total amount of $___________________. If the Property does not satisfy the lenders' underwriting requirements for the loan(s), this contract will terminate and the earnest money will be refunded to Purchaser. 

            [Check one item only:]

            _____ (1) This contract is subject to Purchaser being approved for the financing described in the attached Third Party Financing Condition Addendum.

            _____ (2) This contract is not subject to Purchaser being approved for financing and does not involve FHA or VA financing.

_____  B. ASSUMPTION: The assumption of the unpaid principal balance of one or more promissory notes described in the attached Loan Assumption Addendum.

_____  C. SELLER FINANCING: A promissory note from Purchaser to Seller of $___________________ bearing _______% interest per annum, secured by [choose the appropriate instrument authorized within the state:]  _____ mortgage, or  _____ vendor's and deed of trust liens, and containing the terms and conditions described in the attached Seller Financing Addendum. If an owner policy of title insurance is furnished, Purchaser shall furnish Seller with a mortgagee policy of title insurance.

5. EARNEST MONEY: Upon execution of this contract by both parties, Purchaser shall deposit $___________________ as earnest money with ___________________________________________________, as escrow agent, at __________________________________________________________________(address). Purchaser shall deposit additional earnest money of $___________________ with escrow agent within ____________ days after the effective date of this contract. If Purchaser fails to deposit the earnest money as required by this contract, Purchaser will be in default.

6. TITLE POLICY:

A. TITLE POLICY: Seller shall furnish to Purchaser at [check one:]  _____Seller’s  _____Purchaser’s expense an owner policy of title insurance (Title Policy) issued by: _______________________________________________ (Title Company) in the amount of the Sales Price, dated at or after closing, insuring Purchaser against loss under the provisions of the Title Policy, subject to the promulgated exclusions (including existing building and zoning ordinances) and the following exceptions:

(1) Restrictive covenants common to the platted subdivision in which the Property is located.

(2) The standard printed exception for standby fees, taxes and assessments.

(3) Liens created as part of the financing described in Paragraph 4.

(4) Terms and provisions of the Documents including the assessments and platted easements.

(5) Reservations or exceptions otherwise permitted by this contract or as may be approved by Purchaser in writing.

(6) The standard printed exception as to marital rights.

(7) The standard printed exception as to waters, tidelands, beaches, streams, and related matters.

(8) The standard printed exception as to discrepancies, conflicts, shortages in area or boundary lines, encroachments or protrusions, or overlapping improvements.

B. COMMITMENT: Within 20 days after the Title Company receives a copy of this contract, Seller shall furnish to Purchaser a commitment for title insurance (Commitment) and, at Purchaser's expense, legible copies of restrictive covenants and documents evidencing exceptions in the Commitment (Exception Documents) other than the standard printed exceptions. Seller authorizes the Title Company to mail or hand deliver the Commitment and Exception Documents to Purchaser at Purchaser's address shown in Paragraph 21. If the Commitment and Exception Documents are not delivered to Purchaser within the specified time, the time for delivery will be automatically extended up to 15 days or the Closing Date, whichever is earlier.

C. OBJECTIONS: Within __________ days after Purchaser receives the Commitment and Exception Documents, Purchaser may object in writing to defects, exceptions, or encumbrances to title: disclosed in the Commitment other than items 6A(1) through (8) above; or which prohibit the following use or activity: _________________________________________________________________________________________.

Purchaser's failure to object within the time allowed will constitute a waiver of Purchaser’s right to object; except that the requirements in Schedule C of the Commitment are not waived. Seller shall cure the timely objections of Purchaser or any third party lender within 15 days after Seller receives the objections and the Closing Date will be extended as necessary. If objections are not cured within such 15 day period, this contract will terminate and the earnest money will be refunded to Purchaser unless Purchaser waives the objections.

D. TITLE NOTICES:

(1) ABSTRACT OR TITLE POLICY: Broker advises Purchaser to have an abstract of title covering the Property examined by an attorney of Purchaser’s selection, or Purchaser should be furnished with or obtain a Title Policy. If a Title Policy is furnished, the Commitment should be promptly reviewed by an attorney of Purchaser’s choice due to the time limitations on Purchaser’s right to object.

(2) STATUTORY TAX DISTRICTS: If the Property is situated in a utility or other statutorily created district providing water, sewer, drainage, or flood control facilities and services, state law may require Seller to deliver and Purchaser to sign the statutory notice relating to the tax rate, bonded indebtedness, or standby fee of the district prior to final execution of this contract. (Consult with an attorney if you are unclear on this requirement.)

(3) TIDE WATERS: If the Property abuts the tidally influenced waters of the state, state law may require a notice regarding coastal area property to be included in the contract. An addendum containing the notice promulgated by the state or required by the parties must be used. (Consult with an attorney if you are unclear on this requirement.)

(4) ANNEXATION: If the Property is located outside the limits of a municipality, Seller notifies Purchaser that the Property may now or later be included in the extraterritorial jurisdiction of a municipality and may now or later be subject to annexation by the municipality. Each municipality maintains a map that depicts its boundaries and extraterritorial jurisdiction. To determine if the Property is located within a municipality’s extraterritorial jurisdiction or is likely to be located within a municipality’s extraterritorial jurisdiction, contact all municipalities located in the general proximity of the Property for further information.

7. PROPERTY CONDITION:

A. INSPECTIONS, ACCESS AND UTILITIES: Purchaser may have the Property inspected by inspectors selected by Purchaser and licensed by the state or otherwise permitted by law to make inspections. Seller shall permit Purchaser and Purchaser’s agents access to the Property at reasonable times. Seller shall pay for turning on existing utilities for inspections.

B. SELLER'S DISCLOSURE (Notice):

[Check one item only:]

_____  (1) Purchaser has received the Notice.

_____  (2) Purchaser has not received the Notice. Within ______ days after the effective date of this contract, Seller shall deliver the Notice to Purchaser. If Purchaser does not receive the Notice, Purchaser may terminate this contract at any time prior to the closing and the earnest money will be refunded to Purchaser. If Seller delivers the Notice, Purchaser may terminate this contract for any reason within 7 days after Purchaser receives the Notice or prior to the closing, whichever first occurs, and the earnest money will be refunded to Purchaser.

_____  (3) State law does not require this Seller to furnish such Notice.

C. SELLER’S DISCLOSURE OF LEAD-BASED PAINT AND LEAD-BASED PAINT HAZARDS is required by Federal law for a residential dwelling constructed prior to 1978.

D. ACCEPTANCE OF PROPERTY CONDITION: Purchaser accepts the Property in its present condition; provided Seller, at Seller’s expense, shall complete the following specific repairs and treatments: .

E. LENDER REQUIRED REPAIRS AND TREATMENTS: Unless otherwise agreed in writing, neither party is obligated to pay for lender required repairs, which includes treatment for wood destroying insects. If the parties do not agree to pay for the lender required repairs or treatments, this contract will terminate and the earnest money will be refunded to Purchaser. If the cost of lender required repairs and treatments exceeds 5% of the Sales Price, Purchaser may terminate this contract and the earnest money will be refunded to Purchaser.

F. COMPLETION OF REPAIRS AND TREATMENTS: Unless otherwise agreed in writing, Seller shall complete all agreed repairs and treatments prior to the Closing Date. All required permits must be obtained, and repairs and treatments must be performed by persons who are licensed or otherwise authorized by law to provide such repairs or treatments. At Purchaser’s election, any transferable warranties received by Seller with respect to the repairs and treatments will be transferred to Purchaser at Purchaser’s expense. If Seller fails to complete any agreed repairs and treatments prior to the Closing Date, Purchaser may do so and receive reimbursement from Seller at closing. The Closing Date will be extended up to 15 days, if necessary, to complete repairs and treatments.

G. ENVIRONMENTAL MATTERS: Purchaser is advised that the presence of wetlands, toxic substances, including asbestos and wastes or other environmental hazards or the presence of a threatened or endangered species or its habitat may affect Purchaser’s intended use of the Property. If Purchaser is concerned about these matters, an addendum promulgated by the state or required by the parties should be used.

H. RESIDENTIAL SERVICE CONTRACTS: Purchaser may purchase a residential service contract from from a residential service company licensed by the state. If Purchaser purchases a residential service contract, Seller shall reimburse Purchaser at closing for the cost of the residential service contract in an amount not exceeding $________________. Purchaser should review any residential service contract for the scope of coverage, exclusions and limitations. The purchase of a residential service contract is optional. Similar coverage may be purchased from various companies authorized to do business in the state.

8. BROKERS' FEES: All obligations of the parties for payment of brokers’ fees are contained in separate written agreements.

9. CLOSING:

A. The closing of the sale will be on or before ___________________, 20____, or within 7 days after objections to matters disclosed in the Commitment have been cured, whichever date is later (Closing Date). If either party fails to close the sale by the Closing Date, the nondefaulting party may exercise the remedies contained in Paragraph 15.

B. At closing:

(1) Seller shall execute and deliver a general warranty deed conveying title to the Property to Purchaser and showing no additional exceptions to those permitted in Paragraph 6 and furnish tax statements or certificates showing no delinquent taxes on the Property.

(2) Purchaser shall pay the Sales Price in good funds acceptable to the escrow agent.

(3) Seller and Purchaser shall execute and deliver any notices, statements, certificates, affidavits, releases, loan documents and other documents required of them by this contract, the Commitment or law necessary for the closing of the sale and the issuance of the Title Policy.

C. Unless expressly prohibited by written agreement, Seller may continue to show the Property and receive, negotiate and accept back up offers.

D. All covenants, representations and warranties in this contract survive closing.

10. POSSESSION: Seller shall deliver to Purchaser possession of the Property in its present or required condition, ordinary wear and tear excepted: [check one:]  _____upon closing and funding   _____according to a temporary residential lease form promulgated by the state or other written lease required by the parties. Any possession by Purchaser prior to closing or by Seller after closing which is not authorized by a written lease will establish a tenancy at sufferance relationship between the parties. Consult your insurance agent prior to change of ownership or possession because insurance coverage may be limited or terminated. The absence of a written lease or appropriate insurance coverage may expose the parties to economic loss.

11. SPECIAL PROVISIONS: [Insert only factual statements and business details applicable to the sale. State regulations may prohibit licensees from adding factual statements or business details for which a contract addendum or other form has been promulgated by the state for mandatory use.]
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________
________________________________________________________________________________________

12. SETTLEMENT AND OTHER EXPENSES:

A. The following expenses must be paid at or prior to closing:

(1) Expenses payable by Seller (Seller's Expenses):

(a) Releases of existing liens, including prepayment penalties and recording fees; lender, FHA, or VA completion requirements; tax statements or certificates; preparation of deed; one-half of escrow fee; and other expenses payable by Seller under this contract.

(b) Seller shall also pay an amount not to exceed $________________ to be applied in the following order: Purchaser’s Expenses which Purchaser is prohibited from paying by FHA, VA, state-coordinated veteran’s housing assistance programs, or other governmental loan programs; Purchaser’s prepaid items; other Purchaser’s expenses.

(2) Expenses payable by Purchaser (Purchaser's Expenses):

(a) Loan origination, discount, buy-down, and commitment fees (Loan Fees).

(b) Appraisal fees; loan application fees; credit reports; preparation of loan documents; interest on the notes from date of disbursement to one month prior to dates of first monthly payments; recording fees; copies of easements and restrictions; mortgagee title policy with endorsements required by lender; loan-related inspection fees; photos, amortization schedules, one-half of escrow fee; all prepaid items, including required premiums for flood and hazard insurance, reserve deposits for insurance, ad valorem taxes and special governmental assessments; final compliance inspection; courier fee, repair inspection, underwriting fee and wire transfer, expenses incident to any loan, and other expenses payable by Purchaser under this contract.

(3) Transfer Expenses: Any Association transfer or processing fee will be paid by: [check one:]  _____Seller _____Purchaser.

B. Purchaser shall pay Private Mortgage Insurance Premium (PMI), VA Loan Funding Fee, or FHA Mortgage Insurance Premium (MIP) as required by the lender.

C. If any expense exceeds an amount expressly stated in this contract for such expense to be paid by a party, that party may terminate this contract unless the other party agrees to pay such excess. Purchaser may not pay charges and fees expressly prohibited by FHA, VA, state-coordinated veteran’s housing assistance programs or other governmental loan program regulations.

13. PRORATIONS: Taxes for the current year, interest, maintenance fees, regular condominium assessments, dues and rents will be prorated through the Closing Date. If taxes for the current year vary from the amount prorated at closing, the parties shall adjust the prorations when tax statements for the current year are available. If taxes are not paid at or prior to closing, Purchaser shall pay taxes for the current year. Cash reserves from regular condominium assessments for deferred maintenance or capital improvements established by the Association will not be credited to Seller. Any special condominium assessment due and unpaid at closing will be the obligation of Seller.

14. CASUALTY LOSS: If any part of the Unit which Seller is solely obligated to maintain and repair under the terms of the Declaration is damaged or destroyed by fire or other casualty, Seller shall restore the same to its previous condition as soon as reasonably possible, but in any event by the Closing Date. If Seller fails to do so due to factors beyond Seller’s control, Purchaser may (a) terminate this contract and the earnest money will be refunded to Purchaser, (b) extend the time for performance up to 15 days and the Closing Date will be extended as necessary or (c) accept the Property in its damaged condition with an assignment of insurance proceeds and receive credit from Seller at closing in the amount of the deductible under the insurance policy. If any part of the Common Elements or Limited Common Elements appurtenant to the Unit is damaged or destroyed by fire or other casualty loss, Purchaser will have 7 days from receipt of notice of such casualty loss within which to notify Seller in writing that the contract will be terminated unless Purchaser receives written confirmation from the Association that the damaged condition will be restored to its previous condition within a reasonable time at no cost to Purchaser. Unless Purchaser gives such notice within such time, Purchaser will be deemed to have accepted the Property without confirmation of such restoration. Seller will have 7 days from the date of receipt of Purchaser’s notice within which to cause to be delivered to Purchaser such confirmation. If required by Purchaser and written confirmation is not delivered to Purchaser as required above, Purchaser may terminate this contract and the earnest money will be refunded to Purchaser. Seller’s obligations under this paragraph are independent of any obligations of Seller under Paragraph 7.

15. DEFAULT: If Purchaser fails to comply with this contract, Purchaser will be in default, and Seller may (a) enforce specific performance, seek such other relief as may be provided by law, or both, or (b) terminate this contract and receive the earnest money as liquidated damages, thereby releasing both parties from this contract. If, due to factors beyond Seller’s control, Seller fails within the time allowed to make any non-casualty repairs or deliver the Commitment, if required of Seller, Purchaser may (a) extend the time for performance up to 15 days and the Closing Date will be extended as necessary or (b) terminate this contract as the sole remedy and receive the earnest money. If Seller fails to comply with this contract for any other reason, Seller will be in default and Purchaser may (a) enforce specific performance, seek such other relief as may be provided by law, or both, or (b) terminate this contract and receive the earnest money, thereby releasing both parties from this contract.

16. MEDIATION: Any dispute between Seller and Purchaser related to this contract which is not resolved through informal discussion  [check one:]  _____will  _____will not  be submitted to a mutually acceptable mediation service or provider. The parties to the mediation shall bear the mediation costs equally. This paragraph does not preclude a party from seeking equitable relief from a court of competent jurisdiction.

17. ATTORNEY'S FEES: The prevailing party in any legal proceeding related to this contract is entitled to recover reasonable attorney’s fees and all costs of such proceeding incurred by the prevailing party.

18. ESCROW: The escrow agent is not (a) a party to this contract and does not have liability for the performance or nonperformance of any party to this contract, (b) liable for interest on the earnest money and (c) liable for the loss of any earnest money caused by the failure of any financial institution in which the earnest money has been deposited unless the financial institution is acting as escrow agent. At closing, the earnest money must be applied first to any cash down payment, then to Purchaser's Expenses and any excess refunded to Purchaser. If both parties make written demand for the earnest money, escrow agent may require payment of unpaid expenses incurred on behalf of the parties and a written release of liability of escrow agent from all parties. If one party makes written demand for the earnest money, escrow agent shall give notice of the demand by providing to the other party a copy of the demand. If escrow agent does not receive written objection to the demand from the other party within 30 days after notice to the other party, escrow agent may disburse the earnest money to the party making demand reduced by the amount of unpaid expenses incurred on behalf of the party receiving the earnest money and escrow agent may pay the same to the creditors. If escrow agent complies with the provisions of this paragraph, each party hereby releases escrow agent from all adverse claims related to the disbursal of the earnest money. Escrow agent's notice to the other party will be effective when deposited in the U. S. Mail, postage prepaid, certified mail, return receipt requested, addressed to the other party at such party's address shown below. Notice of objection to the demand will be deemed effective upon receipt by escrow agent.

19. REPRESENTATIONS: Seller represents that as of the Closing Date (a) there will be no liens, assessments, or security interests against the Property which will not be satisfied out of the sales proceeds unless securing payment of any loans assumed by Purchaser, (b) assumed loans will not be in default, and (c) Seller has no knowledge of any misrepresentation or errors in the Certificate or any material changes in the information contained therein. If any representation of Seller in this contract or the Certificate is untrue on the Closing Date, Purchaser may terminate this contract and the earnest money will be refunded to Purchaser.

20. FEDERAL TAX REQUIREMENTS: If Seller is a "foreign person,” as defined by applicable law, or if Seller fails to deliver an affidavit to Purchaser that Seller is not a "foreign person,” then Purchaser shall withhold from the sales proceeds an amount sufficient to comply with applicable tax law and deliver the same to the Internal Revenue Service together with appropriate tax forms. Internal Revenue Service regulations require filing written reports if currency in excess of specified amounts is received in the transaction.

21. NOTICES: All notices from one party to the other must be in writing and are effective when mailed to, hand-delivered at, or transmitted by facsimile as follows:

To Purchaser at:                                                         To Seller at:

____________________________________                        ____________________________________
____________________________________                        ____________________________________

____________________________________                        ____________________________________

Telephone: (_____) ____________________             Telephone: (_____) ____________________

Facsimile:   (_____) ____________________             Facsimile:   (_____) ____________________

22. AGREEMENT OF PARTIES: This contract contains the entire agreement of the parties and cannot be changed except by their written agreement. Addenda which are a part of this contract are (check all applicable boxes):

23. TERMINATION OPTION: This paragraph will be a part of this contract ONLY if both blanks are filled in and Purchaser has paid the Option Fee. Purchaser has paid Seller $________________ (Option Fee) for the unrestricted right to terminate this contract by giving notice of termination to Seller within __________ days after the effective date of this contract. If Purchaser gives notice of termination within the time specified, the Option Fee will not be refunded, however, any earnest money will be refunded to Purchaser. The Option Fee  [check one:]  _____will  _____will not  be credited to the Sales Price at closing. For the purposes of this paragraph, time is of the essence; strict compliance with the time for performance stated herein is required.

_____ Third Party Financing Condition Addendum

_____ Seller Financing Addendum

_____ Loan Assumption Addendum

_____ Purchaser’s Temporary Residential Lease

_____ Seller's Temporary Residential Lease

_____ Addendum for Sale of Other Property by Purchaser

_____ Addendum for Seller's Disclosure of Information on Lead-based Paint and Leadbased Paint Hazards as Required by Federal Law

_____ Environmental Assessment, Threatened or Endangered Species and Wetlands Addendum

_____ Addendum for Coastal Area Property

_____ Addendum for Property Located Seaward of the Gulf Intracoastal Waterway

_____ Addendum for "Back-Up" Contract

_____ Addendum for Release of Liability on Assumption of FHA, VA, or Conventional Loan Restoration of Seller’s Entitlement for VA Guaranteed Loan

_____ Other (list):

________________________________________________________________________________________

________________________________________________________________________________________

24. CONSULT AN ATTORNEY: Real estate licensees cannot give legal advice. READ THIS CONTRACT CAREFULLY. If you do not understand the effect of this contract, consult an attorney BEFORE signing.

Purchaser’s Attorney is:                                            Seller’s Attorney is:

____________________________________                        ____________________________________
____________________________________                        ____________________________________

____________________________________                        ____________________________________

Telephone: (_____) ____________________             Telephone: (_____) ____________________

Facsimile:   (_____) ____________________             Facsimile:   (_____) ____________________

EXECUTED the _______ day of _________________, 20_____ (EFFECTIVE DATE).

____________________________________            ____________________________________
Purchaser                                                                    Seller

____________________________________            ____________________________________
Purchaser                                                                    Seller

SELLER’S RECEIPT:

Receipt of $___________________ (Option Fee) in the form of ___________________  is acknowledged.

____________________________________            ____________________
Seller                                                                           Date