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RESIDENTIAL REAL ESTATE PURCHASE AGREEMENT
Date of Prepared Agreement___________________________________20______
TO ___________________________________________________________________________________________________________ (SELLERS)
1. REAL ESTATE DESCRIPTION. The undersigned BUYERS hereby offer to purchase and the undersigned SELLERS by their acceptance agree
to sell the real property situated in _______________________ County, Iowa, locally known as::
________________________________________________________________________________ and legally described in the title document as:
___________________________________________________________________________________________________________________
together with any easements and appurtenant servient estates, but subject to any reasonable easements of record for public utilities or roads, any
zoning restrictions, customary restrictions, customary restrictive covenants and mineral reservations of record, if any, herein referred to as the
"Property," upon the following terms and conditions provided BUYERS, on possession, are permitted to use the Property for residential purposes.
❑If applicable, see HOMEOWNERS ASSOCIATION/CONDOMINIUM ASSOCIATION/COMMON INTEREST COMMUNITY ADDENDUM (HOA).
2. PURCHASE PRICE. The Purchase Price shall be $___________________________ and the method of payment shall be as follows:
$________________________ with this offer as earnest money to be deposited upon acceptance of this offer; made payable to and held in trust by
______________________________________________. In the event this Purchase Agreement is not acceptable to both BUYERS and SELLERS
or all contingencies or sub-contingencies are not met in a timely manner as specified below, then said earnest money is to be returned to BUYERS.
The balance of the purchase price shall be paid as indicated below.
Select below all that apply, (A) through (E).
A.
❑ NEW MORTGAGE: ❑ (CONV) ❑ (FHA) ❑ (VA) ❑ (Other) _________________________.
This Purchase Agreement is contingent upon the BUYERS obtaining a written commitment for a first real estate mortgage for ____ % of
the purchase price with interest on the promissory note secured thereby of not more than _____ % amortized over a term of not less than
_____ years. BUYERS agree to pay all customary loan costs. BUYERS agree upon acceptance of this offer to make application within
three (3) business days for such mortgage with a commercial mortgage lender and to exercise good faith efforts to obtain a mortgage
commitment as above provided. Upon receiving written loan commitment, (supported by the lender's required appraisal), BUYERS shall
release this contingency in writing. If BUYERS have not delivered a written financing contingency release containing the above terms, or
terms acceptable to SELLERS on or before______________________________, 20_______, at ________ (
❑A.M. ❑P.M.) either
SELLERS or BUYERS may declare this Purchase Agreement null and void and all payments made hereunder shall be returned. BUYERS
shall pay the balance of the purchase price at the time of the closing by combination of BUYERS' personal funds and the net mortgage
proceeds.
❑ BUYERS have credit approval from ________________________________ (lender), ______________________________ (loan officer)
subject to the
terms and conditions of the attached approval letter. Copy of Approval is attached.
B.
❑ CASH: BUYERS will pay the balance of the purchase price in cash at the time of closing. This Purchase Agreement is not contingent upon
BUYERS obtaining such funds. BUYERS also agree to provide, within three (3) business days, verifiable evidence of the availability of the
funds needed to purchase and close.
C.
❑ CONTRACT FOR DEED. BUYER will assume SELLERS’ loan or contract. See attached addendum.
D.
❑ OTHER FINANCING TERMS: _____________________________________________________________________________________
________________________________________________________________________________________________________________
E. SALE OF BUYERS’ PROPERTY:
❑ This Agreement is contingent upon the sale and settlement of the BUYERS’ property locally known as
_____________________________________________________________________ on or before ______________________, 20____.
If settlement has not been made by this date, the SELLERS may rescind this Agreement by giving notice to BUYERS that unless sale and
settlement of BUYERS’ property is made within five (5) business days of such notice, then this Agreement shall be null and void. Unless
SELLERS give such written notice, this Agreement shall remain valid until the sale of BUYERS’ property.
1. SELLERS reserve the right to continue to offer the Property for sale. Should SELLERS receive another offer which they desire to accept,
BUYERS shall have _________ hours from the delivery of written notice to waive the “contingency of sale.” Notice from the BUYERS to
the SELLERS, removing the contingency of sale, shall be timely delivered to the SELLERS along with written verification of BUYERS’
financial ability to complete the purchase without the sale of the property referenced above.
2. If BUYERS do timely remove such contingency, this Agreement will remain in full force and effect (but without being contingent on the sale
of BUYERS’ property). If BUYERS do not timely remove such contingency, SELLERS will immediately return to BUYERS all earnest
money paid, this Agreement will be of no further force and effect, and neither party will have any further obligation to the other hereunder.
3. CLOSING. Closing shall be on _____________________________, 20______ or sooner by mutual agreement.
Buyers’ Initials ________ ________ Date ________
Sellers’ Initials ________ ________ Date ________ Acknowledge they have read this page Revision Date: 1/16
4. POSSESSION. If BUYERS timely perform all obligations, possession for the Property shall be delivered to BUYERS as follows:
A.
❑ At the time of closing.
B.
❑ On _____________________________, 20______, at ________ (❑A.M. ❑P.M.)
If for any reason the closing is delayed, the BUYERS and SELLERS may make a separate agreement with adjustments as to the date of possession
in the form of an amendment or interim occupancy agreement. Any unpaid balance, rents, interest or insurance for these purposes, shall be
adjusted as of the date of possession and shall bear interest at the rate of _______% per annum.
5. REAL ESTATE TAXES. The SELLERS shall be responsible for all real estate taxes that are attributable to the SELLER’S ownership of the
property which shall include taxes that are liens for prior years and taxes that are due and payable for the fiscal year in which the closing occurs.
Subsequent taxes shall be provided for by one of the following methods:
A.
❑ BUYERS shall be given a credit for all subsequent taxes prorated to the date of the closing. Subsequent taxes shall be calculated using
the latest known applicable assessed value(s), roll back(s), exemption(s) and levy of record at the time of closing.
B.
❑ There shall be no proration of subsequent taxes.
6. SPECIAL ASSESSMENTS. SELLERS shall pay in full all Special Assessments and all certified liens of record as of the date of closing. All
Association fees, if any, shall also be paid currently by the SELLERS to date of closing. Any preliminary or deficiency assessments which cannot be
discharged by payment at closing shall be paid through a written escrow account with sufficient funds to pay such liens when payable, with any
unused funds to be returned to the SELLERS without further signatures of the BUYERS. All charges for solid waste, trash removal, sewage, utility
bills and assessments for maintenance that are attributable to the SELLERS ownership shall be paid by the SELLERS.
7. FIXTURES. All property t
hat integrally belongs to or is part of the Property, whether attached or detached, such as light fixtures, shades, rods,
blinds, automatic garage door openers and transmitter units, all drapery rods and curtain rods, awnings, windows, storm doors, screens, plumbing
fixtures, water heaters, water softeners (unless water softener is rental), automatic heating equipment, air conditioning equipment, wall-to-wall
carpeting, mirrors attached to walls or doors, fireplace screen and grate, attached barbecue grills, weather vane, all built-in kitchen appliances,
built-in items and electrical service cable, outside television towers and antenna, fencing, gates and landscaping shall be considered a part of
Property and also including the following: __________________________________________________________________________________
___________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________
Each of the above incl
uded items are fixtures that integrally belong to or is a part of the Property. In the event any of the above items are
characterized as personal property, such personal property items are not considered a part of the Property and shall be transferred with no
monetary value, free and clear of all liens and encumbrances.
The following items shall be excluded: _________________________________________________________________________________
8. DEED. Upon payment of the purchase price, SELLERS shall convey the Property to BUYERS or their assignees, by _______________________.
Deed, free and clear of all liens, restrictions, and encumbrances except as provided in this Agreement. Any general warranties of title shall extend
only to the time of acceptance of this offer, with special warranties as to acts of SELLERS continuing up to time of delivery of the deed.
9. TIME IS OF THE ESSENCE. Time is of the essence in this Purchase Agreement.
10. CONDITION OF PROPERTY.
A. The Property as of the date of this Purchase Agreement including buildings, grounds, and all improvements will be preserved by the
SELLERS in its present condition until possession, ordinary wear and tear excepted. The SELLERS warrant that the heating, electrical,
plumbing, and air conditioning systems, well (if applicable) and all included appliances will whether subject to inspection set forth hereinafter
or not, be in good working order and condition as of the date of delivery of possession. In determining whether or not the warranted systems
are in good working condition and, for the purpose of inspecting the Property as outlined in Paragraph 10C (1) of this Purchase Agreement,
working condition shall be defined as operating in a manner in which the item was designed to operate.
B. HOME WARRANTY: A home wa
rranty insurance policy with a duration of ________ year(s) is to be ordered and paid for by:
❑
SELLERS
❑
BUYERS
❑
N/A
❑
See OTHER PROVISIONS in Paragraph 25.
C. HOME INSPECTION: The BUYERS must choose one of the following alternatives relative to the condition and quality of the Property:
1)
❑
By___________
(❑A.M. ❑P.M.) on_________________________, 20__ , the BUYERS may, at their sole expense, have the
Property inspected by a person or persons of their choice, including but not limited to a qualified home inspector, contractor(s),
engineer(s), or other such professional(s), to determine if there are major deficiencies in the FOLLOWING MAJOR COMPONENTS of
the Property: central heating system, central cooling system, plumbing system, well and well water (if applicable), electrical system,
roof, walls, ceilings, floors, foundation and basement. SELLERS and BUYERS acknowledge that the property may have imperfect
cosmetic conditions that do not affect the working condition of the item and are not considered major deficiencies, including, but not
limited to, broken seals in windows; minor tears, worn spots, or discoloration of floor coverings, wallpaper, or window treatments; nail
holes, scratches, dents, scrapes, or chips in ceilings, walls, floors; and/or surface cracks in driveways or patios. Failure to meet present
construction standards and code requirements is not considered a deficiency in the Property unless it is new construction, or unless
that failure produces a condition which creates an unreasonable danger or risk to the Property or to its occupants.
Buyers’ Initials ________ ________ Date ________
Sellers’ Initials ________ ________ Date ________ Acknowledge they have read this page Revision Date: 1/16
RESPONSE TO HOME INSPECTION FINDINGS: By the same date indicated in this Section 10C(1), BUYERS must notify the
SELLERS in writing of any MAJOR deficiencies for which they are requesting remedies. The notification must be accompanied by a
copy of a written inspection report from a qualified inspector identifying the deficiencies. SELLERS shall, within FIVE (5) calendar days
after receipt of BUYERS' notification, notify the BUYERS in writing either that (1) SELLERS agree to remedy the deficiencies as
requested by BUYERS, in which case this Purchase Agreement as so modified shall be binding on all parties, or (2) SELLERS do not
agree to the remedy request in whole or in part and offer a counter proposal to BUYERS. Upon receipt of said counter proposal from
SELLERS, the BUYERS shall have FIVE (5) days in which to accept the SELLERS' counter proposal by signing it, or to notify the
SELLERS in writing that such steps are not acceptable, in which case, either SELLERS or BUYERS may declare this offer null and
void, and any earnest money shall be returned to BUYERS. IN THE ABSENCE OF WRITTEN NOTICE OF ANY DEFICIENCY FROM
BUYERS, OR, IF BUYERS FAIL TO RESPOND TO THE SELLERS COUNTER PROPOSAL, WITHIN THE TIME SPECIFIED HEREIN,
THIS PROVISION SHALL BE DEEMED WAIVED BY PARTIES AND THI
S PURCHASE AGREEMENT SHALL REMAIN IN FULL
FORCE AND EFFECT. IF THE SELLERS FAIL TO RESPOND TO THE BUYERS' REMEDY REQUEST WITHIN THE TIME SPECIFIED
HEREIN, BUYERS MAY DECLARE THE OFFER NULL AND VOID AND ALL EARNEST MONEY SHALL BE RETURNED.
2)
❑
________ BUYERS acknowledge that they have been advised of their right of property inspection and have declined to make said
Initials
inspection.
D. RADON INSPECTION: The BUYERS must choos
e one of the following alternatives relative to the presence of radon in the home:
1)
❑
By _______
(❑A.M. ❑P.M.) on________________________, 20_______, the Buyers may, at their sole expense, have the Property
tested for the presence of radon gas. Such test shall be conducted by an Iowa Certified Radon Specialist. SELLER agrees to sign
documents required for the test to be completed and agrees to cooperate with the specialist in carrying out the test. By the same date,
BUYERS must notify SELLER in writing of any radon in excess of _____ pCI/L. The notification shall be accompanied by a copy of the
written radon report. The cost of mitigation, if necessary, shall be negotiated within the time frames and remedies in paragraph 10C(1).
2)
❑
________ BUYERS acknowledge that they have been advised of their right to conduct a radon test and have declined to order
Initials
said test.
E. TERMITE INSPECTION: The BUYERS must choose one of the following alternatives relative to wood destroying insects:
1)
❑
By _______
(❑A.M. ❑P.M.) on_________________________, 20_______, BUYERS may, at BUYERS' expense, have the Property
inspected for termites or other wood destroying insects by a licensed Pest Inspector. If active infestation or damage due to prior infestation
is discovered, SELLERS shall have the option of either having the Property treated for infestation by a licensed Pest Exterminator and
having any damage repaired to the BUYERS' satisfaction, or declaring this Purchase Agreement void. This provision shall not apply to
fences, trees, shrubs, or out buildings other than garages. BUYERS may accept the Property in its existing condition without such
treatment or repairs. IF BUYERS ARE OBTAINING VA FINANCING, THEN THE COST OF THE TERMITE INSPECTION SHALL BE
BORNE BY THE SELLERS.
2)
❑
________
BUYERS acknowledge that they have been advised of their right of a pest inspection and have declined to make said
Initials
unless required by lending institution at which time said inspection would be at BUYERS' expense and the BUYER will
have the same rights as under paragraph 9E(1) if active infestation or damage due to prior infestation is discovered.
F. SEPTIC SYSTEM INSPECTION: The BUYERS must choose one of the following alternatives relative to a septic system inspection:
1)
❑
SELLERS represent and warrant to BUYERS that the Property is not served by a private sewage disposal system, and there are no
known private sewage disposal systems on the Property.
2)
❑
The Property is served by a private sewage disposal system, or there is a private sewage disposal system on the Property. SELLERS
and BUYERS agree to the provision selected in the attached Addendum for Inspection of Private Sewage Disposal System.
3)
❑
SELLERS and BUYERS agree that this transaction IS exempt from the time of transfer inspection requirements by reason that
_____________________________________________________________________________________________________.
G. WELL TEST: The BUYERS must choose one of the following alternatives relative to a well test:
1)
❑
SELLERS represent and warrant to BUYERS that the Property is not served by a well, and there are no known wells on the Property.
2)
❑
SELLERS, at SELLERS’ expense, shall provide BUYERS, within _______ days after acceptance of this offer, a report issued by the
county health department, or a qualified testing service, indicating the location of any well on the Property and that water from each well
(1) is safe for its intended use and (2) is in sufficient quantity for its intended use. If BUYERS receive an unsatisfactory report, the basis
for which cannot be resolved between BUYERS and SELLERS within _______ days of receipt thereof, then upon written notice from
BUYERS to SELLERS, this agreement shall be null and void and all earnest money paid shall be returned to BUYERS.
H. The BUYERS shall be permitted access to the Property prior to possession or closing, whichever is sooner, in order to determine that there
have been no changes in the condition of the Property except those mutually agreed upon and that it is ready for BUYERS' possession. At the
time of closing or possession, whichever occurs sooner, BUYERS will accept Property in its present condition without further warranties or
guarantees by SELLERS concerning the condition of the Property. This, however, shall not relieve the SELLERS of any liability for any
condition(s) that is (are) defined as latent defect(s) or any express written warranties contained in this Purchase Agreement or other written
agreement between the parties; nor shall this paragraph relieve the Sellers of any liability for any implied warranty applicable under Iowa law."
Buyers’ Initials ________ ________ Date ________
Sellers’ Initials ________ ________ Date ________ Acknowledge they have read this page Revision Date: 1/16
11. INSURANCE. SELLERS shall bear the risk of loss or damage to the Property prior to closing or possession, whichever first occurs. SELLERS
agree to maintain existing insurance and BUYERS may purchase additional insurance. In the event of substantial damage or destruction prior to
closing, this Purchase Agreement shall be null and void, unless otherwise agreed by the parties. The Property shall be deemed substantially
damaged or destroyed if it cannot be restored to its present condition on or before the closing date; provided, however, BUYERS shall have the
option to complete the closing and receive insurance proceeds regardless of the extent of damages.
12. USE OF PURCHASE PRICE. At time of settlement, funds of the purchase price may be used to pay taxes and other liens and to acquire
outstanding interests, if any, of others.
13. ABSTRACT AND TITLE. SELLERS, at their expense, shall promptly obtain an abstract of title to the Property continued through the date of
acceptance of this offer, and deliver it to BUYERS for examination. It shall show merchantable title in SELLERS' names in conformity with this
Purchase Agreement, Iowa law, and Title Standards of the Iowa State Bar Association. The abstract shall become the property of the BUYERS
when the purchase price is paid in full. SELLERS shall pay the costs of any additional abstracting and title work due to any act or omission of
SELLERS, including transfers by or the death of SELLERS or their assignees. If, at the time of closing there remains unresolved title objections,
the parties agree to escrow from the sale proceeds a sufficient amount to protect the BUYERS' interests until said objections are corrected,
allowing a reasonable time for the corrections of said objections; provided, however, that if the commercial mortgage lender of the BUYERS will
not make the mortgage funds available with such escrow, the provisions for escrow for title defects shall not be applicable.
14. JOINT TENANCY IN P
ROCEEDS AND IN REAL ESTATE. If SELLERS, immediately preceding acceptance of the offer, hold title to the Property
in joint tenancy with full right of survivorship, and the joint tenancy is not later destroyed by operation of law or by acts of the SELLERS, then the
proceeds of this sale, and continuing or recaptured rights of SELLERS in the Property, shall belong to SELLERS as joint tenants with full right of
survivorship and not as tenants in common; and BUYERS, in the event of the death of either SELLER, agree to pay any balance of the price due
SELLERS under this Purchase Agreement to the surviving SELLER and to accept a deed from the surviving SELLER consistent with paragraph 8.
BUYERS HEREBY STATE THE DESIRE TO TAKE TITLE IN THE FOLLOWING MANNER:
❑
Joint Tenants ❑
Tenants in Common ❑
As a single Person ❑
Other __________________________________________________.
15. JOINDER BY SELLER'S SPOUSE. SELLER'S spouse, if not a title holder immediately preceding acceptance of this offer, executes this
Purchase Agreement only for the purpose of relinquishing of all rights of dower, homestead and distributive share or in compliance with Section
561.13 of the Iowa Code and agrees to execute the deed or real estate contract for this purpose.
16. REMEDIES OF THE PARTIES.
A. If BUYERS fail to time
ly perform this contract, SELLERS may forfeit it as provided in the Iowa Code, and all payments made shall be
forfeited or, at SELLERS' option, upon Thirty (30) days written notice of intention to accelerate the payment of the entire balance because of
such failure (during which thirty days such failure is not corrected) SELLERS may declare the entire balance immediately due and payable.
Thereafter this contract may be foreclosed in equity and the Court may appoint a receiver.
B. If SELLERS fail to timely perform this contract, BUYERS have the right to have all payments made returned to them.
C. BUYERS and SELLERS also are entitled to utilize any and all other remedies or actions at law or in equity available to them and shall be
entitled to obtain judgment for costs and attorney fees as permitted by law.
17. STATEMENT AS TO LIENS. If BUYERS intend to assume or take subject to a lien on the Property, SELLERS shall furnish BUYERS with a
written statement prior to closing from the holder of such lien, showing the correct balance due.
18. APPROVAL OF COURT. If the Property is an asset of any estate, trust or conservatorship, this Purchase Agreement is contingent upon Court
approval unless declared unnecessary by BUYERS’ attorney. If necessary, the appropriate fiduciary shall promptly obtain Court approval and
conveyance shall be made by a Court Officer’s Deed.
19. CONTRACT BINDING ON SUCCES
SORS IN INTEREST. This contract shall apply to and bind the successors in interest of the parties.
20. CONSTRUCTION. Words and phrases shall be construed as in the singular or plural number, and as masculine, feminine or neuter gender,
according to context.
21. SURVEY AND SQUARE FOOTAGE REPRESENTATION. The BUYERS may, within ______ days of acceptance of offer, have the Property
surveyed at their expense. If the survey, certified by a Registered Land Surveyor, shows any encroachment on said property or if any
improvements located on the subject property encroach on lands of others, such encroachments shall be treated as a title defect. Assuming a
representation for square footage has been made, BUYERS understand and agree that said representation is only an approximation of the exact
number of square feet the Property contains. The BUYERS have the right to obtain their own measurement of square footage.
22. REAL ESTATE AGENT OR BROKER. Select one of the following:
❑ Neither party has used the services of a real estate agent or broker in connection with this transaction. SELLERS agree to indemnify
BUYERS and hold BUYERS harmless from any claim by any real estate agent or broker arising out of or related to this transaction between
SELLERS and BUYERS.
❑ BUYERS were represented by a real estate agent or broker in connection with this transaction.
Buyers’ Initials ________ ________ Date ________
Sellers’ Initials ________ ________ Date ________ Acknowledge they have read this page Revision Date: 1/16
23. RESIDENTIAL PROPERTY SELLER DISCLOSURE STATEMENT. Iowa law requires SELLERS of residential real estate property to deliver to the
BUYER a written disclosure statement to reveal the condition of various important aspects of the property characteristics and structure(s). The Seller
Disclosure statement MUST be delivered to the BUYER either (1) prior to the SELLER accepting a written offer from the BUYER, or (2) prior to the
BUYER accepting a written offer from the SELLER.
❑ The Buyer(s) acknowledge receipt of the Residential Property Seller Disclosure Statement prior to executing this Purchase Agreement.
A copy of the Residential Property Seller Disclosure Statement is attached to the Purchase Agreement.
❑ Not Applicable
24. NOTICE. Any notice required under this Purchase Agreement shall be in writing and shall be deemed effective to BUYERS when physical
delivery is received by BUYERS, and effective to SELLERS when physical delivery is received by SELLERS. Physical delivery may be either by
personal delivery or upon the date of the posting of said notice posted by Certified Mail. As an alternative to physical delivery, any signed
document or written notice may be delivered, as set forth in electronic form by facsimile or e-mail. The facsimile or e-mail delivery confirmation
shall constitute notice of delivery. Documents with original signatures shall be provided.
SELLER Email Address: ________________________________________________
SELLER Mailing Address: _________________________________________
BUYER Email Address: ________________________________________________
BUYER Mailing Address: ____________________________________________
25. OTHER PROVISIONS.
____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________
26. TIME FOR ACCEPTANCE. If this offer is not accepted by SELLERS on this date of ___________________________, 20______,
at__________ (
❑A.M. ❑P.M.) it shall become void and all payments shall be repaid to the BUYERS.
*** THIS IS A LEGAL, BINDING C
ONTRACT. IF NOT UNDERSTOOD, SEEK COMPETENT LEGAL ADVICE ***
The undersigned have read and agreed to the terms and conditions of this Purchase Agreement.
OFFER DATE: __________________________________, 20______, at ___________________ (
❑A.M. ❑P.M.).
_____________________________________________________
BUYER (PRINT)
_____________________________________________________
BUYER (SIGNATURE)
_____________________________________________________
BUYER (PRINT)
_____________________________________________________
BUYER (SIGNATURE)
❑SELLERS’ ACCEPTANCE. The undersigned SELLER(S) of the above property accepts the above offer and agrees to sell this property
according to the terms offered on this date of:
____________________________, 20______, at ____________
(❑A.M. ❑P.M.)
.
❑SELLERS’ REJECTION. The undersigned SELLER(S) of the above property rejects this BUYERS’ written offer to purchase this property
according to the terms offered on this date of:
____________________________, 20______, at ____________
(❑A.M. ❑P.M.)
.
❑SELLERS’ COUNTER OFFER. The undersigned SELLER(S) of the above accepts the above offer subject to the terms and conditions as per
the attached Counter Offer on this date of:
____________________________, 20______, at ___________
(❑A.M. ❑P.M.)
_____________________________________________________
SELLER (PRINT)
_____________________________________________________
SELLER (SIGNATURE)
_____________________________________________________
SELLER (PRINT)
_____________________________________________________
SELLER (SIGNATURE)
SELLER Phone: __________________________________
SELLER Alt. Phone: _______________________________
BUYER Phone: ___________________________________
BUYER Alt. Phone: ________________________________
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Completed 26 February 2021

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