PURCHASER’S INITIALS: ______________ SELLER’S INITIALS: ________
SECTION IV - CONDITIONS OF SALE
1. Closing Date. The closing shall occur on or before , 20__ or such earlier time as both parties shall agree (“Closing Date”). If closing
does not occur by the Closing Date, Purchaser must submit an extension request prior to the Closing Date, which Seller may accept or reject at its sole
discretion; however, if Purchaser fails to submit an extension request prior to the Closing Date or Purchaser refuses or otherwise fails to perform in
accordance with this Contract of Sale, Seller may elect to terminate the Contract of Sale and retain all Earnest Money as liquidated damages and upon notice
by Seller to __________________ (“Escrow Agent”) and Purchaser, Escrow Agent will pay such Earnest Money directly to Seller without Purchaser’s
consent. If Seller accepts the extension request, Seller shall charge a per diem of $_____________ through and including the new closing date specified in
the fully-executed extension. The Purchaser has the right to make an independent selection of their own attorney, settlement company, escrow company, title
company and/or title insurance company in connection with the closing.
2. Title. Purchaser is responsible for payment of any title insurance required or requested and all closing costs. Purchaser is herewith notified that any offer
accepted is subject to delay of closing or cancellation should seller conclude clear title cannot be conveyed. This property is being marketed subject to review
of the title package from foreclosure by Seller. Seller or its’ agent will prepare Deed conveying title from Seller to Purchaser. Title to the Property will be
conveyed by deed that covenants that grantor grants only that title which grantor may have and that grantor will only defend title against persons claiming by,
through or under grantor. Such deed may be known as a Special Warranty, Limited Warranty, Quit Claim or Bargain and Sale Deed or other local form of
Deed acceptable to the recording agent and Seller. Should Purchaser be agreeable, along with lender and Purchaser’s closing agent, to proceed with closing
without Seller’s approval of the full title package, a Quit Claim or Non-Warranty deed will be used.
IMPORTANT NOTICE: SELLER DOES NOT GUARANTEE OR WARRANT THE TITLE TO THE PROPERTY. Seller
recommends that Purchaser obtain title insurance (or a title guarantee).
3. Condition of the Property. The Purchaser understands that the Seller acquired the property by foreclosure, Deed-in-Lieu, forfeiture, tax sale or similar
process. The Seller has limited or no direct knowledge concerning the condition of the property. Purchaser agrees to accept the Property on an “as is” and
“where is” basis as of the Closing Date, with all faults, including, without limitation, any defects or environmental conditions affecting the Property, whether
known or unknown, whether such defects or conditions were discoverable through inspection or not, and without any representation or warranty, express or
implied, direct or indirect or of any kind or nature, all of which Seller hereby disclaims. Purchaser agrees that neither Seller, nor its agents and
representatives, have made and the Seller specifically negates any representation or warranty, express or implied, direct or indirect or of any kind or nature
with respect to the Property or the conditions thereof, including, without limitation, the fitness for any particular purpose, habitability, merchantability,
marketability, profitability, including, without limitation, any defects, apparent, non-apparent or latent, which now exist or which may hereafter exist and
which, if known to the Purchaser, may have caused the Purchaser to refuse to purchase the Property, and further including, without limitation, proper design,
quality, physical condition, structural integrity, quality of character of materials used in construction of any improvements (drywall, asbestos, lead paint and
urea formaldehyde foam insulation), availability and quantity or quality of water, stability of soil, susceptibility to landslide or flooding, sufficiency of
drainage, water leaks, water damage, any other matter affecting the stability, integrity or condition of the Property or improvements, operation or income,
compliance with drawings or specifications, absence of defects, absence of hazardous or toxic substances, including mold, mildew, spores and/or other
microscopic organisms and/or allergens, absence of faults, conformity of the Property or the improvements to any zoning, land use or building code
requirements or compliance with any laws, rules, ordinances or regulations or any federal, state or local governmental authority, or the granting of any
required permits or approvals of any governmental bodies which had jurisdiction over the construction of the original structure, any improvements or
remodeling of the structure, compliance with laws and regulations including, without limitation, those relating to health, safety and the environment.
Purchaser is not now relying, and will not later rely, upon any representations and warranties, express or implied, direct or indirect or of any kind or nature
made by Seller or anyone acting or claiming to act, by, through or under or on Seller’s behalf concerning the Property. Purchaser, for itself and any entity
affiliated with Purchaser, waives and releases Seller and its affiliates from and against any liability or claim related to the Property arising under any cause of
action based on any other state, local, or federal environmental law, rule or regulation.
4. Occupancy Status of Property. Purchaser agrees that neither the Seller, nor its representatives, agents, or assigns, have made any representation or warranty
related to the existence of any tenants or occupants on the Property or as to the existence of any leases or the validity, enforceability, performance under or
continuation of any such leases on the Property. All leases shall be deemed assigned to Purchaser upon closing to the extent permitted by applicable law.
Purchaser further agrees that Seller is not holding any security deposits and has no information as to such security deposits and Purchaser agrees to assume all
responsibility and liability for the refund of such security deposits. Purchaser agrees that the Property may be subject to the provisions of local rent control
ordinances and regulations. Purchaser agrees that on the Closing Date, all eviction proceedings and other duties and responsibility of a property owner and
landlord, including, but not limited to those proceedings required for compliance with such local rent control ordinances and regulations, will be the
Purchaser’s sole responsibility.
5. Personal Property. No items of personal property located on the Property are included in this sale or the Purchase Price unless set forth in Exhibit B of this
Contract of Sale. No representation or warranty is made by Seller as to the condition of any personal property, title thereto, or whether any personal property
is encumbered by any liens and Seller assumes no responsibility for such personal property remaining on the Property.
6. Seller’s Right to Rescind. Seller at its sole discretion may rescind the Contract of Sale of the Property and return the Purchaser’s Earnest Money under any of
the following conditions: Property is damaged prior to the Closing Date, Seller is unable to deliver the Property as advertised, Seller is unable or unwilling to
remove valid objections to title prior to the Closing Date, any errors are made in the calculations concerning the offer to sell the Property, Seller is unable to
acquire title to the Property, or the Property is subject to any redemption rights.
7. Inspections. Seller authorizes Purchaser, at Purchaser’s expense, to make a complete inspection of the Property within seven (7) business days from the
execution of the Contract of Sale. Within five (5) business days of receipt of any inspection report or within twelve (12) business days of execution of the
Contract of Sale, whichever is earlier (the “Inspection Period”), Purchaser may terminate the Contract of Sale by providing Seller with written notice. If
Purchaser does not terminate the Contract of Sale within the Inspection Period, Purchaser shall be deemed to have accepted the Property “AS IS WHERE IS”,
without any deductions from the Purchase Price or offsets of any kind. Purchaser agrees that Seller shall not make any repairs or replacements indicated in
Purchaser’s inspection reports and Purchaser agrees it is Purchaser’s sole responsibility to obtain such reports by qualified professionals on any matters,
including without limitation, the conditions set forth in paragraph 3 above, the appliances, structural components and alterations to the Property or presence of
any environmental conditions or hazardous substances on the Property. If Purchaser properly terminates the Contract of Sale within the Inspection Period,
Purchaser shall be entitled to a refund of the Earnest Money from Escrow Agent.
8. Damage and Repairs. Risk of loss or damage by fire, flood or any other cause before the Closing Date shall remain with Seller. If before the Closing Date,
Seller elects in its sole discretion to make any repairs or treatments, which shall only be for functional purposes, all such repairs and treatments will be
completed by a vendor approved by Seller. Purchaser shall not enter the Property to make any repairs. Whether or not Seller makes any repairs or treatments,
Purchaser waives all claims related to the conditions of the Property and the quality of the repairs or treatments to the Property. Seller does not represent or
warrant any work or repairs or treatments to the Property. If Purchaser makes any changes to the Property prior to closing, then Seller shall have the right to
terminate the Contract of Sale at its sole discretion and Seller has the right to retain all Earnest Money as liquidated damages and upon notice by Seller to the
Escrow Agent and Purchaser, Escrow Agent will pay such Earnest Money directly to Seller without Purchaser’s consent.
9. Financing. If this Contract of Sale is contingent on Purchaser obtaining financing to purchase the Property, the type of financing should be one of the
following (check one): (i.) ____Conventional (Insured) (ii.) ____Conventional (Un-insured) (iii.) ____FHA (iv.) ____VA (v.) ____USDA/Rural
Development (vi.) ____Other (specify:_______________________). In such circumstance, Purchaser shall obtain an application for a mortgage loan based
on the terms as set forth below within three (3) business days of the execution of this Contract of Sale, an appraisal completed within fifteen (15) business
days after the execution of this Contract of Sale, and a loan commitment letter to be received within twenty (20) business days of the execution of this
Contract of Sale. Purchaser shall obtain an application for a mortgage loan based on the following financing terms: Loan Amount of $___________ and term
of _____ years with prevailing rates, terms and conditions. Lender shall fund the escrow agent and provide all loan closing documentation as of the Closing
Date. Any change to the above-referenced terms shall give Seller the right in its sole discretion to terminate the Contract of Sale and retain all Earnest Money
as liquidated damages. If Purchaser, despite its diligent efforts, does not comply with the provisions of this section, Seller may terminate this Contract of Sale
and sign the “Release of Earnest Money and Termination of Contract of Sale” form. Purchaser must provide its loan application, proof of the application date
and a copy of the denial letter from the prospective lender to Seller in the time period specified above as well as complies with all requests from lender during
the application loan process in order to receive the Earnest Money deposit. Failure to do so will result in the Earnest Money being disbursed to Seller and
upon notice by Seller to the Escrow Agent and Purchaser, Escrow Agent will pay such Earnest Money directly to Seller without Purchaser’s consent.
10. Closing Costs. Purchaser shall pay all of the closing costs associated with the transaction, including, without limitation, all recording costs, attorney fees,
survey, appraisal, application, processing, credit report, documentary, transfer taxes and tax stamps, excise and other fees, all costs related to the financing
and escrow fees. Purchaser is responsible for payment of all requested title insurance. Seller and Purchaser agree to prorate all assessments, rents, ground
rents and taxes as of the Closing Date. Purchaser assumes all obligations and liabilities including and after the Closing Date. Notwithstanding the foregoing,
the Seller at its sole discretion may agree to contribute toward closing costs which shall not exceed $___________ and will only be paid if costs are properly
substantiated costs and pursuant to the agreed amounts. In the event the total of closing costs are less than the amount of Seller’s contribution toward closing
costs, then Seller’s contribution shall be limited to the total of such actual closing costs. Purchaser agrees he/she is responsible for payment without limitation