ADDENDUM TO SALES CONTRACT BETWEEN (Seller) and ______________________________ (Purchaser) dated the _____ day of _______________, 200 ___.
(In the event any provision of this Addendum conflicts in whole or in part with the terms of the Contract of Sale, the provisions of this Addendum shall control.)
1.Purchaser acknowledges that Seller obtained the property by foreclosure. The Contract of Sale is subject to each of the following conditions: (i) final acquisition of property by Seller and (ii) the ability of Seller to clear title to the extent required in the Contract of Sale. Should Seller not acquire property as anticipated, Seller shall notify Purchaser that the Contract of Sale is canceled and the earnest money deposit shall be returned to Purchaser and Seller shall have no further obligation to sell or convey the property to Purchaser.
2.Time of the Essence. Buyer acknowledges that Seller’s acceptance of the contract purchase price is contingent upon closing and funding the sale herein on or prior to the contract close date.
Seller has opened title with:
A copy of the title commitment is attached hereto.
If Buyer elects to use a closing agent other than the agent specified above, Buyer shall have said agent deliver to Seller within five (5) days of the execution of this contract, a title commitment defining the status of title and any exceptions thereto. In either event, it shall be the responsibility of the Buyer to schedule with the closing agent a settlement date on or before the contract close date.
In the event that there are exceptions to the title which must be resolved by the seller prior to closing and these exceptions are not resolved before the contract close date, the contract close date shall be extended to five (5) days beyond the date on which Seller provides to the closing agent a resolution of any title exceptions.
In the event that the sale does not close on or before the contract close date (or extended date as provided above), Buyer shall pay at closing in addition to the contract price an amount equal to the greater of $50 or .0329% of the contract purchase price for each day beyond the close date.
Seller agrees to deliver and purchaser agrees to accept insurable title. In the event that there are any valid objections to title and seller cannot deliver a title insurance policy which insures over these exceptions, Seller shall have sixty (60) days from the date of receipt of written notification within which to resolve title exceptions or defects or other title issues which in any way impede or impair Seller’s ability to convey insurable title. If, within such sixty (60) day period, Seller determines that it is unable or unwilling to resolve such matters, then Purchaser (i) may take title in its then state, thereby waiving any title objections, or (ii) terminate the contract and receive a refund of any deposit as Purchaser’s sole and exclusive remedy.
Buyer Initial __________
3.Purchaser accepts the property in “AS IS” condition at the time of execution of this contract, including any hidden defects, known or unknown, which include but are not limited to any mold or mold-related issues. Purchaser acknowledges that neither Seller nor its agents have made any warranties, implied or expressed, relating to the condition of the property. Except as specifically set out on Exhibit “A” attached hereto, Seller shall not be responsible for the repair, replacement or modification of any deficiencies, malfunctions or mechanical defects in the material, workmanship and mechanical components of the appurtenant structures and improvements prior or subsequent to closing. Items of personal property are not included in this sale. Seller makes no representation or warranty as to the condition of personal property, title to personal property or whether any personal property is encumbered by liens. Purchaser agrees that Seller shall have no liability for any claim or losses Purchaser or Purchaser’s successors may incur as a result of any condition or other defect, which may now or hereafter exist with respect to the property. The property has neither been inhabited nor inspected by the Seller.
4.Purchaser is urged to make all necessary inspections at Purchaser’s expense. The purpose of inspection will be to inform Purchaser in a written report of whether the property is in a condition materially different than Purchaser expected when making the offer to purchase the property by executing the Contract of Sale. Purchaser acknowledges that it is Purchaser’s sole responsibility to obtain inspection reports by qualified professions. In the event the inspection reveals material deficiencies, Purchaser may cancel the Contract of Sale by providing Seller with written notification together with the inspection reports and a written designation of the deficiencies. If Purchaser chooses not to make inspections, Seller and Seller’s agent will be held harmless in the event of any mechanical failures or structural defects.
5.Purchaser agrees to indemnify Seller and fully protect, defend and hold Seller, its agents, employees and contractors harmless from and against any and all claims, costs, liens, loss, damages, attorney’s fees and expenses of every kind and nature that may be sustained by or made against Seller or any damage to the property or any adjoining property, or any injury to Purchaser or any other person that may result from or arise out of inspections made by Purchaser or its agents, employees and contractors prior to closing.