6.Seller’s responsibility for any repairs required as a result of an inspection by the lender shall not exceed $________. If the cost for any such repairs exceeds such amount, then (i) Purchaser shall be responsible for the cost and expense of any amounts exceeding such repair limit, or (ii) Seller shall have the right to cancel the Contract of Sale and return all earnest moneys paid by Purchaser. Purchaser shall not have the right to make repairs to the property prior to closing.
7.Any obligation of Seller to obtain a compliance certificate relating to the property (such as a certification relating to smoke detectors) shall not apply in the event the property is not in habitable condition, unless otherwise required by law.
8.If this sale is being financed, Purchaser shall have five (5) business days from the effective date of the Contract of Sale to make loan application. Seller may cancel the Contract of Sale in the event Purchaser is not “prequalified” within seven (7) business days from the date of the Contract of Sale. Purchaser must, within seven (7) business days from the date of the contract, provide Seller with a “prequalification” letter from a bona fide lending institution. In the event Purchaser’s loan application is denied and this sale is not consummated because (i) Purchaser’s complete credit history was not disclosed at the initial loan application, or (ii) Purchaser’s required income and cash reserves cannot be verified, then Purchase shall be in default of the Contract of Sale and Purchaser’s earnest money deposit shall be forfeited to Seller.
9.Notwithstanding any other provision of the Contract of Sale (including, if applicable, any financing contingency), in no event shall the Contract of Sale be contingent upon the ability of the Purchaser to sell or close other real estate owned by Purchaser.
10.Title will transfer with a Special or Limited Warranty Deed, Grant Deed, Cash Sale Deed, or Quit Claim Deed depending upon the state the property is located in and the laws of title transfer.
11.Any Purchaser closing costs (including FHA/VA non-allowables and Purchaser share of escrow/title company/attorney closing fees) that are to be paid by seller shall not exceed $______________. In the event the total of such 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 closing costs. Seller’s contribution to closing costs shall not be applied to loan origination fees; prepaid taxes, interest or insurance; mortgage insurance; funding fees; appraisal; credit report; mortgage brokerage fees, or other lender charges not previously agreed to. Purchaser/lender shall supply an itemized list of closing costs along with proof of prequalification within __________ business days from the date of the Contract of Sale. ANY COST SELLER IS PAYING MUST BE ITEMIZED ON THE HUD-1 AND CANNOT BE SHOWN AS A CREDIT TO THE PURCHASER.
12.Seller be required to provide a survey of the property. In the event purchaser is obtaining financing and the lender providing said financing shall require a current survey, said survey shall be at buyer’s expense, except that the cost of same may be included in Seller’s contribution to closing costs as set out in paragraph 11, above. In no event shall the inclusion of the cost of said survey increase the maximum amount of Seller’s contribution.
13.Settlement/closing shall be held in the offices of the Seller’s attorney or closing agent, or at a place designated and approved by Seller. Seller’s attorney or agent shall hold the deposit moneys in a non-interest bearing trust account. Copy of same is to be forwarded to Seller immediately upon receipt. Time is of the essence. The sale may not be closed in escrow without the prior written consent of Seller, namely Seller execution of the HUD-1.
14.All verbal negotiations are subject to written acceptance by Seller.
15.Purchaser may not occupy the property prior to closing and funding. Purchaser shall be in default of the Contract of Sale in the event he occupies or alters the property or permits it to be occupied by any other person prior to closing and funding.
16.The acceptance of the Deed by Purchaser shall be deemed to be a full performance and discharge of every agreement and obligation on the part of the Seller to be performed pursuant to the provisions of the Contract of Sale.
17.The total commission payable by Seller pursuant to this sale shall be 6% of the purchase price or $___________. The commission shall be paid pursuant to the terms of a separate agreement between Broker and Seller. In the event that there is a cooperating agent involved in the sale of this property, commissions must be shown as an equal split on the HUD-1.
The undersigned approves and accepts this addendum and acknowledges this addendum to be a part of the Contract of Sale.