Purchase and Sale Agreement Real Estate Owner Finance by lforsley


									                                AGREEMENT OF SALE

       AGREEMENT, made this _____ day of March, 2011, by and between
____________________ , with an address of _________________________, Town of
_______________, County of _______________, State of ____________________, ________,
(hereinafter referred to as the BUYER); and ____________________, with an address of
_________________________, Town of _______________, County of _______________, State
of ____________________, ________ (hereinafter referred to as the SELLER).

                                     W I T N E S S E T H:

      WHEREAS, the SELLER is the owner of a certain parcel of land located at
____________________,, (Tax map # __________), _________________,
____________________, as more particularly described in Warranty Deed to SELLER dated
__________, 20___ and recorded in the ____________________, County Registry of Deeds at
Book _____ Page _____ (the "Premises"); and

       WHEREAS, the BUYER desires to purchase the Premises upon and subject to the terms
and conditions herein set forth and the SELLER is willing to sell the Premises, upon such terms
and conditions;

       NOW THEREFORE, in consideration of the mutual covenants and agreements
hereinafter set forth, the parties hereto agree as follows:

       1. The SELLER hereby agrees to sell and convey and the BUYER agrees to purchase the
Premises, upon and subject to the terms and conditions hereinafter set forth.

       2. Purchase Price: The agreed purchase price for the Premises is $155,000.00
(“Purchase Price”), payable as follows:

       (a) Deposit on signing of this agreement by BUYER and SELLER - $____________.

       (b) Additional deposit – $____________.

       (c) Balance of the Purchase Price – See “Owner Financing Addendum” attached hereto
       as Addendum A.

       (d) The deposits referred to above shall be held by
(the "Escrow Agent") in a non-interest bearing escrow account pending the closing hereunder.

       3. Closing: The closing hereunder shall take place on or before ______________,
20___. The closing shall be held at the ___________________ County Registry of Deeds or
such other place as shall be mutually agreed upon.

        (a) At the closing the SELLER shall deliver to the BUYER or such other person or entity
as the BUYER may designate, a quitclaim deed to the Premises. The SELLER shall convey to
the BUYER marketable title to the Premises, free from any and all encumbrances except zoning
and other governmental laws and regulations, any and all current use taxation to which all or any
portion of the Premises may be subject, any and all easement, restrictions and other matters set
forth or referenced in Addendum B, and all easements and rights of way and utility and water
rights of record existing at the time of conveyance hereunder. Possession of the Premises, free
from all tenants, personal property and encumbrances except as herein noted, shall be delivered
to the BUYER immediately upon the closing hereunder.

        (b) Real estate taxes, special assessments, water and sewerage bills and fuel in storage
shall be prorated as of transfer of title. SELLER shall be responsible for the payment of the New
Hampshire Real Estate Transfer Tax. BUYER shall be responsible for the cost of deed
preparation, recording fees, and all other normal and customary closing costs. SELLER shall be
responsible for all other normal and customary seller closing costs.

        4. In the event that the BUYER fails to perform any material agreement herein,
SELLER’S sole and exclusive remedy shall be retention of the deposit as full and reasonable
liquidated damages. In the event that SELLER fails to perform any material agreement herein,
BUYER may elect any legal or equitable remedies BUYER may have against SELLER.

         5. If the BUYER desires an examination of title, BUYER shall pay the cost thereof. This
contract shall be automatically extended for a period of thirty (30) days in order to allow the
SELLER to clear any defect or defects in title brought to the SELLER'S attention in writing by
the BUYER on or before the Closing. The BUYER shall have the right to refuse title to the
Premises if unmarketable and notice of same is provided to BUYER, and, in such event, this
Agreement shall be terminated and of no further force or effect and the full deposit shall be
refunded to BUYER. In such event neither the BUYER nor the SELLER shall have any further
liability hereunder.

         6. The buildings on said Premises shall, until the full performance of this Agreement, be
kept insured against fire with extended coverage in the sum as heretofore insured by the
SELLER. In the case of loss all sums recoverable from said insurance shall be paid or assigned
on delivery of the Deed to the BUYER (excepting any sums recoverable on account of loss of
SELLER’s personal property which shall be payable to SELLER and not assigned to BUYER)
unless the Premises shall previously have been restored to its former condition by the SELLER;
or, at the option of the BUYER, this Agreement may be rescinded and the deposit refunded if any
such loss exceeds the sum of $                                   .

       7. The BUYER and the SELLER each represent to the other that no broker or realtor was
involved in bringing about the transaction contemplated by this Agreement and that no such

broker or realtor is entitled to any fee or commission as a result thereof. The SELLER shall
indemnify and hold the BUYER harmless from and against any cost, claim, liability or expense,
including, without limitation, attorney's fees, incurred by the BUYER or asserted against the
BUYER or the Premises, as the case may be, by any such broker or realtor.

       8. The BUYER and SELLER each acknowledge and agree that the execution of a
mutually acceptable Promissory Note and Mortgage are a material condition for closing and a
material inducement for BUYERS to purchase the real estate that is the subject of this agreement.

        9. This Agreement contains the entire agreement between the parties and neither they nor
their agents shall be bound by any statements, terms, conditions, provisions or representations
not herein written. All prior understandings, whether oral or written, are merged herein. All
amendments must be in writing and executed by the parties with the same formality as set forth

       10. All provisions of this Agreement are binding upon, inure to the benefit of, and are
enforceable by and against the respective successors and assigns of each party to this Agreement.

        11. The parties hereto hereby agree that they will execute any and all agreements,
instruments and documents that are reasonably necessary or required in order to effect the intent
of this Agreement, including, without limitation, any such agreements, instruments and
documents that may be required in connection with the BUYER'S financing or the closing
hereunder, such as title insurance affidavits or other affidavits required to provide clear and
marketable title or where necessary to obtain title insurance.

        12. This Agreement is to be governed by and construed in accordance with the laws of
the State of _____________________.

        13. This Agreement may be executed in any number of counterparts each of which shall
constitute an original and all of which together shall constitute but one and the same instrument.
The representations and obligations of the parties shall be effective at closing and subsequent to
closing with the same force and effect as if made at that time.

        14. The SELLER hereby notifies the BUYERS of the following information required by
New Hampshire law to be provided to the purchasers of real estate including a building, and the
BUYERS by executing this Agreement acknowledges receipt of such notifications and that such
notification was provided prior to the BUYERS’ execution of this Agreement:

       A. RADON GAS: Radon gas, the product of decay of radioactive materials in rock may
       be found in some areas of ____________________. This gas may pass into a structure
       through the ground or through water from a deep well. Testing can establish its presence
       and equipment is available to remove it from the air or water.

       B. LEAD PAINT: Before 1978, paint containing lead may have been used in structures.
        The presence of flaking lead paint can present a serious health hazard, especially to
       young children and pregnant women. Tests are available to determine if lead is present.

       C. WATER SUPPLY: See Exhibit "C" for further information, if any.

       D. SEWAGE DISPOSAL SYSTEM: See Exhibit "C" for further information, if any.

        15. In the event of any dispute relative to the deposit monies held in escrow, the Escrow
Agent may, in its sole discretion, pay said deposit monies into the Clerk of Court of proper
jurisdiction in an Action of Interpleader, providing each party with notice thereof at the address
recited herein, and thereupon the Escrow Agent shall be discharged from its obligations as
recited therein and each party to this agreement shall thereafter hold the Escrow Agent harmless
in such capacity. Both parties agree that the Escrow Agent may deduct the cost of bringing such
Interpleader action from the deposit monies held in escrow prior to the forwarding of same to the
Clerk of such Court.

        16. Seller agrees to deliver the Property in its PRESENT AS-IS CONDITION except as
otherwise set forth herein. Seller does hereby certify and represent that Seller has the authority
and capacity to convey the Property with all improvements. Seller further certifies and represents
that Seller knows of no latent defects to the Property and knows of no facts materially affecting
the value of the Property except the following. Buyer has inspected the Property and accepts the
Property in its PRESENT AS-IS CONDITION, except as otherwise specified herein.

        IN WITNESS WHEREOF, the parties have hereunto set their hands as of the day and
year first above written.


____________________________                         ______________________________
Witness                                              John Doe


____________________________                         ______________________________
Witness                                              Jane Doe

                                      ADDENDUM A

                             OWNER FINANCING ADDENDUM

       This Addendum is made a part of the attached contract between Jane Doe, with an
address of _______________, Town of _______________, County of _______________, State
of ____________________, ________, (hereinafter referred to as the BUYER); and John Doe,
with an address of ____________________, Town of ____________________, County of
__________________, State of ___________________, _______ (hereinafter referred to as the

1. Financing Terms: Buyer shall pay a portion of the Price by executing a “Promissory Note”
for the benefit of Seller under the following terms:

       Contract Price: $

       Down Payment: $

       Original Principal Loan Amount: $ (see paras. 2(b) and (c) below).

       Interest Rate: ( %)

       Term of Loan:

       First Payment Due:

       Payment Amount: $

       Late Charge:

2. Additional Provisions:

       (a) Amortization - Installment payments shall be amortized over ____ months;

        (b) Balloon Payment - A balloon payment comprised of all unpaid principal and accrued
interest net yet paid and less any reductions in the principal amount of the loan is due on
__________, 20___

3. No Assumption: The Mortgage shall contain a “due on sale” clause permitting acceleration of
maturity of the Note upon Buyer’s conveyance of any interest in the Property, except upon the
death or change in marital status of Buyer.

4. Prepayment Penalty: The Note shall permit prepayment of all or any portion of the Note
without penalty.

5. Escrow Taxes/Escrow Not Required: Buyer shall also be responsible for the payment of
property taxes and hazard insurance premiums on the Property. These obligations will be paid
directly by the Buyer. Buyer shall furnish Seller annually, before the taxes become due, evidence
that all taxes on the Property have been paid. Buyer shall furnish Seller annually evidence of
paid-up casualty insurance naming Seller as an additional loss payee.

6. Disclosure of Tax Identification Numbers: By no later than Settlement, Buyer and Seller
shall disclose to each other their respective Social Security Numbers or other applicable tax
identification numbers so that they may comply with federal laws on reporting mortgage interest
in filings with the Internal Revenue Service.

7. Insurance: Buyer will keep improvements insured against loss by fire, hazards included
within the term "extended coverage" and any other hazards including floods or flooding. All
policies shall be in the Buyer’s name and have a standard mortgagee clause with Seller named as
“additional insured.” Buyer will pay premium for coverage.

8. Additional Provisions: To the extent the terms of this ADDENDUM modify or conflict with
any provisions of the “Agreement of Sale” these terms shall control. All other terms of the
“Agreement of Sale” including all prior addenda not modified by this ADDENDUM shall remain
the same.

        IN WITNESS WHEREOF, the parties have hereunto set their hands as of the day and
year first above written.


____________________________                        ______________________________
Witness                                              John Doe


____________________________                        ______________________________
Witness                                              Jane Doe

                          ADDENDUM B

               (Deed and/or Legal Property Description)

                            EXHIBIT C

(Property Information Disclosure to be provided by SELLER to BUYERS)


To top