AGREEMENT TO PURCHASE REAL ESTATE
1. THE UNDERSIGNED hereby offers and agrees to Purchase the following land situated in the City of County of Michigan, described legally as follows: property ID # commonly known as together with all improvements and appurtenances, if any, now in or on the premises (unless excepted herein), including light fixtures, shades, Venetian blinds, drapery hardware, curtain rods, tacked-down carpeting, built-in kitchen equipment, attached mirrors, attached humidifiers, ventilating fixtures, ceiling fans, fireplace screens, gas logs, fireplace doors and grate, window screens, storm sashes, garage door openers (including any transmitters), purchased water softener, incinerators, awnings, all TV antennas, rotors and controls, landscaping, fuel in tank at time of possession, and includes all existing appliances, improvements, remote controls, and owner manuals For the sum of __________________________Dollars $( ); Subject to the existing building and use restrictions, easements of record and zoning ordinances, if any. THE SALE TO BE CONSUMMATED By ( B )
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A. CASH SALE. Delivery of the usual Warranty Deed conveying a marketable title. Payment of purchase money is to be made by cashiers or certified check.
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B. CASH SALE WITH NEW MORTGAGE. Delivery of the usual Warranty Deed conveying a marketable title. Payment of purchase money is to be made by cashiers or certified check. This Agreement is contingent upon Purchaser being able to secure a CONVENTIONAL mortgage in the amount of $ ______________ MAXIMUM and pay _0_ down as buyer is pre-approved for 100% financing. Purchaser agrees to apply for such mortgage at his own expense within 3 calendar days from DATE OF ACCEPTANCE and execute the mortgage as soon as the mortgage application is approved and a Closing date is obtained from the lending institution. Purchaser agrees that in connection with said application to the lender, he will promptly comply with the lender’s request for necessary information required to process the loan application. If a firm and unconditional commitment for such mortgage cannot be obtained within___45____calendar days from the date of Seller’s acceptance, Seller has five days to declare this offer null and void, in writing, and return the deposit. If there is no written declaration, the offer remains open until the transaction is concluded. Evidence of mortgage denial shall immediately be presented to Seller, and the same shall make this offer null and void and the deposit shall be returned.
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C.
SALE SUBJECT TO MORTGAGE ASSUMPTION OR LAND CONTRACT:
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2. SALE SUBJECT TO EQUITY FINANCING. This Agreement is contingent upon Purchaser obtaining a commitment for equity financing in the amount of $ on Purchaser’s home at the address stated, within ____ days or this Agreement is null and void and the deposit will be refunded in full.
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3. THE SELLER shall deliver and Purchaser shall accept possession of said property subject to the rights of the following tenants: (see paragraph 25 for description of tenant information, if applicable). If Seller occupies the property it shall be vacated on or before days after closing. Commencing the day after closing through the day of vacating the property as agreed, Seller shall pay the sum of $ per day to the purchaser. The Broker shall retain from the amount due Seller at closing the sum of $ as security for said occupancy charge, paying to Purchaser the amount due him and returning to Seller the unused portion as determined by date property is vacated and keys surrendered to Broker. Broker has no obligation implied or otherwise for seeing that the premises are vacated on the date specified or the condition of the premises, etc., but is only acting as an escrow agent for holding of the occupancy escrow funds. If tenants occupy the property, then: Seller will have the Tenants vacate the property before closing. Buyer will be assigned all Landlord rights and security deposit and rents prorated to date of closing, with Buyer assuming Landlord rights and obligations after date of closing.
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4. THE PURCHASER is hereby authorized to make this offer and deposit a PERSONAL CHECK MONEY ORDER CASH in the amount of $ and/or promissory note in the amount of $ and shall be held by Title Agency and shall be applied on the purchase price if applicable and the sale is consummated.
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5.
SALE SUBJECT TO VA OR FHA FINANCING:
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6. PURCHASER ACKNOWLEDGES RECEIPT OF AGENCY AND SELLER DISCLOSURE STATEMENTS prior to signing this Agreement, as required by Michigan Law.
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NOTE: CONDITIONS OF SALE PRINTED ON REVERSE SIDE AND IN ATTACHED ADDENDUM IF APPLICABLE are incorporated and made a part hereof. Purchaser and Seller shall initial the reverse side of this Agreement and attached Addendum. By the execution of this instrument, Purchaser acknowledges receipt of a copy of this Agreement. IN THE PRESENCE OF: ______________________________ S.S.#
Purchaser ___________________________________________ Witness
______________________________ S.S.# __________________________________
Address
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Dated
ACKNOWLEDGMENT OF DEPOSIT Received from the above named Purchaser the deposit money above mentioned, which will be applied as indicated in paragraph 4 above, or will be returned forthwith after tender, if the foregoing offer and deposit is declined. By __________________________________________________ ACCEPTANCE: By affixing Seller’s signature(s) hereto, Seller accepts and acknowledges receipt of a copy hereof. Seller further agrees that procured said offer and has brought about this sale and agrees to pay: Seller hereby directs that no further offers be presented after signing of this Agreement.
has
IN THE PRESENCE OF: _____________________________
Witness
_________________________________
Seller
S.S.# S.S.#
_________________________________ Seller
____________________________
Dated Address
The undersigned Purchaser acknowledges receipt of Seller’s acceptance of the foregoing Agreement to Purchase. _____________________________ ________________________________________
Dated Purchaser
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Dated
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Purchaser
7. TITLE INSURANCE. As evidence of title, Seller agrees to furnish Purchaser at the time of closing a commitment for a Policy of Title Insurance without standard exceptions in an amount not less than the purchase price, bearing a date later than acceptance hereof and guaranteeing the title in the condition required for the performance of the offer. Said Commitment of Title Insurance shall be converted to a Policy of Title Insurance subsequent to date of closing and forwarded to Purchaser as soon as all necessary documents have been processed and recorded to cause the issuance of a Policy of Title Insurance. 8. TITLE OBJECTION. If objection to title is made, based upon a written opinion of Purchaser’s attorney that the title is not in the condition required for performance hereunder, Seller shall have thirty days from the date he is notified in writing of the particular defects claimed, either to (a) remedy the title defect(s) or (b) obtain a Title Insurance Commitment insuring over said defect(s). Purchaser agrees to complete the sale within ten calendar days following delivery of the reissued Title Commitment. If Seller is unable to remedy the title or obtain Title Insurance within the same time specified, the deposit shall be refunded forthwith to Purchaser in full termination of this Agreement, unless Purchaser elects to proceed with the sale accepting such title as Seller is able to convey. 9. CLOSING CONDITIONS. If this offer is accepted by Seller and title can be conveyed in the condition required hereunder, all parties agree to complete the sale within ten calendar days after the issuance of the Commitment for Title Insurance. However, if sale is to be consummated by new mortgage and no closing date is contained in this purchase Agreement, the closing will be within ten (10) calendar days of formal written approval date from lending institution. 10. CLOSING DATE. The closing of this sale shall take place at a location designated by the mortgage lender or at a place designated by listing Broker. Purchaser requests ON/OR BEFORE as the date for closing. If the parties fail to agree upon a closing date, the date shall be within the time provisions of paragraph 9, above. 11. TAXES, ASSESSMENTS, WATER. All taxes and assessments which have become a lien upon the land, whether recorded or not recorded, at the date of closing shall be paid by Seller. Current taxes, if any, shall be prorated and adjusted as of the date of closing in accordance with the due date basis of the municipality or taxing unit in which the property is located on a 365 day basis. Interest, rents, insurance, condominium or association dues or fees shall be prorated and adjusted in a like manner. Broker may retain from the amount due Seller at closing, a minimum of three hundred ($300.00) dollars for water charges. (Based on water usage of the community.) When the final water bill or reading is received, all water adjustments shall be made through the DAY OF POSSESSION. 12. DEFAULT. In event of default by Purchaser hereunder, Seller may elect to enforce the terms hereof or declare a forfeiture and retain the deposit as liquidated damages. In event of default by Seller hereunder, Purchaser may elect to enforce the terms hereof, or demand and be entitled to a refund of his entire deposit in full termination of this Agreement. 13. ARBITRATION. Any claim or demand of Seller(s), Purchaser(s), Broker(s), or Agent(s) or any of them, arising out of this Offer To purchase but limited to any dispute over the disposition of any earnest money deposits or arising out of or related to the physical condition of any property covered by this Offer To Purchaser, including without limitation, claims of fraud, misrepresentation, warranty and negligence, shall be settled in accordance with the rules, then in effect, adopted by the American Arbitration Association and the Michigan Association of Realtors. This is a separate voluntary agreement, between the Purchaser(s), Seller(s), and/or Broker(s). Failure to agree to arbitrate does not affect the validity of this Offer To Purchase. A judgment of any circuit court shall be rendered upon the award or determination made pursuant to this Offer To Purchase. This Offer To Purchase is specifically made subject to and incorporates the provisions of Michigan law governing arbitration, MCL 600.5001: MSA 27A.5001, as amended, and the applicable court rules, MCR 3.602, as amended. The terms of this Offer To Purchase shall survive the closing. The parties acknowledge that they understand that, by agreeing to binding arbitration, they have given up their right to a day court and they understand the arbitration process and that the award of the arbitration is final and conclusive and not appeal able except for limited due process reasons as set forth in Michigan law and court rules hereinbefore set forth. The parties □ Do agree X don’t agree at this time to arbitrate any future disputes. 14. CONSIDERATION. Purchaser and Seller hereby acknowledge notice of the fact that Broker may accept consideration with regard to the placement of an abstract, loan or mortgage, life, fire, theft, flood, home warranty, title or other casualty or hazard insurance arising from this transaction and expressly consent thereto as required by Michigan Law. 15. TIME IS OF THE ESSENCE. At all times under this Agreement where certain time constraints are set forth, the parties have agreed that time is of the essence and that no extensions of said limits are expected or agreed to unless specifically agreed to in writing. 16. ATTORNEY RECOMMENDATION. This is a legal and binding document, and both Purchaser and Seller acknowledge that they have been advised to consult an attorney to protect their interests in this transaction. Where the transaction involves financial and tax consequences, the parties acknowledge that they have been advised to seek the advice of an accountant or financial advisor. 17. OBLIGATIONS. If two or more persons execute this Agreement as Purchaser or Seller their obligations hereunder shall be joint and several and the covenants herein shall bind and inure to the benefits of the personal representatives, administrators, successors, and assigns of the respective parties. Whenever any words, including pronouns, are used herein in the masculine gender, they shall be construed as though they were also used in the feminine or neuter gender cases where they would so apply. Whenever any words, including pronouns, are used herein in the singular or plural form, they shall be read and construed in the plural or singular respectively, whenever they would so apply. 18. HOME PROTECTION PLAN. Seller DOES DOES NOT agrees to buy a one year Home Protection Plan made available by Broker. (Buyers can choose to purchase Home Protection Plan directly from the Broker without Seller participation). Ask an ERA Realty Select agent for details or call 734-793-3000 19. MUNICIPAL INSPECTION. If the municipality where the property is located requires an inspection prior to sale, Seller will pay for necessary inspections and required repairs, if any, to obtain written approval of the municipality. Seller chooses to waive municipality inspection. They agree to release and hold Realty Select LLC DBA ERA Realty Select, Broker, agent and associates of the broker and all third parties harmless from any claims. The Buyer’s and Seller’s been told by the broker to obey the laws and follow Ordinances of the municipality. The buyer agrees that in the some municipalities like Detroit Etc. City Inspections is a must. If seller’s waives inspections, buyer becomes sole responsible to pay and order subject property inspection prior to closing. We encourage buyers to contact their local city or township for more details. 20. PHYSICAL CONDITION. Purchaser clearly understands that he is purchasing a USED structure in an “AS IS” condition. Purchaser acknowledges that (a) he has examined the property; (b) he has had the opportunity to have additional inspections; and (c) ERA Realty Select, LLC neither warrants the condition of the property nor assumes any responsibility for the representations made by Seller pertaining to the condition of the property. Purchasers agree not to bring any lawsuits or claim of arbitration against Realty Select, LLC or ERA Realty Select, or its Broker/agents for any defect to the property condition. 21. PRIVATE INSPECTION. Purchaser DOES DOES NOT, choose to have the property privately inspected at his expense. (Note: Inspections required by FHA, VA, other lenders or municipalities are neither made for nor should be relied upon by Purchaser.) If property is to be privately inspected, the following Inspection Clause shall govern: Seller shall permit an inspector(s) of Purchaser’s choice and at Purchaser’s expense within 5 days after date of Purchaser’s receipt of Seller’s acceptance of this offer or any subsequent counter offer thereto. Unless Purchaser notifies Seller, in writing, in care of listing broker within the number of days stipulated above that the purchaser is dissatisfied with the results of any inspections, or if Purchaser chooses not to have the property inspected, all terms and conditions hereof shall be binding and the sale shall be consummated as specified herein. Failure to notify Seller of such defects within this time period shall constitute a waiver of this paragraph by Purchaser and he shall take the property “AS IS”. Purchaser and Seller mutually agree that if Purchaser is dissatisfied with the results of any inspections and notice is properly given, as specified herein, this agreement to purchase shall be canceled and all earnest monies shall be returned to the Purchaser, subject to verification of funds of personal check if applicable. 22. MAINTAIN CONDITION. Until possession is delivered, Seller agrees to maintain premises in the same condition as existing at acceptance of this offer, to maintain the grounds, heating, sewer, plumbing, electrical systems, any built-in appliances and equipment in normal working order and to keep the roof water-tight. In the event the property herein has been winterized, it shall be the obligation and the expense of Seller to de-winterize the same prior to closing. 23. WALK THROUGH. Purchaser shall have the right to a walk-through inspection of the premises being purchased within twenty-four hours prior to closing and Seller agrees to leave the premises broom-clean upon vacating same and all personal items removed from the premises. 24. COUNTER OFFER. In the event Seller makes any written change in any of the terms and conditions of the offer presented by Purchaser, such changed terms and conditions shall constitute a counter-offer by Seller to Purchaser and which shall remain valid until . , Unless earlier withdrawn in writing, and shall require acceptance by Purchaser by initialing each change before such date and time. 25. ADDITIONAL CONDITIONS: _________________________________________________________________________________________________________________________________ _________________________________________________________________________________________________________________________________. 26. ENTIRE AGREEMENT. This Agreement supersedes any and all understandings and agreements and constitutes the entire agreement between the parties hereto and Broker (other than the listing/commission agreement) and no oral representations or statements shall be considered a part hereof. The parties hereto have read the conditions of this Agreement and have affixed their initials as acknowledgment and acceptance hereof. Purchaser please initial: _____, _____ Seller please initial: _____, _____ REV. 3/7//05