SAMPLE CONTRACT OF SALE by StuartSpruce

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									                                          SAMPLE CONTRACT OF SALE


                                    CONTRACT TO PURCHASE REAL ESTATE

                                                                                                  Date: July 11, 2009

1. SALE OF PROPERTY, Dann R. Kraatz and Martha J. Kraatz (“Seller”) agrees to sell, transfer, and convey to
   (Your Name)             (“Buyer”), and Buyer agrees to purchase from Seller, in accordance with the terms of this
   Agreement, all of Seller’s right, title, estate, and interest in and to certain real property know as Kraatz’s
   Johnson County Farm , which is shown on Exhibit A attached hereto and incorporated herein and has
   Permanent Parcel No.’s          09-03-201-000 and 09-02-114-000                        (“Property”), legal description
   on Seller’s title to govern. No personal property is included in this sale.

2. PURCHASE PRICE: The Buyer will pay $ (Auction Bid Price) for the property (the “Purchase Price”).

3. LIKE-KIND EXCHANGE: The parties agree that this transaction is or could be a part of a “1031 Like-Kind
   Exchange” as set out in the Internal Revenue Code. All parties and their agents will take whatever steps are
   necessary to comply with said regulations, but at no monetary costs to the Seller.

4. EARNEST MONEY: [Contemporaneously with] the full execution hereof, Buyer shall tender a check for
   $20,000          to be deposited as earnest money, which shall apply toward the Purchase Price or closing costs.
   Earnest money shall be held in escrow by United Country/Kraatz Realty                   . If the title requirements set
   forth below in Section 7 are not fulfilled, or any other obligations of Seller set forth herein are not satisfied, at
   Buyer’s option, and as Buyer’s sole exclusive remedy, Buyer may either: (i) specifically enforce the provisions
   of this Agreement; or (ii) cancel and terminate this Agreement and in such event the earnest money deposit shall
   immediately be refunded to Buyer. If Buyer fails to fulfill his/her/its obligations under this agreement, or Buyer
   fails to close this transaction after Seller has fulfilled all of Seller’s obligations, at Seller’s option, and as
   Seller’s sole and exclusive remedy, Seller may either; (i) specifically enforce the provisions of this Agreement;
   or (ii) cancel and terminate this Agreement and in such event the earnest money deposit shall immediately be
   paid to Seller.

5. [LEASES AND CROP REVENUE: All USDA Farm Service Agency allocated crop bases and yields currently
   assigned to the Property, if any, shall transfer to Buyer.] The current CRP contracts are attached to this contract.
   Buyer will assume these contracts.

6. CONVEYANCE: At Closing, upon receipt of the Purchase Price (less the prorations and adjustments set forth
   in Section 8), Seller shall deliver title to the Property to Buyer through a duly executed and recordable Warranty
   Deed, conveying good and marketable title to the Property, subject only to the Permitted Encumbrances, as
   defined below.

    Seller shall further deliver to Buyer, at Closing, an affidavit certifying that no labor, materials or services have
    been furnished to or for the benefit of the Property within one hundred twenty (120) days prior to Closing, other
    than those which have been listed in the affidavit of title and have been paid in full by Closing, as evidenced by
    receipts attached as exhibits to said affidavit of title.


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7. TITLE INSURANCE: A $1,000.00 title commitment was available prior to the auction for potential Buyers to
   review, however, within 15 days of full execution hereof, Seller shall furnish to Buyer, at Seller’s cost, a
   commitment for an owner’s title insurance policy in the amount of the Purchase Price issued by a company
   authorized to insure title to real property in the State of Illinois and which is reasonably acceptable to Buyer.
   Where the title commitment so furnished shows special exceptions to title other than those standard exceptions
   commonly and ordinarily found in commitments for owner’s title insurance policies in Johnson County, Illinois,
   and where such special exceptions relate to restrictions, conditions, defects or other matters which would
   interfere with Buyer’s use or adversely affect the value of the Property, then within 5 days of delivery of such
   title commitment to Buyer, Buyer may deliver written notice of objection thereto to Seller. Such notice shall
   state specifically, those exceptions to which objection is being made. All objections not specifically enumerated
   within such a timely delivered notice shall be waived by Buyer and thereafter be Permitted Encumbrances.

    Within 10 business days of Buyer’s delivery of notice of objections to Seller, Seller may cure such objections
    or have the exceptions waived or removed by the title company issuing the commitment. If, within such 10
    business day period, Seller fails to cure and/or have waived such objections and exceptions, or within that
    period Seller delivers written notice to Buyer that it will not so cure, then, within 5 days from the end of the
    period within which Seller may cure or delivery of such notice from Seller (whichever is applicable), Buyer
    shall have the option to:

    a) Terminate this Agreement by delivering written notice thereof to Seller, in which event the earnest money
    deposit paid by Buyer shall be returned to Buyer; or

    b) Agree to extend the closing date for 30 days to give Seller additional time to cure such objections.

    If Buyer fails to deliver notice of termination or an agreement extending the time in which Seller may cure such
    objection within such 5 day period, the objection(s) shall be waived, the items to which objection had initially
    been made shall thereafter be Permitted Encumbrances, and the transaction shall close.

    Seller shall furnish the committed owner’s title insurance policy, subject to the Permitted Encumbrances and the
    standard exceptions typically included in owner’s policies in Johnson Country, Illinois (including, but not
    limited to exceptions for drainage tiles, encroachments that could be identified by survey, and rights and claims
    not shown in the public records), as soon as practicable after Closing.

8. PRORATIONS: All ad valorem real estate taxes (“Taxes”) imposed on the Property for the year in which
   Closing occurs and any prior year which are not yet due and payable shall be prorated and adjusted to the date
   of Closing, based on the latest information available with respect to Taxes. All prorations will be on the basis of
   a 365-day year with the date of closing being charged to Buyer. The Taxes which are charged to Seller pursuant
   hereto shall be a Permitted Encumbrance; and Buyer shall be responsible to pay all of such Taxes, when they
   come due. Seller shall be responsible to pay for all expenses in connection with the release of any title exception
   that is not a Permitted Encumbrance, Seller’s attorney’s fees, real estate transfer or documentary taxes, one-half
   of the customary escrow or closing fees charged by the title company, title examination and search fees, the
   premium for Buyer’s basic owner’s title insurance policy



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    in the amount of the Purchase Price (excluding endorsements for extended coverage, access, zoning and other
    matters desired by Buyer), and such other expenses provided herein or customarily to be paid by Seller. Buyer
    shall be responsible to pay for the recording fee for the deed, Buyer’s attorneys fees, one-half of the customary
    escrow or closing fees charged by the title company, Buyer’s title insurance endorsements, if any, Buyer’s tests
    and inspections and survey, if any, and such other expenses provided herein or customarily to be paid by Buyer.

9. CLOSING: Closing of the transaction contemplated here (“Closing”) shall occur at such time as mutually
   agreed by the parties, provided that the date shall be no later than August 17 , 2009, unless such requirement
   is waived in writing by both parties and a new date substituted therefore. Closing shall occur at the offices of
   Johnson County          Title Company.

10. POSSESSION: Possession shall be delivered AT CLOSING.

11. ATTACHED FIXTURES AND EQUIPMENT: Unless specifically excluded by an addendum attached hereto
    and initialed by both parties, all fixtures attached to the real estate included in the Property, if any, are a part of
    the Property being conveyed pursuant hereto and included in the Purchase Price.

12. AS IS: BUYER ACKNOWLEDGES AND AGREES THAT SELLER HAS NOT MADE, DOES NOT MAKE,
    AND SPECIFICALLY NEGATES AND DISCLAIMS ANY REPRESENTATIONS, WARRANTIES
    (OTHER THAN THE WARRANTY OF TITLE AS SET OUT IN THE WARRANTY DEED AND AS
    EXPRESSLY SET FORTH IN THIS AGREEMENT), PROMISES, COVENANTS, AGREEMENTS OR
    GUARANTIES OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER EXPRESSED OR
    IMPLIED, ORAL OR WRITTEN, PAST, PRESENT OR FUTURE, OF, AS TO , CONCERNING OR WITH
    RESPECT TO (i) THE VALUE, NATURE, QUALITY OR CONDITION OF THE PROPERTY,
    INCLUDING, WITHOUT LIMITATION, THE WATER, SOIL AND GEOLOGY; (ii) THE INCOME TO BE
    DERIVED FROM THE PROPERTY; (iii) THE SUITABILITY OF THE PROPERTY FOR ANY AND ALL
    ACTIVITIES AND USES WHICH BUYER OR ANYONE ELSE MAY CONDUCT THEREON; (iv) THE
    COMPLIANCE OF OR BY THE PROPERTY OR ITS OPERATION WITH ANY LAWS, RULES,
    ORDINANCES OR REGULATIONS OF ANY APPLICABLE GOVERNMENTAL AUTHORITY OR
    BODY; (v) THE HABITABILITY, MERCHANTABILITY, MARKETABILITY, PROFITABILITY OR
    FITNESS FOR A PARTICULAR PURPOSE OF THE PROPERTY; (vi) THE MANNER OR QUALITY OF
    THE CONSTRUCTION OR MATERIALS, IF ANY, INCORPORATED INTO THE PROPERTY; (vii) THE
    MANNER, QUALITY, STATE OF REPAIR OR LACK OF REPAIR OF THE PROPERTY; OR (viii) ANY
    OTHER MATTER WITH RESPECT TO THE PROPERTY, AND SPECIFICALLY, THAT SELLER HAS
    NOT MADE, DOES NOT MAKE AND SPECIFICALLY DISCLAIMS ANY REPRESENTATIONS
    REGARDING COMPLIANCE WITH ANY ENVIRONMENTAL PROTECTION, POLLUTION, ZONING
    OR LAND USE LAWS, RULES, REGULATIONS, ORDERS OR REQUIREMENTS, INCLUDING THE
    EXISTANCE IN OR ON THE PROPERTY OF HAZARDOUS MATERIALS EXCEPT AS AND AS
    EXPRESSLY SET FORTH IN THIS AGREEMENT. BUYER FURTHER ACKNOWLEDGES AND
    AGREES THAT, HAVING BEEN GIVEN THE OPPORTUNITY TO INSPECT THE PROPERTY, BUYER
    IS RELYING SOLELY ON ITS OWN INVESTIGATION OF THE PROPERTY AND NOT ON ANY
    INFORMATION PROVIDED OR TO BE PROVIDED BY SELLER. BUYER FURTHER




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    ACKNOWLEDGES AND AGREES THAT ANY INFORMATION PROVIDED OR TO BE PROVIDED
    WITH RESPECT TO THE PROPERTY WAS OBTAINED FROM A VARIETY OF SOURCES ; THAT
    SELLER HAS NOT MADE ANY INDEPENDENT INVESTIGATION OR VERIFICATION OF SUCH
    INFORMATION; AND THAT SELLER MAKES NO REPRESENTATIONS AS TO THE ACCURACY OR
    COMPLETENESS OF SUCH INFORMATION. SELLER IS NOT LIABLE OR BOUND IN ANY MANNER
    BY ANY VERBAL OR WRITTEN STATEMENTS, REPRESENTATIONS, OR INFORMATION
    PERTAINING TO THE PROPERTY, OR THE OPERATION THEREOF, FURNISHED BY ANY REAL
    ESTATE BROKER, AGENT, EMPLOYEE, SERVANT, OR OTHER PERSON. BUYER ACKNOWLEDGES
    THAT NO REAL ESTATE BROKER, AGENT, EMPLOYEE, SERVANT, OR OTHER PERSON HAS
    MADE ANY SUCH STATEMENTS OR REPRESENTATIONS UPON WHICH BUYER IS RELYING.
    BUYER FURTHER ACKNOWLEDGES AND AGREES THAT TO THE MAXIMUM EXTENT
    PERMITTED BY LAW, THE SALE OF THE PROPERTY AS PROVIDED FOR HEREIN IS MADE ON AN
    “AS-IS” CONDITION AND BASIS WITH ALL FAULTS. IT IS UNDERSTOOD AND AGREED THAT
    THE PURCHASE PRICE HAS BEEN ADJUSTED BY PRIOR NEGOTIATION TO REFLECT THAT THE
    PROPERTY IS SOLD BY SELLER AND PURCHASED BY BUYER SUBJECT TO THE FOREGOING.
    ALL PROVISIONS OF THIS SECTION 12 SHALL SURVIVE CLOSING OR THE TERMINATION OF
    THIS AGREEMENT WITHOUT CLOSING, AS APPLICABLE.

13. RISK OF LOSS: The risk of loss or damage to the property by fire or other casualty occurring up to the time of
    Closing is assumed by Seller.

14. DUAL AGENCY: Seller and Buyer hereby acknowledge that United Country/Kraatz Realty is acting as a dual
    agent in this transaction and representing both the Buyer and Seller in the purchase and sale of the above
    referenced Property. By their initials hereafter, each Seller and Buyer confirm that they have previously
    consented to United Country/ Kraatz Realty (“Licensees”) acting as Dual Agent (as that term is defined in the
    Illinois Real Estate License Act of 2000) in providing brokerage services on their behalf and specifically
    consent to Licensees acting as Dual Agent in regard to the transaction referred to in this Agreement. Each party
    further acknowledges receipt of Addendum “A”, attached hereto, which expressly sets forth the actions
    Licensees may take and not take as a Dual Agent.

                                  Seller _________                 Buyer _________

15. MERGER CLAUSE: This Agreement, when executed by both Buyer and Seller, shall contain the entire
    understanding and agreement between the Buyer and Seller, with respect to all matters referred to herein and
    shall supersede all prior or contemporaneous agreements, representations, discussions and understandings, oral
    or written, with respect to such matters. This Agreement shall not, however, supersede any agency agreement
    entered into by Buyer or Seller and Licensee.

16. NONDISCRIMINATION: THE PARTIES UNDERSTAND AND AGREE THAT IT IS ILLEGAL FOR
    EITHER OF THE PARTIES TO REFUSE TO SELL THE PROPERTY TO ANY PERSON ON THE BASIS
    OF RACE, COLOR, RELIGION, SEX, NATIONAL ORIGIN, ANCESTRY, AGE, MARITAL STATUS,
    FAMILIAL STATUS, PHYSICAL OR MENTAL HANDICAP, MILITARY STATUS OR UNFAVORABLE
    DISCHARGE FROM MILITARY OR ANY OTHER CLASS PROTECTED BY ARTICLE 3 OF THE
    ILLINOIS HUMAN RIGHTS ACT. THE PARTIES AGREE TO COMPLY WITH ALL APPLICABLE
    FEDERAL, STATE, AND LOCAL FAIR HOUSING LAWS.



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17. LITIGATION/MEDIATION/ARBITRATION: Notwithstanding anything in this Agreement to the contrary,
    Buyer and Seller agree that any dispute or claim arising out of or relating to this Agreement, the breach of this
    Agreement, or the services provided in relation to this Agreement shall be submitted to mediation in accordance
    with the Rules and Procedures of the Commercial Dispute Resolution System of the United States Arbitration
    and Mediation. Any agreement signed by the parties pursuant to the mediation conference shall be binding. The
    parties further agree that any controversy or claim arising out of or in relation to this Agreement, or any breach
    thereof, which is not resolved by mediation, whatever the cause or reason, or which is not subject to mediation
    under the terms of this Agreement, shall be settled by binding arbitration, in accordance with the
    COMMERCIAL RULES OF THE UNITED STATES ARBITRATION & MEDIATION or the then relevant
    rules of the United States Arbitration & Mediation. If one of the parties so elects such arbitration, the award
    rendered by the arbitrator(s) may be entered as a judgment in any court having jurisdiction thereof. The election
    to arbitrate may be made at any time after attempts at mediation have failed but not later than thirty (30) days
    after the receipt of summons in the event suit is filed by an opposing party. Failure to make a timely election to
    arbitrate will constitute an absolute waiver of the right to arbitrate. The notice of election to arbitrate shall be on
    the form formally used by the United States Arbitration & Mediation. The arbitration and/or mediation
    conference shall be conducted by the United States Arbitration & Mediation at a location chosen by United
    States Arbitration & Mediation. The filing of a judicial action to enable the recording or a notice of pending
    action, or for order of attachment, receivership, injunction, or other provisional remedy, shall not constitute a
    waiver of the right to mediate and/or arbitrate under this provision nor shall it constitute a breach of the duty to
    mediate and/or arbitrate.

18. INITIALS: The parties have initialed each of the pages of the Agreement. Initialing each of such pages merely
    acknowledges that the parties have read and understand the content of such page. Failure to initial all of the
    pages of this Agreement shall not be cause to invalidate this Agreement if all other conditions to the formation
    of the Agreement are satisfied.

19. EXPIRATION OF OFFER: This offer shall expire unless accepted in writing by Seller before 5:00 p.m. on
    July 14   , 2009.




    Remainder of page is intentionally blank. Please proceed to signature page.



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    Seller Initials ________ Purchaser Initials________
   THIS AGREEMENT CONTAINS ARBITRATION PROVISION THAT MAY BE                           ENFORCED
   BY THE PARTIES HERETO.

                                            SELLER:

                                            _____________________________________________________
                                            By:             Date

                                            _____________________________________________________
                                            By:             Date



         The above offer is accepted ________________________________, 2009 at ___________ AM/PM.

                                            BUYER:

                                            _____________________________________________________
                                            By:             Date

                                            _____________________________________________________
                                            By:             Date




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                                                   ADDENDUM “A”


   DUAL REPRESENTATION:
   United Country/Kraatz Realty (collectively, “Brokers”) and Dann R. Kraatz or any properly licensed broker or
   salesperson licensed with United Country/Kraatz Realty          (“Designated Agent” and, collectively with
   Brokers, “Licensees”) may undertake a dual representation (represent both the Seller and Buyer) to sell,
   exchange, lease or grant an option to purchase the Property described in the attached Agreement. Each party
   hereby acknowledges and affirms that they have been informed of the possibility of dual representation and of
   the potential conflict of interest created thereby.
   Before signing this Addendum “A”, please read the following:

   Representing more than one party to a transaction presents a conflict of interest since both clients may rely upon
   Licensees’ advice and the client’s respective interests may be adverse to each other. Licensees will undertake
   this representation only with the written consent of ALL clients in the transaction. Each party’s execution
   hereof constitutes such consent by such party. Any agreement between the clients as to a final contract price and
   other terms is a result of negotiations between the clients acting in their own best interests and on their own
   behalf. By executing this Addendum “A”, each party hereby acknowledges that (i) Licensees have explained the
   implications of dual representation, including the risks involved, and (ii) they have been advised to seek
   independent advice from their advisors or attorneys before signing any documents in this transaction.

   WHAT A LICENSEE CAN DO FOR CLIENTS WHEN ACTING AS A DUAL AGENT:
   1. Treat all clients honestly. 2. Provide information about the Property to the Buyer or tenant. 3. Disclose all
   latent material defects in the Property that are known to Licensee. 4. Disclose financial qualification of the
   Buyer or tenant to the Seller or landlord. 5. Explain real estate terms. 6. Help the Buyer or tenant to arrange for
   property inspections. 7. Explain closing costs and procedures. 8. Help the Buyer compare financing alternatives.
   9. Provide information about comparable properties that have sold so both clients may make educated decisions
   on what price to accept or offer.

   WHAT A LICENSEE CANNOT DISCLOSE TO CLIENTS WHEN ACTING AS A DUAL AGENT:
   1. Confidential information that Licensee may know about the client, without that client’s permission. 2. The
   price the Seller or landlord will take other than the listing price, without permission of the Seller or landlord. 3.
   The price the Buyer or tenant is willing to pay, without permission of the Buyer or tenant. 4. A recommended or
   suggested price the Buyer or tenant should offer or accept. 5. A recommended or suggested price the Seller or
   landlord should counter with or accept.

   If either client is uncomfortable with this disclosure and dual representation, please let Licensee know. You are
   not required to sign this document unless you want to allow Licensee to proceed as a Dual Agent in this
   transaction. By signing below, you acknowledge that you have read and understand this form and voluntarily
   consent to Licensee acting as a Dual Agent (that is, to represent BOTH the Seller or landlord and the Buyer or
   tenant).


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         AUTHORIZATION FOR DUAL AGENCY:

             SELLER:                                  BUYER:




             Print Name: _________________________    Print Name: _____________________

             Date: ______________________________     Date: ___________________________

             ____________________________________     ________________________________

             Print Name: _________________________    Print Name: _____________________

             Date: ______________________________     Date: ___________________________




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Notes
                                          Dann R. Kraatz
                                             Broker/Owner
                                        Cell: (618) 697-4069
                              E-Mail: kraatzrealty@verizon.net

United Country/Kraatz Realty and Auction Services is a full service real estate agency and
auction service with property management of farm and recreational properties offered through
Dann R. Kraatz Farms, Inc. (DRKF, Inc.) Dann also owns an excavation business and
specializes in creation of shallow water wetlands.



AGENCY DISCLOSURE

United Country/Kraatz Realty and Auction Service is the agent of the owner of the property described
within this property offering.

The management of United Country/Kraatz Realty and Auction Service must be present to conduct a
showing. Management respectfully requests that prospective Buyers contact us in advance to schedule a
proper showing or to obtain permission to conduct their own personal inspection and that prospective
Buyers do not attempt to tour or trespass the property without specific permission. Thank you.

Offering subject to errors, omissions, change or withdrawal without notice. All information provided
herein is intended as a general guideline and has been provided by sources deemed reliable, but the
accuracy of which we cannot guarantee.




                            United Country Kraatz Realty and Auction Service
                                        1955 State Route 146 East
                                            Anna, Illinois 62906
                                 (618) 833-3372 kraatzrealty@verizon.net
                                      Dann R. Kraatz (618) 697-4069

                                       WWW.ANNA-ILLINOIS.COM

								
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