This is my favor Buyer Favorable Sale agreement form that has made me good money over the years. This is a buyer favor purchase agreement is copy righted but feel free to use it at your own risk. I and good friend of my Ted put together about 10 years ago. Over the years we have updated it.
I use it with a buyer favorable option agreement. I have file out this one as sample of how I do it. Remember you only using the buyer favorable option agreement and this form when you have a person whose #1 objective is get rid of property. What I see with most investors is they are afraid to ask for the option and buyer favorable PA. Check it out. I have great products if you like it on my site http://www.MrLeaseOption.com I have option course where have all forms like this and step by step CD on how to fill them out. These day in our sue happy world I you need to give a disclaimer. So here is mine I am not attorney, or CPA. Real Estate is risky by it nature. So if you are going to use the attached form have it review by an attorney in your area.
THIS IS A BUYER FAVORABLE FORM:
BUY AND SELL AGREEMENT
RESIDENTIAL REAL ESTATE
Office of , BROKER, _____________________, Michigan Phone: , FAX: , Date: , 20 , a.m./p.m.
1. Agency. The undersigned Buyer and Seller each acknowledge that they have read and signed the Disclosure Regarding Real Estate Agency accompanying this agreement. (The Selling Broker/Salesperson is acting as (check one ): Subagent of the Seller Agent of the Buyer Dual Agent (with written, informed consent of both Buyer and Seller) Other (specify): .
2. Buyer’s Offer. The undersigned (“Buyer”) offers and agrees to purchase the property located in the City Twp. Village of , County of ______________________, Michigan, commonly known as: Property Address , Tax ID No.: _______________________________, and legally described as follows: ____Legal Address___________________________________ ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
(the “Land”), together with all buildings, fixtures and improvements appurtenant and situated on the Land (the “Improvements”), all of which is collectively referred to herein as the “Premises”. Also including: _____________________________________________________________________________________ Note: Property to be free of debris and in at least “broom clean” condition at closing.
3. Purchase Price. The purchase price is ____Write out the Purchase price ________________________________________________________ Dollars ($ _____________________). Any allocation of the purchase price between Land, Improvements, and Personal Property shall be stated on an attached Exhibit.
4. Terms of Payment shall be as indicated by “X” below (other unmarked terms of purchase do not apply).
Cash. The Buyer shall pay the full purchase price to the Seller upon execution and delivery of a warranty deed transferring good and marketable title.
New Mortgage. The Buyer shall pay the full purchase price to the Seller upon execution and delivery of a warranty deed and other documents which may be required to effect this sale, contingent upon the Buyer’s ability to obtain a _________________________________________________________________ type ____________________ year mortgage loan in the amount of $_________________________________ bearing interest at a rate no greater than _____________% per annum. The Buyer shall apply for the mortgage loan immediately and accept it promptly if tendered. If Buyer does not deliver to Seller on or before __________________________ , 20 ________ , proof that Buyer has accepted a mortgage loan commitment, Seller may thereafter at any time treat this contingency as not having been satisfied and terminate this Agreement by written notice to Buyer.
Land Contract Purchase Money Mortgage. The Buyer shall pay the full purchase price to the Seller pursuant to the terms and conditions stated in a standard form Land Contract or a Purchase Money Mortgage which the Seller shall execute at closing with all other required documents. The Land Contract or Purchase Money Mortgage shall provide a down payment of $ ____________________ with a starting principal balance of $ ____________________________ payable in Monthly Quarterly installments of $ ______________________ or more, at Buyer’s option, including interest at the rate of ______________% per annum. The entire principal balance, if not paid sooner shall be due and payable within _______________ Months Years.
Assumption of existing financing. Buyer to pay the sum of $ ______________________ to assume Sellers’ existing Mortgage Land Contract, which has a balance of $_____________________________ which buyer agrees to take subject to. Should the balance be found to be higher than stated herein, the difference shall be deducted from the amount paid to assume said mortgage/land contract. A complete copy of said mortgage/land contract shall be provided to Buyer within 3 days of Seller’s acceptance hereof for Buyers review and satisfaction as to the terms thereof. If Buyer is dissatisfied with said terms or conditions, Buyer may void this agreement within 7 days from his receipt of said documents by written notice to Seller or Seller’s agents. Seller agrees to transfer, assign or credit any and all sums being held in escrow under the mortgage/land contract to Buyer at no cost to buyer. Further, it is agreed and understood that the presence of a “due on sale” clause in said mortgage/land contract shall not act to void or in any way affect this contract. Seller understands that consummation of the sale or transfer of the Premises shall not relieve the Seller of any liability that the Seller may have under the Land Contract or any Mortgage(s) to which the premises are subject, unless otherwise agreed to by the vendor or lender or required by law or regulation.
5. Survey. A new re-certified existing ALTA survey shall be provided promptly by Seller at Seller’s sole expense. No survey.
6. Possession. Seller shall tender to Buyer the Premises within ___________ days from the closing X Immediately upon completion of the closing. Upon Seller’s acceptance, or Buyer’s acceptance of a counter offer, and during the time until closing of this sale, Buyer shall have the right to enter upon the Premises during reasonable business hours for purposes of inspections, tests, to show the property to potential tenants or purchasers for re-sale by Buyer. If the premises are vacant, Buyer shall be provided with a set of keys upon acceptance of this offer. If Seller occupies the property after closing, Seller shall pay Buyer rent as detailed in an attachment hereto.
7. Earnest Money. Buyer gives ____________________________________________________________, BROKER, ________________ days to obtain the written acceptance of this offer and agrees that this offer, when accepted by Seller, will constitute a binding agreement between Buyer and Seller. Buyer deposits $_________0____________ Upon Final Acceptance or Cash, check or money order with BROKER, evidencing Buyer’s good faith, to be held by the BROKER and to apply on the purchase price. If this offer is not accepted or the title is not marketable or if the purchase is contingent upon conditions specified which cannot be met, this deposit shall be promptly refunded. If the Buyer defaults, all deposits made may be forfeited as liquidated damages at Seller’s election or, alternatively, Seller may retain the deposits as part payment of the purchase price and pursue Seller’s legal or equitable remedies against Buyer. If the sale is not closed according to its terms, the selling BROKER may notify Buyer and Seller of BROKER’S intended disposition of the earnest money deposit, and all parties shall be deemed to have agreed to the disposition of the earnest money deposit unless BROKER is notified of a court action pending concerning this sale or disposition of earnest money within sixty (60) days after notice to the parties.
See paragraphs 8 through 19 continued on the reverse side
ALL PARTIES ARE ADVISED TO SEEK THE COUNSEL OF AN ATTORNEY & ACCOUNTANT TO PROTECT THEIR INTERESTS IN THIS TRANSACTION
30. By signing below, Buyer acknowledges having read both front and back and receiving a copy of this document.
Witness: ______________________________________________________ Buyer: _________________________________________________________
Buyer’s address: _______________________________________________ Buyer: _________________________________________________________
_____________________________________________________________ SS# or EIN: _____________________________________________________
31.Brokerage Fee. Seller agrees to pay the broker(s) involved in this transaction a brokerage fee as specified in any agency agreement or other written agreement between them. In the event no such agreement exists, Seller agrees to pay a brokerage fee of _______________________________________ to be split on a ________% / ________% between the Listing and Selling Brokers respectively, if applicable. This brokerage fee shall be paid in full promptly after it is earned, but not later than any applicable closing. Unless otherwise previously agreed, Buyer and/or Seller agrees that the brokerage fee may be shared by the recipient with any cooperating broker who participates in the sale, in such amount as the recipient decides, without further disclosure to or consent from Buyer and/or Seller. In the event the amount listed in this clause as the fee/commission is higher than any prior agreements with Seller, this clause shall take precedence.
32. This offer is accepted _________________________________________________________________________________________________________
_______________________________________________________________________________________________________________________________
33. By signing below, Seller acknowledges having read both front and back and receiving a copy of this document.
Witness: ______________________________________________________ Seller: ____Seller’s Signs_________________________________________
Date: ________________________________________________________ Seller: _________________________________________________________
Seller’s address: _______________________________________________ SS# or EIN: _____________________________________________________
34. Buyer acknowledges receipt of Seller’s acceptance. If acceptance was subject to changes, Buyer hereby agrees to said changes, all other terms remain the same.
Witness: ______________________________________________________ Buyer: _________________________________________________________
Date: ________________________________________________________ Buyer: _________________________________________________________
35. Seller acknowledges receipt of Buyer’s acceptance of the counter offer (If Seller made a counter-offer).
Witness: ______________________________________________________ Seller: ____Seller’s Signs_________________________________________
Date: ________________________________________________________ Seller: _________________________________________________________
1/23/05BF
Continued from front page
8. Property Taxes, prorations and adjustments. Seller shall pay delinquent property taxes. Seller will pay the current year’s property taxes. There will be no proration of taxes. Special Assessments which are due and payable, or a lien or both, on the property on or before the above date shall be paid by Seller. All other special assessments, including deferred assessments, for improvements, now installed or in the process of being installed, but not yet a lien shall be paid by Buyer. Any security deposits from tenants shall be given to the Buyer at closing. Seller up to the date of closing shall pay all outstanding water bills. Seller agrees to escrow $1,500.00 with the title company until the final water bill is received and proof of payment is made.
9. Title Insurance. At Seller’s expense, Seller shall provide Buyer with a standard ALTA owner’s policy of title insurance in the amount of the purchase price, effective as of the date of closing. A commitment to issue such policy insuring marketable title vested in Buyer, including a tax status report, shall be made available to Buyer.
10. Closing. The closing shall be held on or before __________________________, 2006 and as promptly as practical after all necessary documents have been prepared. An additional period of sixty (60) days shall be allowed for closing to accommodate delays in title work or the correction of title defects which can be readily corrected, delays in obtaining any required inspections, surveys or repairs, if the terms of purchase require participation of a lender and the lender has issued a commitment consistent with the requirement but is unable to participate in a closing on or before the required date or if Buyer requires additional time to review the closing documents at his sole option. Seller shall pay all costs of closing.
11. Inspection of the premises, c The Buyer waives the right to an inspection of the premises. c The Buyer elects to have the premises inspected at Buyer’s sole cost and expense as to the mechanical systems, electrical and structural, including roof. The Buyer shall have the right to terminate this Agreement if the inspection reports are not acceptable to the Buyer by giving Seller written notice within _______________ calendar days after this Agreement is fully executed, otherwise the right to terminate shall be deemed to have been waived.
Buyer agrees that Buyer is not relying on any representation or statement made by any real estate salesperson (whether made intentionally or negligently) regarding any aspect of the Premises or this sale transaction, except as may be expressly set forth in this Agreement, a written amendment to this Agreement, or a disclosure statement separately signed by the Seller. Accordingly, Buyer agrees to accept the Premises “as is”, except as otherwise provided in this agreement.
12. Warranties of Seller. Except as otherwise provided in this Agreement, Seller represents and warrants to, and agrees with Buyer as follows:
a. Seller’s interest in the Premises shall be transferred to Buyer on the closing date, free from liens, encumbrances and claims of others.
b. The performance of the obligations of Seller under this Agreement will not violate any contract, indenture, statute, ordinance, judicial or administrative order or judgment applicable to Seller or the Premises except as otherwise stated herein.
c. There is no litigation or proceeding pending or to the Sellers knowledge threatened, against or involving the Seller or the Premises, and the Seller does not know or have reason to know of any ground for any such litigation or proceeding which could have an adverse impact on Buyer or Buyer’s title to and use of the Premises, before or after closing.
d. Seller shall continue to operate the Premises in the ordinary course of business and maintain the Premises in a state of good condition and repair during the interim between the signing of this Agreement and the closing date.
e. With respect to underlying land contracts or mortgages, the sale will not accelerate indebtedness, increase interest rates, or impose penalties and sanctions, this clause shall have no effect in the case of an assumption under Paragraph 4 herein, in which case Seller shall disclose any accelerations, penalties, etc. that may result from said assignment.
f. To the best of Seller’s knowledge, there are no storage tanks, toxic or hazardous substances or other factors present, which represent a real or potential environmental contamination on the premises.
g. The premises comply with all current building codes, use and zoning ordinances and rental licensing/registration, if applicable. Further, that the Seller has disclosed any violations of the same to Buyer.
13. Damage to Premises. If between the date of this Agreement and the closing date, all or any part of the Premises is damaged by fire or natural elements or other causes beyond the Seller’s control which cannot be repaired prior to the closing date, or any part of the Premises is taken, pursuant to any power of eminent domain, Seller shall immediately notify Buyer of such occurrence, and Buyer, at his sole option may terminate this Agreement by written notice to the Seller within fifteen (15) days after the date of the damage or taking. If Buyer elects not to terminate this Agreement, there shall be no reduction of the purchase price and at closing Seller shall assign to Buyer whatever rights in totality Seller may have with respect to any insurance proceeds or eminent domain award.
14. Notices. Unless otherwise stated in this Agreement, a notice required or permitted by this Agreement shall be sufficient if in writing and either delivered personally or by certified mail or other form of documentable delivery addressed to the parties or their agents at their addresses specified herein, and any notices given by mail shall be deemed to have been given as of the date of the postmark.
15. Assignment by Buyer of Buyer’s interest in this agreement shall not be prohibited in any way, nor is notice required to Seller should said assignment occur. Seller hereby waives the right to review the creditworthiness or financial information of any assignee of this agreement.Buyer is an investor. In the event of an assignment, buyer may charge a fee.
16. Additional Acts. Buyer and Seller agree to execute and deliver such additional documents and to perform such additional acts as may become necessary to effectuate the transfers contemplated by this Agreement.
17. Entire Agreement. This Agreement contains the entire agreement of the parties with respect to the sale of the Premises. All contemporaneous or prior negotiations have been merged into this Agreement. This Agreement may be modified or amended only by written instrument signed by the parties to this Agreement. This Agreement shall be governed by and construed in accordance with the laws of the State of Michigan. This agreement and the covenants herein shall bind and inure to the benefit of the successors, heirs, administrators and assigns of the parties hereto. This agreement shall survive the closing.
18. Credit Reports. It is agreed and understood by all parties that this offer and attachments grant no authority to Seller or Seller’s agents to investigate Buyer’s creditworthiness, including, but not limited to credit reports, financial information or solicitation of references unless specifically agreed to in writing by Buyer.
19. Claim of Interest. It is agreed and understood by all parties that Buyer may, at his/her/it’s sole option file and register a claim of interest or a memorandum of this purchase agreement with the Register of Deeds for the county in which the subject property is located.
20. Attorney Approval. It is agreed and understood by all parties that either Buyer or Seller’s attorney may review this offer and attachments within _0(if doing an option) if doing a straight PA then 3-5 days in here__ days from the date of final acceptance hereof. If, upon advice of counsel, either party seeks to cancel this agreement, they may do so in writing to the other party within one day from the last date allowed for such review by delivery in person.
21. Disclosures. Seller has provided the following disclosures to the Buyer: c Lead base paint c Seller’s disclosure.
22. Home Warranty. It is agreed and understood by all parties that the Buyer has had the opportunity to obtain a home warranty on the property and has declined.
23. If checked: c Buyer is a Michigan Licensed Real Estate Agent or Broker and may be receiving a commission on this transaction. Further, Seller understands and agrees that the Buyer is buying this property for the purpose of rental or resale for a profit.
24. If checked: c This sale is subject to the Buyer obtaining approval by his partner within __________ days from Seller’s acceptance hereof.
25. 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.
26. The Seller agrees that this property will be resold and the resale is to be conducted under the complete control of the broker/Buyer/investor. The Seller’s will not in any way interfere with the conducting of the resale or commit any act to hinder or in any way diminish the effectiveness or success of the resale of this home. Should the Seller’s interfere with the conducting of the resale in any such way. The Seller’s shall be responsible to pay the broker/Buyer/investor/a fee of $2,000.00 for the default of this agreement
27. Lending Restrictions. The Buyer(s) and Seller(s) agree that Buyer(s) will disclose to Buyer(s) choice of Lender all relevant considerations regarding this purchase. In the event that Buyer (s) and Seller (s) agree that Buyer (s) is (are) to receive funds from this transaction for rehabilitation and renovation, Buyer (s) will only use a Lender that allows Buyer(s) to receive funds from the Seller (s) to cover allowable closing costs, permissible allowances and expenses of rehabilitation and renovation.
28. This Purchase agreement is void if Buyer(s) and/or their choice of Lenders knowingly violate State or Federal Laws that govern this transaction. If found in violation of applicable law, Buyer will forfeit their good faith deposit
29. Buyer and Seller are responsible for compliance with all applicable municipal authority regulations governing the location of this property.
______________________________________________________________________________________________________________________________
______________________________________________________________________________________________________________________________
__________ __________ Buyer’s Initials __________ __________ Seller’s Initials
1/23/05BF
Comments (0)Subscribe to CommentsComment