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PURCHASE AGREEMENT
THIS IS A LEGALLY BINDING CONTRACT BETWEEN
PURCHASER AND SELLER
IF YOU DO NOT UNDERSTAND IT, SEEK LEGAL ADVICE
1. PARTIES TO CONTRACT - PROPERTY. Purchaser and Seller acknowledge that Broker is_______ is not______ the limited agent of both parties to this transaction as outlined in Section III of the Agency Agreement Addendum as authorized by Purchaser and Seller.
________________________________________________________________, hereinafter referred to as
Purchaser, offers and agrees to purchase from ________________________________________________, hereinafter referred to as Seller, upon the terms and conditions set forth, the property legally described as:
also known as___________________________________________________________________________
2. EARNEST MONEY DEPOSIT. Earnest Money in the amount of ($______________) _______________________________________________________DOLLARS Cash_____ Check_____, unless otherwise noted herein, shall be deposited into the trust account of the listing _____ selling _____ broker on the next legal banking day after acceptance of this offer.
Other earnest money provisions: ___________________________________________________________
3. PURCHASE PRICE. The total purchase price is to be ($_____________________) _____________________________________________________________________________DOLLARS After earnest money herein is credited, the remaining balance is to be paid by Purchaser at closing. 4. F INANCING.
□ New Mortgage. This offer is contingent upon Purchaser obtaining a new
□ VA, □ FHA, □ SDHDA, □ Conventional, or □ ____________________________ type of loan.
A letter of Purchaser’s loan status from __________________________________________________
□ is attached or □ will be delivered by _____________________________(date).
Within ____ legal banking days after acceptance of this Agreement, Purchaser will make application for and diligently and in good faith endeavor to secure a new loan, pay all application fees, and to sign all financing documents without delay. Purchaser reserves the right to obtain alternative financing as long as there are no increased costs to Seller.
□ Assumption. See attached Addendum.
□ Contract for Deed/Private Mortgage. See attached Addendum.
□ Cash. This is a cash offer. The remaining balance of $______________ will be paid at closing by
certified check. A letter of verification from
regarding the availability of funds □ is attached □ will be delivered by _______________ (date) or
this agreement, at the option of Seller without notice to Purchaser may be voided.
INITIALS: PURCHASER________/________SELLER________/_________
5. APPRAISAL. This offer is _______ is not________ subject to the property appraising for at least the purchase price. If the appraisal reveals repairs, which must be made, Purchaser and Seller will negotiate which party will complete those repairs for any re-inspection fees. If the appraisal is less than the agreed purchase price, Purchaser and Seller may renegotiate the purchase price. Appraisal □ will / □ will not be ordered prior to removal of home inspection contingency. 6. SALE OF PURCHASER'S PROPERTY
A. □ This offer is not contingent upon the sale or close of property owned by Purchaser. B. □ This offer is contingent upon the sale and close of Purchaser’s property located at
(address, including city & state)_____________________________________________________
□ within ________ days or □ within the time specified for closing the Seller’s property. Seller shall have the right to continue to offer the property for sale and accept any offers subject to the rights of Purchaser. If Seller accepts another offer, Seller will give Purchaser written notice of that fact. Within ________ days of receipt of the notice, Purchaser will provide a written waiver of the contingency on the sale and close of Purchaser’s property or this agreement will terminate without further notice and deposits will be returned according to paragraph 15 of this agreement. Upon waiver of this contingency, Purchaser warrants and will provide proof that the funds needed for closing will be available and Purchaser’s ability to obtain financing is not contingent upon the sale and/or close of any property.
7. SELLER'S PROPERTY DISCLOSURE. Purchaser acknowledges receipt of Seller's property condition disclosure statement dated ____________________ as required by SDCL 43-4-38 through 43-4-57 prior to signing this agreement. (initials)_________/___________ Purchaser acknowledges that no disclosure statement is required by reason of the following: ______________________________________________________________________________________ 8. LEAD-BASED PAINT DISCLOSURE. Purchaser acknowledges receipt of the pamphlet "Protect Your Family From Lead In Your Home" and the Seller's lead-based paint and lead-based paint hazards form according to the Residential Lead-Base Hazard Reduction Act of 1992. This applies only to properties built prior to 1978. (initials)_________/___________ 9. INSPECTION OF PHYSICAL CONDITION OF PROPERTY. Purchaser acknowledges that it has been recommended that Purchaser engage, at Purchaser’s expense, the services of a professional inspector acting within the scope of the inspector’s professional license to inspect the property (initials)__________/__________.
Purchaser and Seller understand the purpose of a property inspection is to inform and educate Purchaser of conditions and future maintenance of property and is not designed to be a point of renegotiation of the purchase price.
This offer □ is / □ is not contingent upon Purchaser, at Purchaser’s expense, obtaining a property inspection(s) and report(s) which may include, but not be limited to the physical, structural, mechanical, pest, geological and environmental contamination conditions relating to the property. These inspection options will be completed and written notice of the results given to Seller or Seller’s agent within ____ business days of acceptance of this agreement. If the inspection(s) has not been completed within the specified time, Purchaser’s option to have the inspection(s) shall expire and all other terms of this Purchase Agreement will continue unaffected.
INITIALS: PURCHASER________/________SELLER________/_________
14. CLOSING/POSSESSION. Closing date will be on or before ____________________ with possession to be given Purchaser at time of closing. Seller agrees to maintain the property in a condition comparable to its present condition and agrees that Purchaser will have the opportunity for a personal inspection prior to closing. Seller agrees to maintain all existing insurance coverage on property until time of closing.
Closing service fees, if any, cost to be distributed as follows: Purchaser_________ Seller___________.
All personal property, including refuse, not included in the purchase price, shall be removed by Seller prior to closing.
15. EARNEST MONEY/DEPOSITS. The broker, as specified in Section 2, shall deposit and hold all earnest money and other deposits until sale is closed. If an accepted offer and agreement to purchase does not close, regardless of the circumstances, both Purchaser and Seller must agree in writing prior to release of earnest money or in the alternative, pursuant to court order in accordance with SDCL 36-21A-81. 16. AGREEMENT TO MEDIATE. Any dispute or claim arising out of or relating to this contract will be submitted to mediation, if available, in accordance with the rules and procedures of the Sellers/Purchasers Dispute Resolution System. Otherwise, mediation will be submitted to a private mediation service. Any costs of mediation will be shared equally between Purchaser and Seller. Yes______ No______ Purchaser________/_________ (initials) 17. PERSONAL PROPERTY. Any personal property, free of liens and without warranty of condition, shall
be transferred to Purchaser by a separate bill of sale. Purchaser □ will / □ will not compensate seller for fuel oil/propane remaining on date of closing.
18. OTHER PROVISIONS: ___________________ ______________________________________________
18. ADDENDA TO THIS AGREEMENT. The following documents are addenda to this contract and are
attached and become part of this contract by reference. If none, so state.
19. This agreement is void if not accepted by Seller by the ____________ day of ______________________ , ________ by _________ a.m./p.m. 20. The laws of South Dakota govern this transaction.
INITIALS: PURCHASER________/________SELLER________/_________
21. TIME IS OF THE ESSENCE OF THIS CONTRACT.
Dated this ______day of__________________, _________at________a.m./p.m.
Purchaser Purchaser On this _______day of____________________________, _________ the foregoing offer is: (Initial) ACCEPTED_________/__________ NOT ACCEPTED_________/__________ COUNTERED_________/__________
__________________________________________ ___________________________________________
Seller Seller
THE FOLLOWING IS FOR INFORMATION PURPOSES ONLY :
Selling Company Selling Licensee
Listing Company Listing Licensee
