Contract For Sale Of Real Estate (Page 6 of 8) in pdf

Contract For Sale Of Real Estate Page 6

Most printed real estate purchase contracts now contain an optional clause whereby the buyer and

seller agree to arbitrate disputes. Misguided real estate agents, blindly following recommendations

from their real estate trade groups, often suggest signing the arbitration clause. I strongly

disagree. Too many uncontrollable things can go wrong with arbitration of disputes. My

recommendation is don't agree to arbitration. If a dispute arises later, at that time you can decide

if you prefer to go to arbitration or mediation rather than become involved in a lawsuit.

•An all-inclusive weasel clause

Although the professional inspection contingency clause is sufficient, you might want to also

include an all-inclusive weasel clause such as "This purchase offer is contingent upon buyer's

attorney satisfactory inspection and approval of the purchase contract within 10 business days."

This gives you a "free look" while your attorney, CPA or other trusted business advisor reviews

the agreement.

Article 3. Purchaser's Mortgage Contingency

3.01 Application. If an amount is specified at item VIII, Purchaser will (promptly after this

Contract is signed) use best efforts to obtain a first mortgage on the Premises in that amount and

on the terms specified in section D-3.

3.02 Alternate Financing. If Purchaser is unable to obtain such commitment and gives notice

thereof to Seller by the time specified in or determined pursuant to section D-3-j, Seller may

within 21 days after the effective date of such notice by Purchaser (a) procure for Purchaser a firm

commitment from an institutional lender for a first mortgage loan meeting such terms or (b)

accept a Purchase Money Mortgage on such terms. If Seller does so within such additional 21-day

time period, item VIII and section D-3 will no longer apply; otherwise this Contract will terminate

and section 1 7.03 will apply.

3.03 A lender that makes any such loan is referred to herein as "Purchaser's Lender."

Article 4. Title Insurance and Condition of Title

4.01 Title Commitment. Promptly after the Execution Date Purchaser will apply (directly or

through Purchaser's Lender) for issuance by Title Insurer of a commitment for an owner's title

insurance policy.

a.The commitment is (i) to be in the amount of the Purchase Price, (ii) to include a zoni ng

endorsement that insures Purchaser that the existing structures on, and the present use of, the

Contract For Sale Of Real Estate Page 6