Purchase Agreement (Page 5 of 8) in pdf

Community Land Trusts:

Sample Purchase Agreement

Ground Lease [and Restrictive Covenants Agreement] Contingency:

The Land will be leased to Buyer under the Ground Lease to be executed at Closing between Seller and Buyer

in the form provided to Buyer by Seller within five (5) days after the Effective Date (subject to any changes that

may be agreed to by both Buyer and Seller). Before Seller will convey title to the Improvements and enter into

the Ground Lease with Buyer and before Buyer is obligated to purchase the Improvements and enter into the

Ground Lease, Buyer must review and agree to the terms of the Ground Lease [and the Restrictive Covenants

Agreement] and return a signed copy of the “Letter of Acknowledgment” (see Exhibit B of the Ground Lease)

to Seller no later than the time of closing. Additionally, Buyer’s attorney must review the terms of purchase

under this Agreement and the Ground Lease [and the Restrictive Covenants Agreement] and discuss them with

Buyer to ensure that Buyer clearly understands the terms of the transaction and the “Attorney’s Declaration”

(see Exhibit C of the Ground Lease) and return a signed copy of the Attorney’s Declaration to Seller no later

than the time of closing.

Buyer Eligibility Contingency:

In order for Buyer to qualify to purchase the Improvements under this Agreement, Buyer must be a “Low

or Moderate Income Family” (as defined below).

[Optional: Additionally, Buyer must be a “First Time

[Both of these/This] condition[s] must be true and accurate up to and

Homeowner” (as defined below).]

including the closing under this Agreement. In the event that [either of these/this] condition[s] is not met, then

this Agreement will terminate, and the Deposit will be returned to Buyer.

[“First Time Homeowner” shall mean: (a) either the husband(s) and/or wife(ves) has had no ownership

in a principal residence during the three (3) year period preceding the closing under this Agreement;

or (b) a single parent who has only owned a proportionate share with a former spouse while married;

or (c) an individual who is a displaced homemaker and has only owned a principal residence with a

spouse; or (d) an individual who has only owned a principal residence not permanently affixed to a

permanent foundation in accordance with applicable regulations; or (e) an individual who has only

owned a property that was not in compliance with State, local, or model building codes and which

cannot be brought into compliance for less than the cost of constructing a permanent structure.]

“Low or Moderate Income Family” shall mean a family whose income does not exceed fifty per cent (50%)

of the area median gross income, adjusted for family size. Family income shall be determined in a manner

consistent with determinations of lower income families and area median gross income under Section 8 of

the U.S. Housing Act of 1937, as amended (the “Section 8 -Program” If-the Section 8-Program is-terminated,

determinations under a comparable Federal or State of Michigan program identified by the Seller shall be used;

and if the Seller does not designate a comparable program, then determinations shall continue to be made under

the Section 8 Program regulations as in effect immediately before termination.

[CONFORM TO GROUND

MICHIGAN COMMUNITY RESOURCES

C O M M U N I T Y L A N D T R U S T: S A M P L E P U R C H A S E A G R E E M E N T

Purchase Agreement Page 5