Farm And Ranch Contract (Page 6 of 9) in pdf

Contract Concerning

Page 6 of 9

8-01-2011

(Address of Property)

12. SETTLEMENT AND OTHER EXPENSES:

A. The following expenses must be paid at or prior to closing:

(1)Expenses payable by Seller (Seller's Expenses):

(a) Releases of existing liens, including prepayment penalties and recording fees; release of

Seller’s loan liability; tax statements or certificates; preparation of deed; one-half of

escrow fee; and other expenses payable by Seller under this contract.

(b) Seller shall also pay an amount not to exceed $

to be applied in the

following order: Buyer’s Expenses which Buyer is prohibited from paying by FHA, VA,

Texas Veterans Land Board or other governmental loan programs, and then to other

Buyer’s Expenses as allowed by the lender.

(2) Expenses payable by Buyer (Buyer's Expenses) Appraisal fees; loan application fees;

adjusted origination charges; credit reports; preparation of loan documents; interest on

the notes from date of disbursement to one month

prior to

dates of first monthly

payments; recording fees; copies of easements and restrictions; loan title policy with

endorsements required by lender; loan-related inspection fees; photos; amortization

schedules; one-half of escrow fee; all prepaid items, including required premiums for flood

and hazard insurance, reserve deposits for insurance, ad valorem taxes and special

governmental assessments; final compliance inspection; courier fee; repair inspection;

underwriting fee; wire transfer fee; expenses incident to any loan; Private Mortgage

Insurance Premium (PMI), VA Loan Funding Fee, or FHA Mortgage Insurance Premium

(MIP) as required by the lender; and other expenses payable by Buyer under this

contract.

B. If any expense exceeds an amount expressly stated in this contract for such expense to be paid

by a party, that party may terminate this contract unless the other party agrees to pay such

excess. Buyer may not pay charges and fees expressly prohibited by FHA, VA, Texas Veterans

Land Board or other governmental loan program regulations.

13. PRORATIONS AND ROLLBACK TAXES:

A. PRORATIONS: Taxes for the current year, interest, maintenance fees, assessments, dues and

rents will be prorated through the Closing Date. The tax proration may be calculated taking into

consideration any change in exemptions that will affect the current year's taxes. If taxes for the

current year vary from the amount prorated at closing, the parties shall adjust the prorations

when tax statements for the current year are available. If taxes are not paid at or prior to

closing, Buyer shall pay taxes for the current year. Rentals which are unknown at time of

closing will be prorated between Buyer and Seller when they become known.

B. ROLLBACK TAXES:

If this sale or Buyer’s use of the Property after closing results in the

assessment of additional taxes, penalties or interest (Assessments) for periods prior to closing,

the Assessments will be the obligation of Buyer. If Seller’s change in use of the Property prior

to closing or denial of a special use valuation on the Property claimed by Seller results in

Assessments for periods prior to closing, the Assessments will be the obligation of Seller.

Obligations imposed by this paragraph will survive closing.

14. CASUALTY LOSS: If any part of the Property is damaged or destroyed by fire or other casualty

after the effective date of this contract, Seller shall restore the Property to its previous condition

as soon as reasonably possible, but in any event by the Closing Date. If Seller fails to do so due to

factors beyond Seller’s control, Buyer may (a) terminate this contract and the earnest money will

be refunded to Buyer, (b) extend the time for performance up to 15 days and the Closing Date will

be extended as necessary or (c) accept the Property in its damaged condition with an assignment

of insurance proceeds and receive credit from Seller at closing in the amount of the deductible

under the insurance policy. Seller’s obligations under this paragraph are independent of any other

obligations of Seller under this contract.

15. DEFAULT: If Buyer fails to comply with this contract, Buyer will be in default, and Seller may (a)

enforce specific performance, seek such other relief as may be provided by law, or both, or (b)

terminate this contract and receive the earnest money as liquidated damages, thereby releasing

both parties from this contract. If, due to factors beyond Seller’s control, Seller fails within the

time allowed to make any non-casualty repairs or deliver the Commitment, or survey, if required

of Seller, Buyer may (a) extend the time for performance up to 15 days and the Closing Date will

be extended as necessary or (b) terminate this contract as the sole remedy and receive the

earnest money. If Seller fails to comply with this contract for any other reason, Seller will be in

default and Buyer may (a) enforce specific performance, seek such other relief as may be

provided by law, or both, or (b) terminate this contract and receive the earnest money, thereby

releasing both parties from this contract.

16. MEDIATION: It is the policy of the State of Texas to encourage resolution of disputes through

alternative dispute resolution procedures such as mediation. Any dispute between Seller and

Buyer related to this contract which is not resolved through informal discussion

will

will not be

submitted to a mutually acceptable mediation service or provider. The parties to the mediation

TREC NO. 25-8

Initialed for identification by Buyer

and Seller

American LegalNet, Inc.

Farm And Ranch Contract Page 6

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