Form Tar 1601 - One To Four Family Residential Contract (Resale) (Page 6 of 9) in pdf

4-28-2014

Contract Concerning

Page 6 of 9

(Address of Property)

B. Leases:

(1)After the Effective Date, Seller may not execute any lease (including but not

limited to mineral leases) or convey any interest in the Property without

Buyer’s written consent.

(2)If the Property is subject to any lease to which Seller is a party, Seller shall

deliver to Buyer copies of the lease(s) and any move-in condition form signed

by the tenant within 7 days after the Effective Date of the contract.

11. SPECIAL PROVISIONS:

(Insert only factual statements and business details applicable to

the sale. TREC rules prohibit licensees from adding factual statements or business details for

which a contract addendum, lease or other form has been promulgated by TREC for mandatory

use.)

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: 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.

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 Seller fails to comply with this contract, 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.

Page 104 of 358

Page 101 of 358

Initialed for identification by Buyer

and Seller

TREC NO.

20-12

TAR 1601

Form Tar 1601 - One To Four Family Residential Contract (Resale) Page 6

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