Purchase Agreement (Page 4 of 9) in pdf

inspections and is purchasing the property in its existing condition. ______/______ initial.

Buyer_______/_______and Seller_______/_______ by initialing acknowledges they have read this page.

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Rev. 4/29/11

D. PEST INSPECTION:

Buyer at Buyers’ expense, or Seller in the case of a VA loan, shall have the property

inspected for termites or other wood destroying insects by a licensed Pest Inspector prior to closing. If active

infestation or damage due to prior infestation is discovered, Seller shall have the option of either having the

property

treated for infestation by a licensed pest exterminator and having any damage repaired with Buyers written

approval,

or canceling this agreement. Buyer agrees to accept the property after treatment and repairs. However, Buyer

may

accept the property in its existing condition without such treatment or repairs.

¨

Buyer waives pest inspection _______/_______ (initial).

E. NEW CONSTRUCTION: If the improvements on the subject property are under construction or are to be

constructed, this agreement shall be subject to approval of plans and specifications by the parties within ____

calendar days of final acceptance of this agreement. This offer to buy is not a construction contract. The contract

for

construction will be a separate agreement between the Contractor and Buyer which will set forth all of the terms,

conditions and specifications of the property to be constructed. Broker and agents make no warranties

as to the quality of construction, or materials or habitability.

F. WARRANTY PLAN:

¨

1. Buyer has been advised of a home warranty plan and will make their decision during the inspection

period.

¨

2. Seller to provide warranty coverage to be paid by Seller at closing in the amount not to exceed $______

¨

3. Buyer will provide warranty coverage if so desired.

¨

4. Buyer declines warranty coverage. _____/____(initial).

G. SURVEY: The Buyer may, prior to closing, have the property surveyed at Buyer’s expense. If the survey,

certified by a Registered Land Surveyor, shows any encroachment on said property or if any improvements located

on the subject property encroach on lands of others, such encroachments shall be treated as a title defect and

handled accordingly.

H. FLOOD HAZARD ZONE: If the property is in a flood hazard area it may be necessary to purchase Flood

Insurance in order to obtain financing. Buyer should consult a lender and insurance carrier to determine if the

property is in a flood hazard area.

Other provisions to be provided for in this agreement are as follows: __________________________________

___________________________________________________________________________________________

THIS AGREEMENT IS ALSO SUBJECT TO THE FOLLOWING TERMS AND CONDITIONS:

1. TRUST PAYMENTS: Buyer authorizes the company financing this purchase to pay all funds to Broker or

independent third party for the benefit of Seller. Seller authorizes Broker to accept and manage payments and

disbursements. At time of settlement, funds of the purchase price may be used to pay taxes, other liens, and

closing

costs to comply with the above requirements, to be handled under supervision of Broker, and subject to approval of

Buyer on title questions which may be needed to produce marketable title. If Buyer is refunded any Earnest

Money, any expenses incurred on Buyer’s behalf shall be deducted and paid to creditors. If agreed to by

the

broker, any interest on the trust account shall be forwarded to the Iowa Association of REALTORS® Foundation, a

charitable non-profit entity, or as directed and mutually agreed in writing by both Buyer and Seller.

Purchase Agreement Page 4

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