Fillable Purchase And Sale Agreement Template (Page 2 of 3) in pdf

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FINANCIAL AND APPRAISAL CONTINGENCIES: This Agreement is contingent on Buyer obtaining loan(s) of

(n)

Buyer’s choice. Buyer must deliver to Seller no later than 5:00 PM, ten (10) calendar days after the Acceptance Date either

documented proof of available funds adequate to close, or a lender's conditional commitment letter proving that: full loan

application has been made; the appraisal has been ordered; Buyer’s new loan(s) is not contingent on the sale of any other property

(unless otherwise stated in this Agreement); Buyer has necessary cash reserves; and providing reasonable assurance of Buyer's

ability to obtain financing with rates, terms, payments and conditions acceptable to Buyer. Failure to timely provide proof of

available funds or commitment letter will be grounds for Seller to cancel this Agreement by delivering written Notice to Buyer, and all

Earnest Money must be refunded to Buyer. VA/FHA Loan Addendum must be attached if Buyer is seeking VA or FHA financing.

Appraisal Contingency - this Agreement is also contingent on the appraisal value equaling or exceeding the purchase price.

If any repairs are required by the lender, Buyer must deliver to Seller a written list of lender required repairs. Seller must

deliver to Buyer, no later than 5:00 PM, three (3) calendar days after receiving the repair list, a written Notice stating whether or

not Seller will complete the repairs before closing at Seller’s expense. If Seller does not agree to perform such repairs, or does not

reply within the time limit, this Agreement will cancel and all Earnest Money must be refunded to Buyer [see exception in (p)].

If, at anytime, the financial or appraisal contingency is not satisfied, Buyer may cancel this Agreement by delivering to

Seller a written Notice of Cancellation, along with supporting documentation, and all Earnest Money must be refunded to Buyer.

INSPECTION CONTINGENCY AND DUE DILIGENCE PERIOD: This Agreement is contingent on Buyer's

(o)

satisfaction with all property inspections and investigations. Buyer may use any inspectors of Buyer's choice, at Buyer's

expense. Seller must permit Buyer, and Buyer’s representatives and inspectors, reasonable access for inspections, with all

utilities in service at Seller's expense. Buyer assumes all liability for any damage or loss caused by Buyer’s or Buyer

representatives’ inspections or investigations of the property.

Due Diligence Period: All inspections and investigations must be completed with response to Seller no later than

5:00 PM, ten (10) calendar days after the Acceptance Date. During this due diligence period Buyer is strongly advised to:

have a professional home inspection conducted by a licensed home inspector (at Buyer’s expense), AND

(A)

have a wood destroying insect inspection conducted by a licensed pest inspector (at Buyer’s expense), AND

(B)

investigate all matters itemized in the Advisory to Buyers and Sellers (which is an Addendum to this Agreement), AND

(C)

perform any additional inspections and investigations desired, and verify any other matters of concern to the Buyer, AND

(D)

if applicable, obtain a septic system inspection letter (available for a fee at TN Dept of Environment and Conservation).

(E)

Inspection Contingency Resolution: If Buyer is satisfied with all inspections and investigations, Buyer may deliver to

Seller a Notice of Release of inspection contingency. If for any reason Buyer is not satisfied with the results of any

inspection or investigation, the Buyer must, within the Due Diligence Period (Lines 74-75), deliver to Seller either:

a written Notice of Cancellation, canceling this Agreement, and all Earnest Money must be refunded to Buyer, OR

(1)

a written Inspection Contingency Removal Proposal. If Seller rejects Buyer’s Proposal (or Counterproposal) by delivering

(2)

a Notice of Rejection to Buyer, or if any Counterproposal is rejected by either party, or if a time limit for a written response

to such is exceeded, this Agreement will cancel and all Earnest Money must be refunded to Buyer [see exception in (p)].

- Any Proposal, Counterproposal, Notice of Rejection, or Notice of Release of inspection contingency must be in writing.

- Any Proposal or Counterproposal must contain a time limit for responding (that is, an expiration date & time).

If it is discovered during the Due Diligence Period that any permanent structure on the property has an active wood destroying

insect infestation, the Seller, upon Buyer’s request, must professionally treat infestation before closing at Seller’s expense.

Repair of any damage from wood destroying insects must be negotiated in the Inspection Contingency Removal Proposal.

CAUTION TO BUYER: Failure to deliver to the Seller either a written Notice of Release or Notice of Cancellation, or a written

Inspection Contingency Removal Proposal within the Due Diligence Period described on Lines 74-75 will be considered to

be an acceptance of the property “as is,” and the Inspection Contingency will be satisfied and no longer a part of this Agreement.

BUYER’S RIGHT TO REINSTATE: If Seller refuses to complete the lender required repairs (Lines 63-66), or cancels this

(p)

Agreement by rejecting an Inspection Contingency Removal Proposal (Lines 85-89), Buyer has the right to reinstate the

Agreement by delivering to Seller a Notice stating that the Buyer will accept the property in its present "as is" condition. Buyer’s

Notice must be delivered to Seller no later than 5:00 PM, three (3) calendar days after the delivery of Seller's Notice of

rejection, or if Seller has failed to respond, no later than 5:00 PM, three (3) calendar days after the Seller’s deadline to reply.

100

FINAL INSPECTION & RISK OF LOSS: Buyer has the right and responsibility to perform a final inspection before closing

(q)

101

to determine that the property is in the same condition, other than ordinary wear, as when the Agreement was accepted (with

102

Seller having responsibility to remedy), and to see that any repairs agreed to be performed by Seller have been completed. Buyer

103

may utilize inspectors. All utilities must be in service at Seller's expense. Closing of sale demonstrates acceptance of these items

104

by Buyer. The risk of hazard or casualty loss or damage to the property will be the responsibility of Seller until closing.

105

DISBURSEMENT OF EARNEST MONEY, AND ADEQUATE CONSIDERATION: The Earnest Money will be

(r)

106

applied towards the purchase price at closing. If any contingencies or conditions of this Agreement are not met and the

107

Agreement is cancelled, all Earnest Money must be refunded to Buyer. If Seller fails to perform any obligation under this

108

Agreement, all Earnest Money must be refunded to Buyer. If required, the Escrow Agent may file an interpleader action in

109

a court of law, and recover expenses and reasonable attorney’s fees, and will have no further liability as Escrow Agent. All

110

parties acknowledge that the consideration given, including the promises exchanged, the time limitations imposed, and the

111

notifications required, is sufficient and adequate in exchange for the Buyer's right to legally, properly, and in good faith

112

cancel, reinstate or extend this Agreement in accordance with the other terms of this Agreement.

113

01/01/2013

Page 2 of 3

Purchase And Sale Agreement Template Page 2

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