Real Estate Purchase Contract For Residential Construction (Page 5 of 7) in pdf

selections. If Buyer has not notified Seller in writing of such selections as set forth above, Seller shall have the right to make said

selections, at Seller's sole discretion, reasonably exercised, to avoid delay in Substantial Completion of the Residence.

12.1. CONSTRUCTION COMPLIANCE. Construction of the Residence shall be in accordance with the standards and

requirements of all applicable Federal, State, and Local governmental laws, ordinances and regulations, and in compliance with

restrictive covenants applicable to the Lot. If any regulatory requirements for construction of the Residence change during the

course of construction and result in an increase in the costs of labor and/or materials, the Seller reserves the right to adjust the

Purchase Price for the Residence to correspond with such regulatory changes. In such event, the Seller shall provide the Buyer

with a specific description of the regulatory change(s) and an itemization of the costs incurred to comply with the change(s).

12.2. UNAVOIDABLE DELAY. In the event the Residence is not Substantially Complete by the date provided in Section 24(f)

of this Contract due to interruption of transport, availability of materials, strikes, fire, flood, weather, governmental regulations,

acts of God, or similar occurrences beyond the control of the Seller, the Substantial Completion Deadline shall be extended, by

written agreement, for a reasonable period based on the nature of the delay. Seller agrees to provide Buyer written notice of

the nature of the delay no later than [ ] 15 DAYS [ ]

DAYS after commencement of the delay.

12.3. INSURANCE. During the period of construction and until Closing, the Seller shall maintain in full force and effect, at the

Seller's expense, an all-risk insurance policy for the full replacement value of all completed portions of improvements included

in the Residence; and all construction materials located on-site; complete coverage workmen's compensation insurance to

insure against all claims of persons employed to complete the Residence; and, unless otherwise provided herein, public liability

insurance in an amount not less than [ ] $500,000 [ ] $

12.4 PROTECTION AGAINST LIENS AND CIVIL ACTION. Notice is hereby provided in accordance with Section 38-11-108

of the Utah Code that under Utah law, Buyer may be protected against liens being maintained against an "owner-occupied

residence" and from other civil action being maintained to recover monies owed for "qualified services" performed or provided

by suppliers and subcontractors as a part of this Contract, if and only if the conditions required by law are satisfied, including

the following: (a) Buyer must enter into a written contract with either an "original contractor" who is properly licensed or exempt

from licensure, or with a "real estate developer", and (b) Buyer must pay Seller in full in accordance with this Contract and any

written amendments to this Contract. Buyer must be the owner of an owner-occupied residence that is a detached single-family

unit or duplex.

13. AUTHORITY OF SIGNERS. If Buyer or Seller is a corporation, partnership, trust, estate, limited liability company, or other

entity, the person executing this Contract on its behalf warrants his or her authority to do so and to bind Buyer and Seller.

14. COMPLETE CONTRACT. This contract together with its addenda, any attached exhibits, and seller disclosures, constitutes

the entire Contract between the parties and supersedes and replaces any and all prior negotiations, representations, warranties,

understandings or contracts between the parties. This Contract cannot be changed except by written agreement of the parties.

15. DISPUTE RESOLUTION. The parties agree that any dispute, arising prior to or after Closing, related to this Contract

[ ] SHALL [ ] MAY (upon mutual agreement of the parties) first be submitted to mediation. If the parties agree to mediation,

the dispute shall be submitted to mediation through a mediation provider mutually agreed upon by the parties. Each party agrees

to bear its own costs of mediation. If mediation fails, the other procedures and remedies available under this Contract shall apply.

Nothing in this Section 15 shall prohibit any party from seeking emergency equitable relief pending mediation.

16. DEFAULT. If Buyer defaults, Seller may elect either to retain the Earnest Money Deposit as liquidated damages, or to return

it and sue Buyer to specifically enforce this Contract or pursue other remedies available at law. If Seller defaults, in addition to

return of the Earnest Money Deposit, Buyer may elect either to accept from Seller a sum equal to the Earnest Money Deposit

as liquidated damages, or may sue Seller to specifically enforce this Contract or pursue other remedies available at law. If Buyer

elects to accept liquidated damages, Seller agrees to pay the liquidated damages to Buyer upon demand. It is agreed that denial

of a Loan Application made by the Buyer is not a default and is governed by Section 2.4(b).

17. ATTORNEY FEES AND COSTS. In the event of litigation or binding arbitration to enforce this Contract, the prevailing party

shall be entitled to costs and reasonable attorney fees. However, attorney fees shall not be awarded for participation in mediation

under Section 15.

18. NOTICES. Except as provided in Section 23, all notices required under this Contract must be: (a) in writing; (b) signed by the

party giving notice; and (c) received by the other party's agent no later than the applicable date referenced in this Contract.

19. ABROGATION. Except for the provisions of Sections 10.1, 10.2, 12, 12.1, 15 and 17 and express warranties made in this

Contract, the provisions of this Contract shall not apply after Closing.

20. RISK OF LOSS. All risk of loss to the property, including physical damage or destruction to the Property or its improvements

due to any cause except ordinary wear and tear and loss caused by a taking in eminent domain, shall be borne by Seller until the

transaction is closed.

Page 5 of 7

Buyer's Initials___________ Date___________ Seller's Initials___________ Date___________

Real Estate Purchase Contract For Residential Construction Page 5

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