PROFESSIONAL ADVICE:
Although the Broker and the Agents are trained in the marketing of real estate. Neither the Broker nor the Agents are trained to provide the Seller or any prospective buyer with legal or tax advice, or with technical advice regarding the physical condition of the Property. If the Seller desires advice regarding : (i) legal or tax matters; (ii) the physical condition of the Property; (iii) the Commission Agreement; or (iv) any transaction for the acquisition of the Property, the Broker and the Agents STRONGLY RECOMMEND THAT THE SELLER OBTAIN SUCH INDEPENDENT ADVICE.
If unsure... Be sure your attorney reviews any contract before you sign it--or at least add a clause that the contract is subject to review and approval by your attorney:
Sample Contract Clauses :
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ATTORNEY REVIEW:
This Contract is subject to review and approval by SELLER's attorney to be completed within 3 days of the effective date.
UNDISCLOSED PURCHASER
The Buyer is acting on behalf of an undisclosed purchaser. The Buyer (does; does not) have written authorization from the undisclosed purchaser to make this offer to purchase on the terms and conditions stated. If the Buyer is acting without the written authorization of the undisclosed purchaser as represented above, the Buyer will be personally liable to the Seller under the terms of this Agreement.
CONTINGENT ON SALE OF BUYER'S HOME
This Agreement is contingent upon (insert any of the following) : Buyer's acceptance of an offer to purchase; the written approval of any financing required under an accepted offer to purchase; the closing of the sale of Buyer's property located at (insert location/address) on or before 5:00 P.M. of the (insert date) day of (insert month), 200 (insert year), which Buyer shall use his/her/their best efforts to pursue. Buyer's property is listed exclusively with a licensed real estate broker regularly doing business in the State of (state). If the Buyer's property is not now listed, it will be so listed on or before the (date) day of (date), 200 (date).
Notice of compliance with the requirements of this paragraph will be given by Buyer to the Seller at: Street (address) City/State/Zip (address)
If this notice is not given, then this Agreement is voidable at the option of the Seller by written notice to the Buyer at: Street (address) City/State/Zip (address)
If the Seller by reason of this paragraph chooses to make this agreement null and void, the earnest money deposit will be returned to the Buyer.
CONTINGENT ON SELLER PURCHASING ANOTHER HOME
This Agreement is contingent upon the Seller's executing an Agreement to purchase another home on or before 5:00 P.M. of the (insert date) day of (insert month), 200 (insert year).
The Seller agrees to make a reasonable and diligent effort to pursue this purchase. If the Seller does not deliver to the Buyer in a timely manner evidence of Seller's having purchased another home, this Agreement shall automatically become null and void, and the earnest money deposit will be returned to the Buyer. Evidence of Seller's purchase will be delivered to the Buyer at:
Street (address) City/State/Zip (address)
OPTION TO KEEP HOUSE ON MARKET ("72-HOUR" OR "KICK-OUT" CLAUSE)
The Buyer and the Seller agree that the Seller has the right to continue to offer the property for sale and to accept offers subject to the rights of the Buyer. If the Seller accepts such an offer, the Seller must notify the Buyer at:
Street (address) City/State/Zip (address)
The Buyer has (Insert time period) from receipt of Seller's notice to either: (1) remove the applicable contingencies and provide reasonable evidence of Buyer's ability to perform under the agreement, or (2) allow the Agreement automatically to become null and void. In the latter case, the earnest money deposit will be returned to the Buyer.
SECONDARY ("BACKUP") CONTRACT
The Buyer acknowledges that this Agreement is a Secondary Contract, and the Buyer is aware that there is a pre-existing Agreement (Primary Contract) to sell this property which was executed on the (insert date) day of (insert month), 200 (insert year). If the Primary Contract is canceled, withdrawn or otherwise made null and void, the Seller will so notify the Buyer as provided as provided in paragraph 18 (Notices) at:
Street (insert address) City/State/Zip (insert address)
Upon timely receipt of the notice, this Agreement becomes the Primary Contract. If Buyer in pre-existing Agreement (the Primary Contract) initiates litigation in relation to Backup Offer, Seller may Cancel Secondary Contract upon written notice., then this Secondary Contract shall automatically be null and void; and the earnest money deposit will be returned to the Buyer.
SIMULTANEOUS / IDENTICAL COUNTER OFFERS
The Buyer understands that the Seller has written (Insert number) counteroffers including this one and will sell the property to the Buyer who first communicates to the Seller an acceptance.
REPAIRS TO BE MADE BY SELLER
The Seller agrees to make the following repairs prior to closing or to allow a credit to the Buyer in the amount stated below against the cash portion of the purchase price:
List Repairs Below / Credit Amount
THIRD-PERSON APPROVAL CONTINGENCY
This Agreement is contingent upon the approval of (insert third party) as to all of its terms and conditions on or before 5:00 P.M. of the (insert date) day of (insert month) , 200 (insert year). No notice of approval is required. However, if timely notice of disapproval is not received by the Seller at:
Street (insert address) City/State/Zip (insert address).
this contingency clause become null and void and the Agreement shall remain in full effect and force. If timely notice of disapproval is given, this Agreement is automatically null and void and the earnest money deposit will be returned to the Buyer.
FLEXIBLE SETTLEMENT DATE
Settlement shall take place between the (insert date) day of (insert month), 200 (insert year), and the (insert date) day of (insert month), 200 (insert year) . The exact date will be decided by (insert either: Buyer, Seller) who will provide at least (insert #) days notice to the other party at:
Street (address) City/State/Zip (address)
In the absence of such notice, settlement shall be on the last day stated above.
INTEREST-BEARING EARNEST MONEY DEPOSIT
The Buyer and the Seller authorize the (insert either: listing; selling) real estate office to place the earnest money deposit in an interest-bearing account at (insert location) where it shall be held in trust. The interest income shall be the property of (insert either: Buyer, Seller). This party attaches to the Agreement (insert $ amount) dollars in the form of (insert payment type) which shall reimburse the real estate office for the cost, and compensate the office for the service of establishing this account.
SUBORDINATION CLAUSE
The instrument securing the Buyer's note to the Seller or, if applicable, the Uniform Real Estate Contract between the Buyer and the Seller for the portion of the purchase price indicated in Paragraph # (insert #) of the Real Estate Purchase Contract shall contain a provision permitting the subordination of the instrument securing the Buyer's obligation to pay the Seller. This subordination shall enable a recognized financial institution which lends money to the buyer within (insert #) days of this Agreement to take a position on the record prior to that of the Seller. The amount of this loan shall not exceed (insert $ amount) dollars; it shall bear interest at a rate not in excess of (insert % #) per cent per annum; monthly principal and interest payment shall not exceed (insert $ amount) dollars; and no principal payments other than those included in the monthly amount stated above shall be required before the (insert date) day of (insert month), 200 (insert year). The proceeds of the loan to which the Seller's interest will be subordinated must be used only to finance improvements on the securing property. The proceeds may also be used to pay a reasonable fee for a loan which otherwise meets the requirements of this paragraph. This right of subordination may be exercised only (insert # of times) times.
OFFER ABOVE LISTED PRICE
The Buyer acknowledges that the listed price for this property is $ (insert $ amount). Nonetheless, the Buyer has willingly offered a purchase price which is higher than the listed price. Therefore, the Buyer agrees to hold harmless the brokerages involved in this transaction with respect to the amount of the purchase price.
CREDIT REPORT CONTINGENCY
The Buyer authorizes the Seller to obtain at Seller / Buyer expense a credit report from a Consumer Credit Bureau and to use the report in evaluating the creditworthiness of the Buyer for a note to be taken back by the Seller from the Buyer in this transaction. If in the Seller's sole discretion the report is unsatisfactory, the Seller shall so notify the Buyer on or before the (insert date) day of (insert month), 200 (insert year) at:
Street (insert address) City/State/Zip (insert address)
The timely receipt of the notice will make this Agreement null and void, and the earnest money deposit will be returned to the Buyer. If this Agreement is not so made null and void by notice, this contingency will automatically expire and this Agreement will remain in full force and effect.
SALE OF BUYER'S HOME
The parties acknowledge and understand that in order to generate sufficient funds to pay the purchase price, the BUYER must sell his/her existing residence located at (insert address), which is currently under contract and scheduled to close on (insert date). Therefore, BUYER's obligations hereunder are expressly conditioned upon the successful closing of the contract on said residence. In the event the closing on the sale of said residence has not occurred prior to (insert date), then either party may cancel this agreement, in which event all deposits paid by BUYER shall be returned to BUYER and the parties shall thereafter be discharged from further obligations hereunder.
BACK-UP OFFER
The BUYER acknowledges that the herein-described property is presently under Contract for Sale between the SELLER and (insert party) dated (insert contract date). This agreement represents a back-up agreement to said existing Contract, and shall become immediately binding upon the parties hereto upon notice from the SELLER to the BUYER that the sale under the herein-described per-existing sales agreement did not close, terminate if the sale under the pre-existing Contract closes, or upon the passage of (insert #) days from the date hereof, or upon the written termination of this agreement by the BUYER prior to any notification from the SELLER that the pre-existing sale did not close. Upon termination all deposits shall be refunded to the BUYER after which all parties shall be relieved of all further obligations hereunder.
BUYER'S WARRANTY OF NO DEALINGS WITH BROKER OR SALESPERSON:
The BUYER warrants that he has had no dealings with any real estate broker or salesperson in connection with this sale and that should the BUYER have contracted with another broker or salesperson in a way that would involve a payment of a commission, then the BUYER will be responsible for that payment and not the SELLER. The obligations of this paragraph shall survive the delivery of the deed.