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Offer to purchase
a home
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An Offer to Purchase appears hopelessly complicated, but individual paragraphs are easily understood by anyone who takes the time. Audrie's trick is to examine no more than three paragraphs at a sitting. |
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| Below is a sample offer of $150,000 for our sample house. | ||||
| Click the butterflies for explanations | ||||
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| 1. PURCHASE AND SALE. The undersigned buyer ("Buyer") agrees to buy and the undersigned seller ("Seller") agrees to sell the property described below under the terms and conditions hereinafter set forth, which shall include the standards for real estate transactions set forth within this
Agreement. Location of property: ADDRESS __________134 Harbor Place _____________________________________ CITY_____Bakersfield____COUNTY___Orange_ STATE____California__________ BLOCK and LOT number if available __________________________________________________ |
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| 2. PURCHASE PRICE AND METHOD OF PAYMENT. | ||||||
| A. | The purchase price to be paid by the Buyer at closing is: A hundred & fifty thousand__ dollars, $_150,000_____. | |||||
| B. | This agreement is made conditioned upon Buyer's ability to obtain a mortgage loan in the principal amount of __80__ % of the purchase price within 30 (or_45_ ) days after Acceptance of this Agreement. Mortgage loan amount: $__120,000__________. | |||||
| C. | Buyer has made an earnest money deposit of
$___1,000_____ to be held in trust by: ____Nixon & Nixon Realty_________________________________ |
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| D. | Buyer warrants that Buyer will at closing have additional cash in the amount of,
$_30,000__, to complete the purchase. |
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| 3. CLOSING (or CLOSE OF ESCROW). This Agreement shall be closed and deed and possession shall be delivered on or before _20th_ day of ____June________________,__200x_____(year), unless extended by other provisions of this Agreement. Closing shall be held at the office of the escrow holder, the Seller's attorney, the title company, or as otherwise agreed upon. | ||||||
| 4. DOCUMENTS FOR CLOSING. At Closing, Buyer shall receive a deed conveying title (or, for stock cooperative or long-term lease, an assignment of stock certificate or of Seller's leasehold interest), including oil, mineral and water rights, if currently owned by Seller. The closing attorney shall prepare deed, note, mortgage, Seller's affidavit, any corrective instruments required for perfecting title, and closing statement, and submit copies of same to Buyer or his attorney, and copies of closing statement to the Seller and the broker, at least two days prior to scheduled closing date. | ||||||
| 5. RESTRICTIONS, EASEMENTS,
LIMITATIONS. Title shall be subject to all encumbrances, easements, covenants, conditions, restrictions, rights, and other matters which are of record; including: (1) Zoning, restrictions and requirements imposed by government authority, (2) Restrictions and controls appearing on the plat or common to the subdivision, (3) Public utility easements of record,, provided said easements are located on the side or rear lines of the property, (4) Taxes for year of closing, assumed mortgages, and purchase money mortgages, if any, (5) Other: ______________________ _________________________________________________________________________. Title shall not be subject to any liens against the Property, and Seller warrants that there shall be no violations of building or zoning codes at the time of closing. |
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| 6. CLOSING AND POSSESSION | ||||||
| A. | Seller occupancy: Possession and occupancy shall be delivered to Buyer at _3_ AM/PM, PM on the date of Closing or ___ no later than ______ days after Closing . | |||||
| B. | Tenant occupancy: Property shall be vacant, unless otherwise agreed in writing. Seller has the responsibility to (1) comply with rent control and other Law necessary to deliver Property vacant, and (2) determine whether timely vacancy is permitted under such Law. | |||||
| C. | At Closing Seller assigns to Buyer any assignable warranty rights for items included in the sale and shall provide any available copies of such warranties. | |||||
| D. | Seller shall provide keys and/or means to operate all locks, mailboxes, security systems, alarms, and garage door openers. If Property is a unit in a condominium or other common interest subdivision, Buyer may be required to pay a deposit to the Homeowners' Association ("HOA") to obtain keys to accessible HOA facilities. | |||||
| 7. BUYERS INVESTIGATION OF PROPERTY CONDITION: Buyer's Acceptance of the condition of the Property is a contingency of this Agreement. Buyer shall have the right at Buyer's expense, unless otherwise agreed, to conduct inspections, investigations, tests and surveys, including the right to inspect for lead-based paint hazards and for wood destroying insects. No Inspections shall be made by any governmental building or zoning inspector, or government employee, without Seller's prior written consent, unless required by Law. At Seller's request, Buyer shall give Seller, at no cost, complete Copies of all Inspection reports disapproved by Buyer. Seller shall make Property available for all Inspections. Seller shall have water, gas and electricity on for Buyer's Inspections, and through the date possession is made available to Buyer. | ||||||
| A. | GENERAL INSPECTION. The Buyer or his agent may inspect premises of the property at least 15 days prior to closing. Inspection may include appliances, heat and air conditioning systems, electrical systems, plumbing, machinery, sprinklers and pool system included in the sale. Seller shall pay for necessary repairs. Within 72 hours before closing, buyer shall be entitled, upon reasonable notice to Seller, to inspect the premises to determine that said items are in working order. | |||||
| B. | TERMITE INSPECTION. ___ Buyer X_ Seller shall pay to have a licensed exterminator examine the property at least 15 days prior to closing. If there is evidence of live termite or other wood-boring insect infestation on said property, or substantial damage from prior infestation, the Seller shall pay up to three (3%) percent _____ of the purchase price for treatment and repairs required to remedy such infestation; but if the costs for such treatment or repairs exceed three (3%) percent _____ of the purchase price, the Buyer may elect to pay such excess. If Buyer elects not to pay, the Seller may pay the excess or cancel the Agreement. | |||||
| C. | ROOF INSPECTION. _X_ Buyer ___ Seller shall pay to have the property inspected by a licensed roofer at least 15 days prior to closing. In the event repairs are required either to correct leaks or to replace damage, Seller shall pay up to three (3%) percent ____ of the purchase price for said repairs which shall be performed by a licensed roofing contractor; but if the cost for such repairs exceed three (3%) percent ____ of the purchase price, the Buyer may elect to pay such excess. If Buyer elects not to pay, Seller may pay the excess or cancel the Agreement. | |||||
| (If checked, the inspections in 7D, 7E, and 7F are contingencies of this agreement) | ||||||
| D. | X_ Buyer ___ Seller shall pay to have septic or private sewage disposal system inspected. | |||||
| E. | ___ Buyer X_ Seller shall pay to have domestic wells tested for water potability and productivity | |||||
| F. | ___ Buyer X_ Seller shall pay for a natural hazard zone disclosure report prepared by ____________________________________ | |||||
| 8. REPAIRS: Repairs shall be completed at least 5 days prior to Closing unless otherwise agreed in writing. Repairs to be performed at Seller's expense may be performed by Seller or through others, provided that work complies with applicable Law. Repairs shall be performed in a skillful manner with materials of quality and appearance comparable to existing materials. It is understood that exact restoration of appearance or cosmetic items following all Repairs may not be possible. | ||||||
| 9. SELLER PROTECTION FOR ENTRY UPON PROPERTY: Buyer shall: (1) keep Property free and clear of liens; (2) hold Seller harmless from all liability, claims, damages and costs; and (3) Repair all damages arising from Inspections. Buyer shall carry, or Buyer shall require anyone acting on Buyer's behalf to carry; policies of liability and other applicable insurance, defending and protecting Seller from liability for any injuries to persons or property occurring during any inspections or work done on the Property at Buyer's direction. | ||||||
| 10. ALLOCATION OF COSTS | ||||||
| A. | ___ Buyer _X_ Seller shall pay for smoke detector installation if required by Law. Prior to Closing, Seller shall provide Buyer a written statement of compliance in accordance with state and local Law, unless exempt. | |||||
| B. | ___ Buyer _X_ Seller shall pay the cost of compliance with any other minimum mandatory government retrofit standards, inspections and reports if required as a condition of closing escrow under any Law. | |||||
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Sections inserted by the Buyer |
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| B2. | Seller shall
pay Buyer's cost of obtaining a mortgage loan, including appraisal fees,
credit reports, loan points, and underwriting fees. Such cost not to exceed $__3,500___
. Buyers initials ____J.B.__________ Seller's initials ___________________ |
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| B3. | ___ Buyer
_X_ Seller shall pay
closing costs, including attorney fees, title search, title insurance, and
document insurance. Such closing costs not to exceed $__1,000__
. Buyers initials ____J.B.__________ Seller's initials ___________________ |
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| C. | ___ Buyer _X_ Seller shall pay for owner's title insurance policy, issued by __________________________________ | |||||
| D. | (Buyer shall pay for any title insurance policy insuring Buyer's Lender, unless otherwise agreed.) | |||||
| E. | ___ Buyer _X_Seller shall pay County transfer tax or transfer fee. _________________________________________ | |||||
| F. | ___ Buyer _X_Seller shall pay City transfer tax or transfer fee. | |||||
| G. | ___ Buyer _X_Seller shall pay HOA transfer Fees _____________________________ | |||||
| H. | ___ Buyer _X_Seller shall pay HOA document preparation fees._________________ | |||||
| I. | ___ Buyer _X_Seller shall pay the cost, not to exceed $ __250__________, of a one-year home warranty plan, issued by ______Prudential Home Warranty__ | |||||
| 11. SELLERS DISCLOSURE STATEMENT AND OTHER DISCLOSURES WITH CANCELLATION RIGHTS: | ||||||
| A. | Within the time specified in paragraph 14, a Seller's Disclosure Statement, including natural hazard disclosure, military ordnance disclosure, and lead-based paint disclosure shall be completed and delivered to Buyer, who shall return Signed Copies to Seller. If required by Law, Seller shall (1) disclose if Property is located in special flood hazard Areas; potential flooding areas; very high fire hazard zones; state fire responsibility areas; earthquake fault zones; or seismic hazard zones; and (2) provide Buyer with any earthquake guides or environmental hazards booklets required by state law. | |||||
| B. | In the event Seller, prior to Closing, becomes aware of adverse conditions materially affecting the Property, or any material inaccuracy in disclosures provided to Buyer of which Buyer is otherwise unaware, Seller shall promptly provide a subsequent disclosure, in writing, covering those items. | |||||
| C. | Seller shall (1) make a good faith effort to obtain a disclosure notice from any local agencies which levy a special tax on the Property; and (2) promptly deliver to Buyer any such notice made available by those agencies. | |||||
| D. | ___ (If checked) CONDOMINIUM/COMMON INTEREST SUBDIVISION: Property is a unit in a condominium, or other common interest subdivision. Seller shall request from the Home Owners Association (HOA), and upon receipt provide to Buyer: (1) Copies of any documents required by Law; (2) disclosure of any pending or anticipated claims or litigation by or against the HOA; (3) a statement containing the location and number of designated parking and storage spaces. | |||||
| E. | NOTICE OF VIOLATION: If, prior to Closing, Seller receives notice or is made aware of any notice filed or issued against the Property, for violations of any Law, Seller shall immediately notify Buyer in writing. | |||||
| F. | SPECIAL OFFENDER DISCLOSURE NOTICE: Many local law enforcement authorities maintain for public access a data base of the locations of persons required to register as convicted sex offenders. Buyer may contact law enforcement authorities for information about the presence of these individuals in the vicinity of the property. | |||||
| G. | RADON GAS DISCLOSURE: "Radon Gas" is a naturally occurring radioactive gas that, when it has accumulated in a building in sufficient quantities, may present a health risk to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines have been found in buildings in _______________________________. Contact your county public health unit for additional information regarding radon and radon testing. | |||||
| 12. CONDITION OF PROPERTY: | ||||||
| Unless otherwise agreed, (1) Property is sold (a) in its PRESENT physical condition on the date of Acceptance and (b) subject to Buyer inspection rights; (2) Property, including pool, spa, landscaping and grounds, is to be maintained in substantially the same condition as on the date of Acceptance. | ||||||
| 13. ITEMS INCLUDED IN SALE: | ||||||
| A. | All existing fixtures and fittings that are attached to the Property, are INCLUDED IN THE PURCHASE PRICE (unless excluded in paragraph 13C below), and shall be transferred free of liens and without Seller warranty. Items to be transferred shall include, but are not limited to, existing electrical, mechanical, lighting, plumbing and heating fixtures, fireplace inserts, solar systems, built-in appliances, window and door screens, awnings, shutters, window coverings, attached floor coverings, television antennas, satellite dishes and related equipment, private integrated telephone systems, air coolers/conditioners, pool/spa equipment, garage door openers/remote controls, attached fireplace equipment, mailbox, in-ground landscaping, including trees/shrubs, and (if owned by Seller) water softeners, water purifiers and security systems/alarms. | |||||
| B. | ADDITIONAL ITEMS INCLUDED: The following items of personal property, free of liens and without Seller warranty are included in the purchase
price: _Basement Work
bench_ Buyers initials ____J.B.__________ Seller's initials ___________________ |
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| C. | ITEMS EXCLUDED FROM
SALE________Outdoor
Gas Barbecue Buyers initials ____J.B.__________ Seller's initials ___________________ |
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| 23. DEFINITIONS: As used in this Agreement: | ||||||
| A. | "Acceptance" means the date the offer or final counter offer is accepted in writing by the other party and communicated in accordance with this Agreement or the terms of the final counter offer. | |||||
| B. | "Agreement" means the terms and conditions of this Offer to Purchase Agreement and any counter offer and addenda. | |||||
| C. | "Days" means calendar days, unless otherwise required by Law. | |||||
| D. | "Days After" means the specified number of calendar days after the occurrence of the event specified, not counting the calendar date on which the specified event occurs, and ending at 11:59PM on the final day. | |||||
| E. | "Closing" or "Close Of Escrow" means the date the grant deed, or other evidence of transfer of title, is recorded. If scheduled Closing falls on a Saturday, Sunday or legal holiday, then the Closing date shall be the next business day after the scheduled Closing date. | |||||
| F. | "Closing Attorney" means officer who hosts the Closing, prepares the deed, pays outstanding bills, and transfers title to the Buyer. In some states the Escrow Holder or a Title Company officer performs these functions. | |||||
| G. | "Copy" means copy by any means including photocopy, NCR, facsimile and electronic. | |||||
| H. | "Law" means any, law, code, statute, ordinance, regulation, rule or order, which is adopted by a controlling city, county, state or federal legislative, judicial or executive body or agency. | |||||
| I. | "Repairs" means any repairs, alterations, replacements, or modifications, (including pest control and retrofit) of the Property. | |||||
| J. | "Signed" means either a handwritten or electronic signature complying with applicable state Law. | |||||
| K. | Singular and Plural terms each include the other, when appropriate. | |||||
| 24. INSTRUCTIONS TO CLOSING ATTORNEY (OR ESCROW HOLDER): | ||||||
| This Agreement constitutes the Instructions of Buyer and Seller to the Closing Attorney, which Closing Attorney is to use, along with any additional mutual instructions, to close the transaction. Buyer and Seller will execute additional instructions, documents and forms reasonably necessary to complete this transaction as provided by Closing Attorney (or Escrow Holder). If required by law or local practice, a copy of this Agreement shall be delivered to Escrow Holder, Title Company attorney, or other attorney or person responsible for the closing, within three business days after the date of Acceptance of this Agreement. | ||||||
| 26. OFFER: This is an offer to purchase the Property on the above terms and conditions. All paragraphs with spaces for initials by Buyer and Seller are incorporated in this Agreement only if initialed by all parties. If at least one but not all parties initial, a counter offer is required until agreement is reached. Unless Acceptance of offer is Signed by Seller, and a Copy of the Signed offer is personally received by Buyer, or by
______Gus Agent__ who is authorized to receive it, by (date)
___May 15, 200x___, at
___3 PM__ AM/PM, the offer shall be deemed revoked and the deposit shall be returned. Seller has the right to continue to offer the Property for sale and to accept any other offer at any time prior to communication of Acceptance as above. This Agreement and any supplement, addendum, or modification, including any Copy, may be Signed in two or more counterparts, all of which shall constitute one and the same writing. |
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BUYER __Jim
Buyer___________ |
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| 28. ACCEPTANCE OF OFFER: Seller warrants that Seller is the owner of this Property, or has the authority to execute this Agreement. Seller accepts the above
offer and agrees to sell the Property on the above terms and
conditions. Seller has read and acknowledges receipt of a Copy of this Agreement, and authorizes Broker to deliver a Signed Copy to Buyer. ___ (If checked) SUBJECT TO ATTACHED COUNTER OFFER, DATED ______________ SELLER_______________________________________________ Date ____________ SELLER_______________________________________________ Date ____________ |
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