REAL ESTATE LAW CERTIFICATION SAMPLE EXAMINATION QUESTIONS INTRODUCTION

REAL ESTATE LAW CERTIFICATION SAMPLE
EXAMINATION QUESTIONS
INTRODUCTION
These sample examination questions that follow are not
intended to be a formal guide from which to study for the
examination, but is only provided to allow the examinee to see
how the Real Estate Law Certification Committee structures the
multiple choice, short and long essay questions, thereby
alleviating any fear potential applicants may have regarding the
examination.
The Committee wishes you luck and is hopeful you will make
application to sit for the examination. If you have questions
regarding the filing of the application, please do not hesitate to
contact
our
Bar
Staff
Liaison,
Carol
Vaught
at:
[email protected] or at (850)561-5738.
SAMPLE MULTIPLE CHOICE QUESTIONS
1.
Jack rents Apartment Z from Jill on a month-to-month tenancy. Pursuant to the
written lease, Jack is required to pay rent on the first of each month. On November 16,
2005, Jill gives notice to Jack that he must vacate the apartment immediately. Pursuant
to Florida law, Jack's month-to-month tenancy expires at midnight on what date?
a.
On November 30, 2005.
b.
Within thirty (30) days of receiving written notice from Jill.
c.
Within fifteen (15) days of receiving written notice from Jill.
d.
On December 31, 2005.
Answer: d.
2.
The closing of the sale of a multi-family apartment building located in Palm
Beach County, Florida is scheduled for June 6, 2006. The Seller purchased the
property for $375,000.00. The current sales price is $300,000.00 and the Seller’s net
sale proceeds will be $75,000.00. The Seller is a single purpose Florida limited liability
company (LLC) which has obtained a United States Federal Taxpayer Identification
Number. There is only one member of the LLC, Bill Jones. Jones permanently resides
in Venezuela, does not maintain a personal residence in the United States, and is not a
United States citizen. The Buyer does not intend to reside in the property. Which of the
following statements is true with respect to the Buyer’s obligation to withhold a portion
of the Seller’s sales price at closing?
a.
The Buyer cannot withhold any portion of the Seller’s net sales price unless the
real estate contract authorizes the Buyer to do so.
b.
As long as the LLC furnishes the Buyer with a certificate of non-foreign status in
the manner provided by the Internal Revenue Code and applicable Treasury
Regulations, the Buyer cannot withhold any portion of the Seller’s net sales price.
c.
Unless prior arrangements have been made with the IRS, the Buyer must
withhold a portion of the Seller’s sales price.
d.
Since the sales price is less than the purchase price the Seller paid for the
property, the Buyer cannot withhold any portion of the Seller’s net sales price.
Answer: c.
2
3.
A mobile home park owner wishes to cease operating the mobile home park and
change its use. Under current Florida law, which of the following statements is true?
a.
The park owner must provide all tenants with three (3) years’ notice of its intent
to cease operations, and petition the Division of Land Sales, Condominiums and
Mobile Homes for a change in use.
b.
The park owner may evict all of the tenants and close the park after six (6)
months’ notice to tenants.
c.
The park owner may not close the park unless expressly provided for in the
incorporating documents.
d.
The residents can stop any change in use by a 75% vote of all affected
properties.
Answer: b.
4.
Mike and Alice Johnson are married, but separated. There is a divorce action
pending. They have no children. Prior to separating, they held title to the former marital
home as tenants by the entirety. Mike has moved out and is living in a condominium he
purchased. He has also filed for a homestead exemption on his new condominium.
Alice has continued to reside in the former marital home, and has applied for a new
mortgage on it. Mike does not want to sign the new mortgage and has executed and
delivered a quitclaim deed to her, which has already been recorded. Which of the
following is true?
a.
It is not necessary for Mike to sign the new mortgage.
b.
It is not necessary for Mike to sign the mortgage, as long as an affidavit is
recorded confirming that the property is not his homestead and containing the
address of his new homestead.
c.
It is necessary for Mike to sign the mortgage but not the promissory note.
d.
It is necessary for Mike to sign both the mortgage and the promissory note.
Answer: c.
3
5.
Mutt and Jeff are neighbors. Mutt sues Jeff over a common boundary. Which one of the
following is true concerning the doctrine of boundary by acquiescence?
a.
Actual lack of knowledge as to the true boundary on the part of both owners is a
necessary element.
b.
A necessary element is that one party must put up a fence on the true boundary.
c.
The boundary can only be determined by a suit for ejectment.
d.
The boundary can only be determined by a suit for quiet title.
Answer: a.
4
SAMPLE ESSAYS
(ETHICS QUESTION.)
Adam is a local attorney who handles a variety of matters including some residential
real estate closings.
Last year he became a licensed real estate broker to help
supplement his income.
Adam added ‘licensed real estate broker’ to his lawyer
business cards and hung a second sign on the door next to his law office sign that
reads ‘Adam & Zach Real Estate Brokers’. Zach dropped out of law school and is
Adam’s best friend who uses Adam’s office during the week ends as a broker. Adam
has a small office in a neighborhood shopping plaza which consists of two rooms: one
room with a receptionist desk and his work desk and another room that is used as a
conference room. The receptionist answers the phone as “Adam’s Law Office”. One
day, Sally called Adam’s office and met with him in his office to have him list her house
for sale. During a subsequent meeting in Sally’s house she tells Adam that she wants
to sell the house as soon as possible because ‘no one knows this but my aunt recently
committed suicide in the house’. Adam takes the house listing and is not able to sell the
house. After six months Sally decides to use a friend in the neighborhood to list her
house instead of Adam. Two months later Beth meets Adam in his office and hires
Adam to help her find a house. Adam and Beth review a listing sheet that includes
Sally’s house. Adam tells Beth not to bother looking at Sally’s house because a suicide
occurred there. Undeterred, Beth and Adam visit Sally’s house and Beth asks Sally if
she would accept half the listing price because of the suicide. Sally yells at Adam for
telling her secret and tells him he is the worst lawyer she has ever met and is going to
report him to. The Florida Bar for ethics violations. Please discuss the following
potential ethics issues: (a) dual profession; (b) conflict of interest; and (c)
confidentiality.
5
(ETHICS QUESTION.)
Patty Paralegal works for Adam Attorney. Patty’s neighbor, Sally Seller, is selling her
home. Patty referred Sally to Adam. Adam agreed to represent Sally as her Attorney
during the residential real estate closing. Adam pays a bonus to Patty for each client
that she refers to Adam’s law office. Adam has Patty prepare the closing documents for
Sally’s closing. Frank invites Adam to going fishing the same day as Sally’s closing so
Adam goes into the office the night before the closing and reviews the closing
documents prepared by Patty. Adam makes some significant corrections to the closing
statement and leaves it on Patty’s desk. The next day Sally arrives at the real estate
closing which is being handled by Patty. During the closing Sally has a question about
a charge on the closing statement. Patty is not able to answer the question and tries to
reach Adam by phone but he is not available. Sally says to Patty: “Where is Adam and
why is he not here to answer my question?” Please discuss the following potential
ethics issues: (A) the bonus; (B) preparing the closing documents; and (C)
attending the closing.
6
TRANSACTION ANALYSIS QUESTION
There are four separate answer booklets for this question. The lines provided are not an indication of how
long or short your answers should be. Please address each question fully in your answer by discussing
applicable reasoning, rules, and law. Do not put your name on the answer booklets. This question must be
answered. Please write you answers on the "lined" pages only, Do not write on the back of the pages. If you are
typing your answers to this question, please identify the answer as "Transaction Analysis Question – Part II –
Question #1", etc. Use a separate test booklet for the answer to each question. If typing, identify each
answer by number. For example, do not combine answers number 1 and 2 together. Please also reflect your
examination number as shown on the front cover of this examination booklet on the first page of each answer
sheet.
Harry Smyth owns two contiguous parcels of land. The rear parcel is located on the St.
John River in Putnam County, Florida. It contains a two story, 8 unit fishing lodge and 8
boat docks located on the river. The front parcel contains a single family residence
where Harry has lived for 10 years. It is not on the river but is on a public road. Access
to the rear parcel is over the front parcel. Harry bought all the land years ago and paid
very little for it. The docks and the units in the lodge are new construction that were
completed in February 2011. The units and docks are leased on a weekly or monthly
basis. Harry has decided to sell both parcels and move to Southwest Florida where he
believes the fishing is better and the rates he can charge will be higher. He plans to use
the proceeds of the sale to buy a new house and another fishing lodge and has
received a letter of intent from Renovator LLC for a price that he cannot refuse. Harry
has not yet accepted it. Harry is willing to provide the requested short term seller
financing that is called for in the offer, but he wants to be sure that his interests are
protected and he wants to minimize his taxes. Harry wants to be protected, but he does
not want to lose the sale as the price is just too good.
(Continued on Next Page)
7
Refer to relevant financial information, letter of intent, and sketch set out below.
Front Parcel
2011 Taxes
$1,500
Rear Parcel
$1,850
Monthly Unit Rent
$8,000
Monthly Dock Rent
$1,600
Security Deposits
$10,000
Current Mortgage Balance
$50,000
Monthly Rent Payable Under TIIF Lease
$1,000,000
$500
Letter of Intent
May 17, 2012
Mr. Harry Smyth
Palatka, Florida
Re: Your Two Parcels of Land and Improvements
Dear Mr. Smyth:
We hereby offer to purchase your two parcels of land located on Putnam County,
Florida as depicted on the sketch in Exhibit A (the Property). We will purchase the
Front Parcel for a price of $400,000 and the Rear Parcel for a price of $2,000,000. We
will pay cash for the Front Parcel. The purchase price of the Rear Parcel will be paid by
$1,500,000 in cash at closing. The balance of the purchase price for the Rear Parcel
will be evidenced by a purchase money note for $500,000 and be secured by a
purchase money second mortgage that encumbers the Rear Parcel. The note will bear
interest at 6% per annum and be payable in equal monthly installments of interest and
principal calculated to amortize the debt over a 20 year term. The note will mature 5
years after the closing date. The purchase money mortgage will be subordinated to an
institutional mortgage in the amount of $2,650,000 that we will obtain. A portion of this
loan will be used to construct a new 8 unit lodge on the Front Parcel. The loan will bear
interest at 4% per annum and be payable in equal monthly installments of principal and
interest over a 20 year amortization period when it will mature. It will encumber both the
Front and Real Parcels.
(Continued on Next Page)
8
At closing you will convey both parcels to us by warranty deed and you will
assign the sovereignty lands lease respecting the docks. You will convey all personal
property and equipment located in the lodge on the Rear Parcel by a bill of sale. Rent
under all leases of the lodge units and docks will be prorated at closing and all security
deposits will be transferred to us. It is our understanding that all 8 lodge units are
leased through July 31, 2012 and that all docks are leased through December 31, 2012.
You will provide us with current estoppel letters from all tenants at closing that
will confirm the status of each lease and all payments there under and that the term of
each lease does not extend more than two months after the closing date. All taxes,
assessments, rents under the sovereignty land lease will also be prorated as of the
closing. We will bear the cost of transactional taxes, expenses, and fees on our own
financing and any sales taxes on the personal property and equipment. You will bear
the documentary stamps on the deed to us. We will split the documentary stamps and
intangible taxes on the purchase money financing. You will pay any real estate
brokerage commission that is due on this sale.
You will provide us with, and pay for, a commitment for title insurance on both
parcels in the amount of the purchase price of each and a title policy following the
closing. The condition of title reflected thereby must be entirely acceptable to us.
We are to have a 30 day period of due diligence during which we may inspect the
property, the improvements thereon, the personal property and equipment, your lease,
rental history and the costs of operation and maintenance of the property and arrange
financing.
We will enter into a formal purchase contract with each other prepared by our
attorney within 5 business days following your acceptance of this letter of intent. At that
time we will make an earnest money deposit of $100,000 which will be held by our
attorney in escrow. The formal purchase contract will contain the terms and conditions
that are customary in real estate sales in Putnam County, Florida. It will provide for a
closing on July 15, 2012 at which time you will deliver exclusive possession of the
property to us.
This offer is available for your acceptance until 5:00 p.m. May 20, 2012. Please
signify your acceptance by signing a copy of this letter below and returning it to us.
Very truly yours,
Rennovator, LLC
(Continued on Next Page)
9
Answer the following four questions, applying good or best practice standards.
Your answers should be in short narrative or outline form with an explanation.
1.
Identify issues and problems that are presented by the letter of intent from
Harry’s perspective.
2.
Explain how would you recommend changing the letter of intent to satisfy
Harry’s objectives and to best protect Harry.
3.
What terms and conditions do you recommend be included in the purchase
money mortgage that Harry is to receive?
4.
Calculate and explain how the tax proration and other prorations and
credits that are required would be made assuming a closing date as
provided in the letter of intent.
(Continued on Next Page)
10
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11
CONTRACT ANALYSIS AND HUD-1 SETTLEMENT STATEMENT
QUESTION
Review the attached Residential Contract For Sale and Purchase and partially
completed HUD-1 Closing Statement. The transaction is a short sale with a new
mortgage provided by a bank and a second mortgage provided by Joe, the current short
sale private lender. The contract has been properly executed by all parties and all
contract contingencies have been satisfied. The new first mortgage loan is to be made
to Betty by Gulf Winds Bank on the terms provided. In order to guard against Betty not
paying the Gulf Winds mortgage, Joe requires that his new second mortgage be
structured and secured as a wrap around note and mortgage inclusive of the debt to
Gulf Winds and the debt owed to himself.
Joe agrees to absorb the cost of
documentary stamps and intangible taxes on his loan documents. Gulf Winds Bank
approves of the wrap around note and mortgage to Joe. You are representing Betty
and are providing her and Gulf Winds Bank with title insurance and acting as closing
agent. She came to you to close the transaction with the contract fully executed and all
financing conditions approved and satisfied.
Your paralegal has prepared the HUD-1, but it is only partly completed because your
paralegal is uncertain how to handle certain aspects of this transaction.
The GFE
reflects the premium for the owner's policy of title of insurance, the documentary stamps
for the deed and mortgages, origination charges, escrows, and all other typical items.
The amounts for these charges on the GFE are accurately reflected on page 3 of the
partially completed HUD-1.
(Continued on Next Page)
12
Provide a short answer to each of the following questions concerning the
documents and fact pattern provided.
Show or explain any calculations and
provide your reasoning for them. DO NOT COMPLETE THESE ITEMS ON THIS
QUESTION PAGE OR ON THE ATTACHED HUD-1. ANSWER THESE QUESTIONS
IN THE ATTACHED ANSWER BOOK IF YOU ARE HANDWRITING YOUR
ANSWERS.
IF
YOU
ARE
TYPING
YOUR
ANSWERS,
FOLLOW
THE
INSTRUCTIONS AS REFLECTED ON THE FIRST PAGE OF THIS EXAM PACKAGE.
1.
How should lines 202 and 204 of the HUD-1 be completed? Briefly explain
your answer.
2.
How should line 504 of the HUD-1 be completed?
Briefly explain your
answer.
3.
Briefly discuss any RESPA tolerance violations – what is the amount of the
violation, how should it be cured and who is responsible for curing any
violation.
4.
How should the owner’s policy premium be shown on the HUD-1? Briefly
explain your reasoning.
5.
Who pays the various documentary stamp and intangible tax charges, how
much are they, and how should they be shown on the HUD-1?
6.
How should the Home Warranty charge be shown on the HUD-1 and who
pays it?
(Continued on Next Page)
13
Residential Contract for Sale and Purchase
THIS FORM HAS BEEN APPROVED BY THE FLORIDA REALTORS AND THE FLORIDA BAR
• PARTIES:
Sam Flipper
("Seller"),
2 • and
Betty Buyer
("Buyer"),
3 agree that Seller shall sell and Buyer shall buy the following described Real Property and Personal Property
4 (collectively "Property") pursuant to the terms and conditions of this Residential Contract For Sale And Purchase and
5 any riders and addenda ('Contract"):
6 1. PROPERTY DESCRIPTION :
7 •
(a) Street address, city, zip: ~-,-,--,-:-----"*-*--------,,------··-·-----=------street Address
8 •
9 •
10 •
11
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•
•
•
•
City
Zip
(b) Property is located in:
Collier
County, Florida. Real Property Tax ID No: _ _ _ _•_••_ __ _
(c) Legal description of the Real Property: _ _ _ _ __ _ _ ____.:Lo~t'-!X.!.L...!:B!!:Io~c!!:k'-!X~--------together with all existing improvements and fixtures, including built-in appliances, built-in furnishings and
attached wall-to-wall carpeting and flooring ('Real Property") unless specifically excluded below.
(d) Personal Property: The following items owned by Seller and existing on the Property as of the date
of the initial offer are included in the purchase ('Personal Property"): (i) range(s)/oven(s}, dishwasher(s),
disposal, ceiling fan(s), intercom, light fixtures, rods, draperi es and other window treatments, garage door
openers, and security gate and other access devices; and (ii) those additional items checked below. If
additional details are necessary, specify below. If left blank, the item below is not included:
0 Refrigerator(s)
O smoke detector(s) 0 Pool barrier/fence
0 Storage shed
0 Microwave oven
0 Security system
0 Pool equipment
0 TV antenna/satellite dish
0 Washer
0 Window/wall ate
0 Pool heater
0 Water softener/purifier
0 Dryer
0 Generator
0 Spa or hot tub with heater 0 Storm shutters and
0 Stand-alone ice maker
0 Above ground pool
panels
The only other items of Personal Property included in this purchase, and any additional details regarding
Personal Property, if necessary, are: .!..:lN!!.!/A::L-_ _ _ _ _ _ _ _ _ _ _ __ _ __ _ _ __ __
Personal Property is included in the Purchase Price, has no contributory value, and shall be left for the Buyer.
(e) The following items are excluded from the purchase: !.CN~/A..!..__ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _
• 2. PURCHASE PRICE (U.S. currency): ..... ... .. ... . . . . ............ .. ... .. . . ..... $
•
(a) Initial deposit to be held in escrow in the amount of (checks subject to COLLECTION) $
225,000.00
10 000.00
The initial deposit made payable and delivered to "Escrow Agent" named below
(CHECK ONE): 0 accompanies offer or 0 is to be made upon acceptance (Effective Date)
or 0 is to be made within _ _ (if blank, then 3) days after Effective Date
Escrow Agent Information: Name:
***
Address:
Phone: _ _ _ _ __
E-mail:
Fax: _ __ _ _ __
•
•
(b) Additional deposit to be delivered to Escrow Agent within
(if blank, then 3)
•
days after Effective Date.. . . .. ........... ... .. .......... . . . ........ ... . . ... $
N/A
(All deposits paid or agreed to be paid, are collectively referred to as the "Deposit")
•
$200,000.00
(c) Financing: Express as a dollar amount or percentage ("Loan Amount") see Paragraph 8. .
•
(d) Other: See Paragraph 20
.. $._ _ _ __ _
(e) Balance to close (not including Buyer's closing costs, prepaids and prorations) by wire
•
transfer or other COLLECTED funds .... . ...... . .. . ... ... .... . ... .. ... .. . .... $
15 000.00
NOTE: For the definition of "COLLECTION" or "COLLECTED" see STANDARDS.
3. TIME FOR ACCEPTANCE OF OFFER AND COUNTER-OFFERS; EFFECTIVE DATE:
•
(a) If not signed by Buyer and Seller, and an executed copy delivered to all parties on or before --,----,-- - •
.,...,.---- - - - -·this offer shall be deemed withdrawn and the Deposit, if any, will be returned to Buyer.
Unless otherwise stated, time for acceptance of any counter-offers shall be within 2 days after the day the
counter-offer is delivered.
(b) The effective date of this Contract will be the date when the last one of the Buyer and Seller has signed or
initialed this offer or final counter-offer ("Effective Date").
4. CLOSING DATE: Unless modified by other provisions of this Contract, the closing of this transaction shall occur
and the closing documents required to be furnished by each party pursuant to this Contract shall be delivered
•
May 12, 2011
('Closing Date"}, at the time established by the Closing Agen t.
('Closing") on
•
•
•
•
Buyer's Initials
Page 1 of 11
Seller's Initials----- _ _ _ __
Flo ridaRealtors/FioridaBar-1 Rev. 6/[email protected] 2010 Florida Reallors® and The Florida Bar. All rights reserved.
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800-499-9612
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50
51
52
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EXTENSION OF CLOSING DATE:
(a) If Closing funds from Buyer's lender(s) are not available at time of Closing due to Truth In Lending Act (TI LA)
notice requirements, Closing shall be extended for such period necessary to satisfy TILA notice requirements,
not to exceed 7 days.
(b) If extreme weather or other condition or event constituting "Force Majeure" (see STANDARD G) causes:
(i) disruption of utilities or other services essential for Closing, or (ii) Hazard, Wind, Flood or Homeowners'
56
insurance, to become unavailable prior to Closing, Closing will be extended a reasonable time up to 3 days
57
after restoration of utilities and other services essential to Closing, and availability of applicable Hazard, Wind,
58
Flood or Homeowners' insurance. If restoration of such utilities or services and availability of insurance has not
(if left blank, 14) days after Closing Date, then either party may terminate this
59 *
occurred within
60
Contract by delivering written notice to the other party, and Buyer shall be refunded the Deposit, thereby
61
releasing Buyer and Seller from all further obligations under this Contract.
62 6. OCCUPANCY AND POSSESSION: Unless otherwise stated herein, Seller shall, at Closing, have removed all
63
personal items and trash from the Property and shall deliver occupancy and possession, along with all keys,
64
garage door openers, access devices and codes, as applicable, to Buyer. If Property is intended to be rented or
65
occupied beyond Closing, the fact and terms thereof and the tenant(s) or occupants shall be disclosed pursuant
66
to STANDARD D. If occupancy is to be delivered before Closing, Buyer assumes all risks of loss to Property from
67
date of occupancy, shall be responsible and liable for maintenance from that date, and shall be deemed to have
68
accepted Property in its existing condition as of time of taking occupancy, except with respect to any items
69
identified by Buyer pursuant to Paragraph 12 prior to taking occupancy which require repair, replacement,
70
treatment or remedy.
71 * 7. ASSIGNABILITY: (CHECK ONE) Buyer 0 may assign and thereby be released from any further liability
72 •
under this Contract; J8l may assign but not be released from liability under this Contract; or 0 may not assign
73
this Contract.
74
FINANCING
75 8. FINANCING:
76 •
0 (a) Buyer will pay cash or may obtain a loan for the purchase of the Property. There is no financing
77
contingency to Buyer's obligation to close.
78 •
t8l (b) This Contract is contingent upon Buyer obtaining a written loan commitment for a t8l conventional 0 FHA
79 •
O VA loan on the following terms within
(if blank, then 30) days after Effective Date ("Loan
80 •
Commitment Date") for: (CHECK ONE): ~fixed , [ Iadjustable, 0 fixed or adjustable rate loan in
81 •
the principal amount of$
165,000.00
or
%of the Purchase Price, at an initial interest rate
82 •
not to exceed
5
% (if blank, then prevailing rate based upon Buyer's creditworthiness), and for a
83 •
term of
30
years ("Financing").
84 •
Buyer will make mortgage loan application for the Financing within
(if blank, then 5) days after
85
Effective Date and use good faith and diligent effort to obtain a written loan commitment for the Financing
86
('Loan Commitment") and close this Contract. Buyer shall keep Seller and Broker fully informed about
87
the status of mortgage loan application and Loan Commitment and authorizes Buyer's mortgage broker and
88
Buyer's lender to disclose such status and progress to Seller and Broker.
89
If Buyer does not receive Loan Commitment, then Buyer may terminate this Contract by delivering written
90
notice to Seller, and the Deposit shall be refunded to Buyer, thereby releasing Buyer and Seller from all
91
further obligations under this Contract.
92
If Buyer does not deliver written notice to Seller of receipt of Loan Commitment or Buyer's written waiver of
93
this financing contingency, then after Loan Commitment Date Seller may terminate this Contract by
94
delivering written notice to Buyer and the Deposit shall be refunded to Buyer, thereby releasing Buyer and
95
Seller from all further obligations under this Contract.
96
If Buyer delivers written notice of receipt of Loan Commitment to Seller and this Contract does not
97
thereafter close, the Deposit shall be paid to Seller unless failure to close is due to: (1) Seller's default;
98
(2) Property related conditions of the Loan Commitment have not been met (except when such conditions
99
are waived by other provisions of this Contract); (3) appraisal of the Property obtained by Buyer's lender is
100
insufficient to meet terms of the Loan Commitment; or (4) the loan is not funded due to financial failure of
101
Buyer's lender, in which event(s) the Deposit shall be returned to Buyer, thereby releasing Buyer and Seller
102
from all further obligations under this Contract.
103 •
0 (c) Assumption of existing mortgage (see rider for terms).
104 *
0 (d) Purchase money note and mortgage to Seller (see riders; addenda; or special clauses for terms).
5.
Page 2 of 11
Buyer's Initials
Seller's Initials _ _ _ _ _ __ _ __
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CLOSING COSTS, FEES AND CHARGES
CLOSING COSTS; TITLE INSURANCE; SURVEY; HOME WARRANTY; SPECIAL ASSESSMENTS:
(a) COSTS TO BE PAID BY SELLER:
· HONCondominium Association estoppel fees
· Documentary stamp taxes and surtax on deed, if any
· Owner's Policy and Charges (if Paragraph 9(c)(i) is checked) · Recording and other fees needed to cure title
· Seller's attorneys' fees
· Title search charges (if Paragraph 9(c)(iii) is checked)
· Other: -...,..,----,-,-~-:-:----=------:---:-----....,...,-,----:=---:---::-:-.,....-.,..,...--:-:.,..-.,..----,--~--Seller will pay the following amounts/percentages of the Purchase Price for the following costs and expenses:
(i) up to $
or
% (1.5% if left blank) for General Repair Items ("General Repair
Limit"); and
(ii) up to $·..,.,--.,------ or _ _ __ % (1.5% if left blank) for WOO treatment and repairs ("WOO
Repair Limit"); and
(iii) up to $
or
% (1 .5% if left blank) for costs associated with closing out open
or expired building permits and obtaining required building permits for any existing improvement for which a
permit was not obtained ("Permit Limir').
If, prior to Closing, Seller is unable to meet the Maintenance Requirement as required by Paragraph 11 or
the repairs, replacements, treatments or permitting as required by Paragraph 12, then, sums equal to 125% of
estimated costs to complete the applicable item(s) (but, not in excess of applicable General Repair, WOO
Repair, and Permit Limits set forth above, if any) shall be escrowed at Closing. If actual cost of required
repairs, replacements, treatment or permitting exceed applicable escrowed amounts. Seller shall pay such
actual costs (but, not in excess of applicable General Repair, WOO Repair, and Permit Limits set forth above).
Any unused portion of escrowed amount(s) shall be returned to Seller.
(b) COSTS TO BE PAID BY BUYER:
· Loan expenses
· Taxes and recording fees on notes and mortgages
· Appraisal fees
· Recording fees for deed and financing statements
· Buyer's Inspections
· Owner's Policy and Charges (if Paragraph 9(c)(ii) is checked)
· Buyer's attorneys' fees
· Survey (and elevation certification, if required)
· All property related insurance
· Lender' s title policy and endorsements
· HONCondominium Association application/transfer fees
· Other: - -- - - - - - -- ----,-.,.....,-- - ----..,.,.,..,-,---,--,,----=-----=-- --:-----:--::-.,..-,---,-=--,----..,.=(c) TITLE EVIDENCE AND INSURANCE: At least
(if blank, then 5) days prior to Closing Date, a title
insurance commitment issued by a Florida licensed title insurer, with legible copies of instruments listed as
exceptions attached thereto ("Title Commitment") and, after Closing, an owner's policy of title insurance (see
STANDARD A for terms) shall be obtained and delivered to Buyer. If Seller has an owner's policy of title
insurance covering the Real Property, a copy shall be furnished to Buyer and Closing Agent within 5 days after
Effective Date. The owner's title policy premium and charges for owner's policy endorsements, title search,
and closing services (collectively, "'Owner's Policy and Charges") shall be paid, as set forth below
{.gHECK ONE):
0 (i) Seller will designate Closing Agent and pay for Owner's Policy and Charges (but not including charges
for closing services related to Buyer's lender's policy and endorsements and loan closing, which amounts
shall be paid by Buyer to Closing Agent or such other provider(s) as Buyer may select); or
t8J (ii) Buyer will designate Closing Agent and pay for Owner's Policy and Charges and charges for closing
services related to Buyer's lender's policy, endorsements, and loan closing; or
0 (iii) [MIAMI-DADE/BROWARD REGIONAL PROVISION]: Seller will furnish a copy of a prior owner's policy
of title insurance or other evidence of title and pay fees for: (A) a continuation or update of such title evidence,
which is acceptable to Buyer's title insurance underwriter for reissue of coverage; (B) tax search; and
(C) municipal lien search. Buyer shall obtain and pay for post-Closing continuation and premium for Buyer's
owner's policy, and if applicable, Buyer's lender's policy. Seller shall not be obligated to pay more than
$
(if blank, $200.00) for abstract continuation or title search ordered or performed by Closing
Agent.
(d) SURVEY: At least 5 days prior to Closing, Buyer may, at Buyer's expense, have the Real Property surveyed
and certified by a registered Florida surveyor ("Survey"). If Seller has a survey covering the Real Property, a
copy shall be furnished to Buyer and Closing Agent within 5 days after Effective Date.
(e) HOME WARRANTY: At Closing, 0 Buyer J81Seller 0 N/A will pay for a home warranty plan issued by
**"*************
at a cost not to exceed $
600.00
. A home
warranty plan provides for repair or replacement of many of a home's mechanical systems and major built-in
appliances in the event of breakdown due to normal wear and tear during the agreement's warranty period.
(f) SPECIAL ASSESSMENTS: At Closing, Seller will pay: (i) the full amount of liens imposed by a public body
("public body" does not include a Condominium or Homeowner's Association) that are certified, confirmed and
ratified before Closing; and (ii) the amount of the public body's most recent estimate or assessment for an
Buyer's Initials
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improvement which is substantially complete as of Effective Date, but that has not resulted in a lien being
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imposed on the Property before Closing. Buyer will pay all other assessments. If special assessments may
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be paid in installments (CHECK ONE):
157 *
0 (a) Seller shall pay installments due prior to Closing and Buyer shall pay installments due after
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Closing. Installments prepaid or due for the year of Closing shall be prorated.
159 *
0 (b) Seller shall pay the assessment(s) in full prior to or at the time of Closing.
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IF NEITHER BOX IS CHECKED, THEN OPTION (a) SHALL BE DEEMED SELECTED.
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This Paragraph 9(f) shall not apply to a special benefit tax lien imposed by a community development district
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(CDD) pursuant to Chapter 190 F.S. which lien shall be treated as an ad valorem tax and prorated pursuant to
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STANDARD K.
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DISCLOSURES
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10. DISCLOSURES:
166
(a) RADON GAS : Radon is a naturally occurring radioactive gas that, when it is accumulated in a building in
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sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of radon that
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exceed federal and state guidelines have been found in buildings in Florida. Additional information regarding
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radon and radon testing may be obtained from your county health department.
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(b) PERMITS DISCLOSURE: Except as may have been disclosed by Seller to Buyer in a written disclosure,
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Seller does not know of any improvements made to the Property w hich were made without required
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permits or made pursuant to permits which have not been properly closed.
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(c) MOLD: Mold is naturally occurring and may cause health risks or damage to property. If Buyer is concerned or
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desires additional information regarding mold, Buyer should contact an appropriate professional.
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(d) FLOOD ZONE; ELEVATION CERTIFICATION: Buyer is advised to verify by elevation certificate which flood
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zone the Property is in, whether flood insurance is required by Buyer's lender, and what restrictions apply to
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improving the Property and rebuilding in the event of casualty. If Property is in a "Special Flood Hazard Area"
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or "Coastal High Hazard Area" and finished floor elevation is below minimum flood elevation, Buyer may
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terminate this Contract by delivering written notice to Seller within 20 days after Effective Date, failing which
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Buyer accepts existing elevation of buildings and flood zone designation of Property.
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(e) ENERGY BROCHURE: Buyer acknowledges receipt of Florida Energy-Efficiency Rating Information Brochure
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required by Section 553.996, F.S.
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(f) LEAD-BASED PAINT: If Property includes pre-1978 residential housing, a lead-based paint rider is
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mandatory.
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(g) HOMEOWNERS' ASSOCIATION/COMMUNITY DISCLOSURE: BUYER SHOULD NOT EXECUTE THIS
186
CONTRACT
UNTIL
BUYER
HAS
RECEIVED
AND
READ
THE
HOMEOWNERS'
187
ASSOCIATION/COMMUNITY DISCLOSURE, IF APPLICABLE.
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(h) PROPERTY TAX DISCLOSURE SUMMARY: BUYER SHOULD NOT RELY ON THE SELLER'S CURRENT
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PROPERTY TAXES AS THE AMOUNT OF PROPERTY TAXES THAT THE BUYER MAY BE OBLIGATED
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TO PAY IN THE YEAR SUBSEQUENT TO PURCHASE. A CHANGE OF OWNE RSHI P OR PROPERTY
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IMPROVEMENTS TRIGGERS REASSESSMENTS OF THE PROPERTY THAT COULD RESULT IN HIGHER
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PROPERTY TAXES. IF YOU HAVE ANY QUESTIONS CONCERNING VALUATION, CONTACT THE
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COUNTY PROPERTY APPRAISER'S OFFICE FOR INFORMATION.
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(i) TAX WITHHOLDING: If Seller is a Foreign person" as defined by the Foreign Investment in Real Property Tax
195
Act ("FIRPTA"), Buyer and Seller will comply with FIRPTA, which may require Seller to provide additional cash
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at Closing.
197
0) SELLER DISCLOSURE: Seller knows of no facts materially affecting the value of the Real Property which are
198
not readily observable and which have not been disclosed to Buyer.
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PROPERTY MAINTENANCE, CONDITION, INSPECTIONS AND EXAMINATIONS
200 11. PROPERTY MAINTENANCE: Except for ordinary wear and tear and Casualty Loss, and those repairs,
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replacements or treatments required to be made by this Contract, Seller shall maintain the Property, including, but
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not limited to, lawn, shrubbery, and pool, in the condition existing as of Effective Date ("Maintenance
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Requirement").
204
12. PROPERTY INSPECT ION AND REPAIR:
205
(a) INSPECTION PERIOD: By the earlier of 15 days after Effective Date or 5 days prior to Closing Date
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("Inspection Period"), Buyer may, at Buyer's expense, conduct "General", "WDO", and "Permit" Inspections
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described below. if Buyer fails to timely deliver to Seller a written notice or report required by (b), (c), or (d)
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below, then, except for Seller's continuing Maintenance Requirement, Buyer shall have waived Seller's
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obligation(s) to repair, replace, treat or remedy the matters not inspected and timely reported. If this Contract
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does not close, Buyer will repair all damage to Property resulting from Buyer's inspections, return Property to
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its pre-inspection condition and provide Seller with paid receipts for all work done on Property upon its
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completion.
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(b) GENERAL PROPERTY INSPECTION AND REPAIR:
.
(i) General Inspection: Those items specified in Paragraph 12(b)(ii) below, which Seller is obligated to repair
or replace ("General Repair Items") may be inspected ("General Inspection") by a person who specializes in
and holds an occupational license (if required by law) to conduct home inspections or who holds a Florida
license to repair and maintain the items inspected ("Professional Inspector''). Buyer shall, within the Inspection
Period, inform Seller of any General Repair Items that are not in the condition required by (b)(ii) below by
delivering to Seller either a written notice or a copy of the portion of Professional Inspector's written report
dealing with such items.
(ii) Property Condition: The following items shall be free of leaks, water damage or structural damage:
ceiling, roof (including fascia and soffits), exterior and interior walls, doors, windows, and foundation. The
above items together with pool, pool equipment, non-leased major appliances, heating, cooling, mechanical,
electrical, security, sprinkler, septic and plumbing systems and machinery, seawalls, and dockage, are, and
shall be maintained until Closing, in "Working Condition" (defined below). Torn screens (including pool and patio
screens), fogged windows, and missing roof tiles or shingles will be repaired or replaced by Seller prior to
Closing. Seller is not required to repair or replace 'Cosmetic Conditions" (defined below), unless the Cosmetic
Conditions resulted from a defect in an item Seller is obligated to repair or replace. 'Working Condition" means
operating in the manner in which the item was designed to operate. "Cosmetic Conditions" means aesthetic
imperfections that do not affect Working Condition of the item, including, but not limited to, pitted marcite;
tears, worn spots and discoloration of floor coverings, wallpapers, or window treatments; nail holes, scrapes,
scratches, dents, chips or caulking in ceilings, walls, flooring, tile, fixtures, or mirrors; and minor cracks in
walls, floor tiles, windows, driveways, sidewalks, pool decks, and garage and patio floors. Cracked
roof tiles, curling or worn shingles, or limited roof life shall not be considered defects Seller must repair
or replace, so long as there is no evidence of actual leaks, leakage or structural damage.
(iii) General Property Repairs: Seller is only obligated to make such general repairs as are necessary to
bring items into the condition specified in Paragraph 12(b)(ii) above. Seller will, within 5 days after receipt of
Buyer's written notice or General Inspection report, either have the reported repairs to General Repair Items
estimated by an appropriately licensed person and a copy delivered to Buyer, or have a second inspection
made by a Professional Inspector and provide a copy of such report and estimates of repairs to Buyer. If
Buyer's and Seller's inspection reports differ and the parties cannot resolve the differences, Buyer and
Seller together will choose, and equally split the cost of, a third Professional Inspector, whose written report
will be binding on the parties.
If costs to repair General Repair Items equals or is less than the General Repair Limit, Seller will have repairs
made in accordance with Paragraph 12(f). If cost to repair General Repair Items exceeds the General
Repair Limit, then within 5 days after a party's receipt of the last estimate: (A) Seller may elect to pay the
excess by delivering written notice to Buyer, or (B) Buyer may deliver written notice to Seller designating which
repairs of General Repair Items Seller shall make (at a total cost to Seller not exceeding the General Repair
Limit) and agreeing to accept the balance of General Repair Items in their "as is" condition, subject to Seller's
continuing Maintenance Requirement If neither party delivers such written notice to the other, then either party
may terminate this Contract and Buyer shall be refunded the Deposit, thereby releasing Buyer and Seller from
all further obligations under this Contract.
(c) WOOD DESTROYING ORGANISM (" WOO") INSPECTION AND REPAIR:
(i) WOO Inspectio n: The Property may be inspected by a Florida-licensed pest control business ("WOO
Inspector") to determine the existence of past or present WOO infestation and damage caused by infestation
("WOO Inspection"). Buyer shall, within the Inspection Period, deliver a copy of the WOO Inspector's written
report to Seller if any evidence of WOO infestation or damage is found. "Wood Destroying Organism" ("WOO")
means arthropod or plant life, including termites, powder-post beetles, oldhouse borers and wood-decaying
fungi, that damages or infests seasoned wood in a structure, excluding fences.
(ii) WOO Repairs: If Seller previously treated the Property for the type of WOO found by Buyer's WOO
Inspection, Seller does not have to retreat the Property if there is no visible live infestation, and Seller, at
Seller's cost, transfers to Buyer at Closing a current full treatment warranty for the type of WOO fou nd. Seller
will, within 5 days after receipt of Buyer's WOO Inspector's report, have reported WOO damage estimated by
an appropriately licensed person, necessary corrective treatment, if any, estimated by a WOO Inspector, and a
copy delivered to Buyer. Seller will have treatments and repairs made in accordance with Paragraph 12(f)
below up to the WOO Repair Limit. If cost to treat and repair the WOO infestations and damage to
Property exceeds the WOO Repair Limit, then within 5 days after receipt of Seller's estimate, Buyer may
deliver written notice to Seller agreeing to pay the excess, or designating which WOO repairs Seller shall
make (at a total cost to Seller not exceeding the WOO Repair Limit), and accepting the balance of the Property
in its "as is" condition with regard to WOO infestation and damage, subject to Seller's continuing Maintenance
Requirement. If Buyer does not deliver such written notice to Seller, then either party may terminate this
Buyer's Initials
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Contract by written notice to the other, and Buyer shall be refunded the Deposit, thereby releasing Buyer and
Seller from all further obligations under this Contract.
(d) INSPECTION AND CLOSE-OUT OF BUILDING PERMITS:
(i) Permit Inspection: Buyer may have an inspection and examination of records and documents made to
determine whether there exist any open or expired building permits or unpermitted improvements to the
Property ("Permit Inspection"). Buyer shall, within the Inspection Period, deliver written notice to Seller of the
existence of any open or expired building permits or unpermitted improvements to the Property.
(ii) Close-Out of Building Permits: Seller will, within 5 days after receipt of Buyer's Permit Inspection
notice, have an estimate of costs to remedy Permit Inspection items prepared by an appropriately licensed
person and a copy delivered to Buyer. No later than 5 days prior to Closing Date, Seller shall, up to the Permit
Limit have open and expired building permits identified by Buyer or known to Seller closed by the applicable
governmental entity, and obtain and close any required building permits for improvements to the Property.
Prior to Closing Date, Seller will provide Buyer with any written documentation that all open and expired
building permits identified by Buyer or known to Seller have been closed out and that Seller has obtained
required building permits for improvements to the Property. If final permit inspections cannot be performed due
to delays by the governmental entity, Closing Date shall be extended for up to 10 days to complete such final
inspections, failing which, either party may terminate this Contract, and Buyer shall be refunded the Deposit,
thereby releasing Buyer and Seller from all further obligations under this Contract.
If cost to close open or expired building permits or to remedy any permit violation of any governmental entity
exceeds Permit Limit, then within 5 days after a party's receipt of estimates of cost to remedy: (A) Seller may
elect to pay the excess by delivering written notice to Buyer; or (B) Buyer may deliver written notice to Seller
accepting the Property in its "as is" condition with regard to building permit status and agreeing to receive
credit from Seller at Closing in the amount of Permit Limit. If neither party delivers such written notice to the
other, then either party may terminate this Contract and Buyer shall be refunded the Deposit, thereby releasing
Buyer and Seller from all further obligations under this Contract.
(e) WALK-THROUGH INSPECTION/RE-INSPECTION: On the day prior to Closing Date. or on Closing Date prior
to time of Closing, as specified by Buyer, Buyer or Buyer's representative may perform a walk-through (and
follow-up walk-through, if necessary) inspection of the Property solely to confirm that all items of Personal
Property are on the Property and to verify that Seller has maintained the Property as required by the
Maintenance Requirement, has made repairs and replacements required by this Contract, and has met all
other contractual obligations.
(f) REPAIR STANDARDS; ASSIGNMENT OF REPAIR AND TREATMENT CONTRACTS AND WARRANTIES:
All repairs and replacements shall be completed in a good and workmanlike manner by an appropriately
licensed person, in accordance with all requirements of law, and shall consist of materials or items of quality,
value, capacity and performance comparable to, or better than , that existing as of the Effective Date. Except
as provided in Paragraph 12(c)(ii), at Buyer's option and cost, Seller will, at Closing, assign all assignable
repair, treatmen t and maintenance contracts and warranties to Buyer.
ESCROW AGENT AND BROKER
13. ESCROW AGENT: Any Closing Agent or Escrow Agent (collectively "Agent") receiving the Deposit, other funds
and other items is authorized, and agrees by acceptance of them, to deposit them promptly, hold same in escrow
within the State of Florida and, subject to COLLECTION, disburse them in accordance with terms and conditions
of this Contract. Failure of funds to become COLLECTED shall not excuse Buyer's performance. When conflicting
demands for the Deposit are received, or Agent has a good faith doubt as to entitlement to the Deposit, Agent
may take such actions permitted by this Paragraph 13, as Agent deems advisable. If in doubt as to Agent's duties
or liabilities under this Contract, Agent may, at Agent's option, continue to hold the subject matter of the escrow
until the parties agree to its disbursement or until a final judgment of a court of competent jurisdiction shall
determine the rights of the parties, or Agent may deposit same with the clerk of the circuit court having jurisdiction
of the dispute. An attorney who represents a party and also acts as Agent may represent such party in such
action. Upon notifying all parties concerned of such action, all liability on the part of Agent shall fully terminate,
except to the extent of accounting for any items previously delivered out of escrow. If a licensed real estate
broker, Agent will comply with provisions of Chapter 475, F.S., as amended and FREC rules to timely resolve
escrow disputes through mediation, arbitration, interpleader or an escrow disbursement order.
Any proceeding between Buyer and Seller wherein Agent is made a party because of acting as Agent hereunder,
or in any proceeding where Agent interpleads the subject matter of the escrow, Agent shall recover reasonable
attorney's fees and costs incurred, to be paid pursuant to court order out of the escrowed funds or equivalent.
Agent shall not be liable to any party or person for mis-delivery of any escrowed items, unless such mis-delivery is
due to Agent's willful breach of this Contract or Agent's gross negligence. This Paragraph 13 shall survive Closing
or termination of this Contract.
14. PROFESSIONAL ADVICE; BROKER LIABILITY: Broker advises Buyer and Seller to verify Property condition,
square footage, and all other facts and representations made pursuant to this Contract and to consult appropriate
Buyer's Initials
Page 6 of 11
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professionals for legal, tax, environmental, and other specialized advice concerning matters affecting the Property
and the transaction contemplated by this Contract. Broker represents to Buyer that Broker does not reside on the
Property and that all representations (oral, written or otherwise) by Broker are based on Seller representations or
public records. BUYER AGREES TO RELY SOLELY ON SELLER, PROFESSIONAL INSPECTORS AND
GOVERNMENTAL AGENCIES FOR VERIFICATION OF PROPERTY CONDITION, SQUARE FOOTAGE AND
FACTS THAT MATERIALLY AFFECT PROPERTY VALUE AND NOT ON THE REPRESENTATIONS (ORAL,
WRITTEN OR OTHERWISE) OF BROKER. Buyer and Seller (individually, Ute 'Indemnifying Party") each
individually indemnifies, holds harmless, and releases Broker and Broker's officers. directors, agents and
employees from all liability for loss or damage, including all costs and expenses, and reasonable attorney's fees
at all levels, suffered or incurred by Broker and Broker's officers, directors, agents and employees in connection
with or arising from claims, demands or causes of action instituted by Buyer or Seller based on: (i) inaccuracy of
information provided by the Indemnifying Party or from public records; (ii) Indemnifying Party's misstatement(s) or
failure to perform contractual obligations; (iii) Broker's performance, at Indemnifying Party's request, of any task
beyond the scope of services regulated by Chapter 475, F.S., as amended, including Broker's referral,
recommendation or retention of any vendor for, or on behalf of Indemnifying Party; (iv) products or services
provided by any such vendor for, or on behalf of, Indemnifying Party; and (v) expenses incurred by any such
vendor. Buyer and Seller each assumes full responsibility for selecting and compensating their respective
vendors and paying their other costs under this Contract whether or not this transaction closes. This
Paragraph 14 will not relieve Broker of statutory obligations under Chapter 475, F.S., as amended. For purposes
of this Paragraph 14, Broker will be treated as a party to this Contract. This Paragraph 14 shall survive Closing or
termination of this Contract.
DEFAULT AND DISPUTE RESOLUTION
15. DEFAULT:
(a) BUYER DEFAULT: If Buyer fails, neglects or refuses to perform Buyer's obligations under this Contract,
including payment of the Deposit, within the time(s) specified, Seller may elect to recover and retain the
Deposit for the account of Seller as agreed upon liquidated damages, consideration for execution of this
Contract, and in full settlement of any claims, whereupon Buyer and Seller shall be relieved from all further
obligations under this Contract, or Seller, at Seller's option, may, pursuant to Paragraph 16, proceed in equity
to enforce Seller's rights under this Contract. The portion of the Deposit, if any, paid to Listing Broker upon
default by Buyer, shall be split equally between Listing Broker and Cooperating Broker; provided however,
Cooperating Brokers share shall not be greater than the commission amount Listing Broker had agreed to pay
to Cooperating Broker.
{b) SELLER DEFAULT: If for any reason other than failure of Seller to make Seller's title marketable after
reasonable diligent effort, Seller fails, neglects or refuses to perform Seller's obligations under this Contract,
Buyer may elect to receive return of Buyer's Deposit without thereby waiving any action for damages resulting
from Seller's breach, and, pursuant to Paragraph 16, may seek to recover such damages or seek specific
performance.
This Paragraph 15 shall survive Closing or termination of this Contract.
16. DISPUTE RESOLUTION: Unresolved controversies, claims and other matters in question between Buyer and
Seller arising out of, or relating to, this Contract or its breach, enforcement or interpretation ("Dispute") will be
settled as follows:
(a) Buyer and Seller will have 10 days after the date conflicting demands for the Deposit are made to attempt to
resolve such Dispute, failing which, Buyer and Seller shall submit such Dispute to mediation under
Paragraph 16(b).
(b) Buyer and Seller shall attempt to settle Disputes in an amicable manner through mediation pursuant to Florida
Rules for Certified and Court-Appointed Mediators and Chapter 44, F.S. , as amended (the "Mediation Rules").
The mediator must be certified or must have experience in the real estate industry. Injunctive relief may be
sought without first complying with this Paragraph 16(b). Disputes not settled pursuant to this Paragraph 16
may be resolved by instituting action in the appropriate court having jurisdiction of the matter.
This Paragraph 16 shall survive Closing or termination of this Contract.
17. ATTORNEY'S FEES; COSTS : The parties will split equally any mediation fee incurred in any mediation permitted
by this Contract, and each party will pay their own costs, expenses and fees, including attorney's fees, incurred in
conducting the mediation. In any litigation permitted by this Contract, the prevailing party shall be entitled to
recover from the non-prevailing party costs and fees, including reasonable attorney's fees, incurred in conducting
the litigation. This Paragraph 17 shall survive Closing or termination of this Contract.
STANDARDS FOR REAL ESTATE TRANSACTIONS ("STANDARDS")
18. STANDARDS:
A. TITLE:
(I) TITLE EVIDENCE; RESTRICTIONS; EASEMENTS; LIMITATIONS: Within the time period provided in
Paragraph 9(c), the Title Commitment, with legible copies of instruments listed as exceptions attached thereto, shall
Buyer's Initials
Page 7 of 11
Seller's Initials _ _ _ __ _ _ _ __
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398
399
400
401
402
403
404
405
406
407
408
409
410
411
412
413
414
415
416
417
418
419
420
421
422
423
424
425
426
427
428
429
430
431
432
433
434
435
436
437
438
439
440
44 1
442
443
444
445
446
447
448
449
450
451
STANDARDS FOR REAL ESTATE TRANSACTIONS (CONTINUED)
be issued and delivered to Buyer. The Title Commitment shall set forth those matters to be discharged by Seller at or
before Closing and shall provide that, upon recording of the deed to Buyer, an owner's policy of title insurance in the
amount of the Purchase Price, shall be issued to Buyer insuring Buyer's marketable title to the Real Property, subject
only to the following matters: (a) comprehensive land use plans, zoning, and other land use restrictions, prohibitions
and requirements imposed by governmental authority; (b) restrictions and matters appearing on the Plat or otherwise
common to the subdivision; (c) outstanding oil, gas and mineral rights of record without right of entry; (d) unplatted
public utility easements of record (located contiguous to real property lines and not more than 10 feet in width as to
rear or front lines and 7 1/2 feet in width as to side Lines); (e) taxes for year of Closing and subsequent years; and (f)
assumed mortgages and purchase money mortgages, if any (if additional items, attach addendum); provided, that,
unless waived by Paragraph 12 (a), there exists at Closing no violation of the fo regoing and none prevent use of the
Property for RESIDENTIAL PURPOSES. If there exists at Closing any violation of items identified in (b) - (f) above,
then the same shall be deemed a title defect. Marketable title shall be determined according to applicable Title
Standards adopted by authority of The Florida Bar and in accordance with law.
(ii) TITLE EXAMINATION: Buyer shall have 5 days after receipt of Title Commitment to examine it and notify
Seller in writing specifying defect(s), if any, that render title unmarketable. If Seller provides Title Commitment and it
is delivered to Buyer less than 5 days prior to Closing Date, Buyer may extend Closing for up to 5 days after
date of receipt to examine same in accordance with this STANDARD A. Seller shall have 30 days ("Cure Period")
after receipt of Buyer's notice to take reasonable diligent efforts to remove defects. If Buyer fa ils to so notify Seller,
Buyer shall be deemed to have accepted title as it then is. If Seller cures defects within Cure Period, Seller will
deliver written notice to Buyer (with proof of cure acceptable to Buyer and Buyer's attorney) and the parties will
close this Contract on Closing Date (or if Closing Date has passed. within 10 days after Buyer's receipt of Seller's
notice). If Seller is unable to cure defects within Cure Period, then Buyer may, within 5 days after expiration of
Cure Period, deliver written notice to Seller: (a) extending Cure Period for a specified period not to exceed 120 days
within which Seller shall continue to use reasonable diligent effort to remove or cure the defects ("Extended Cure
Period"); or (b) electing to accept title with existing defects and close this Contract on Closing Date (or if Closing Date
has passed, within the earlier of 10 days after end of Extended Cure Period or Buyer's receipt of Seller's notice), or
(c) electing to terminate this Contract and receive a refund of the Deposit, thereby releasing Buyer and Seller from
all further obligations under this Contract. If after reasonable diligent effort, Seller is unable to timely cure defects,
and Buyer does not waive the defects, this Contract shall terminate, and Buyer shall receive a refund of the Deposit,
thereby releasing Buyer and Seller from all further obligations under this Contract.
B. SURVEY: If Survey discloses encroachments on the Real Property or that improvements located thereon
encroach on setback lines, easements, or lands of others; or violate any restrictions, covenants, or applicable
governmental regulations described in STANDARD A (i)(a), (b) or (d) above, Buyer shall deliver written notice of such
matters, together with a copy of Survey, to Seller within 5 days after Buyer's receipt of Survey, but no later than
Closing. If Buyer timely delivers such notice and Survey to Seller, such matters identified in the notice and Survey
shall constitute a title defect, subject to cure obligations of STANDARD A above. If Seller has delivered a prior
survey, Seller shall, at Buyer's request, execute an affidavit of "no change" to the Real Property since the
preparation of such prior survey, to the extent the affirmations therein are true and correct.
C. INGRESS AND EGRESS: Seller represents that there is ingress and egress to the Real Property and title to
the Real Property is insurable in accordance with STANDARD A wi thout exception for lack of legal right of access.
D. LEASES: Seller shall, within 5 days after Inspection Period, furnish to Buyer copies of all written leases and
estoppel letters from each tenant specifying nature and duration of tenant's occupancy, ren tal rates, advanced rent
and security deposits paid by tenant, and income and expense statements for preceding 12 months ("Lease
Information"). If Seller is unable to obtain estoppel letters from tenant(s), the same information shall be fu rnished by
Seller to Buyer within that time period in the form of a Seller's affidavit, and Buyer may thereafter contact tenant(s)
to confirm such information. If terms of the lease(s) differ materially from Seller's representations, Buyer may deliver
written notice to Seller within 5 days after receipt of Lease Information, but no later than 5 days prior to Closing
Date, terminating this Contract and receive a refund of the Deposit, thereby releasing Buyer and Seller from all
further obligations under this Contract. Seller shall, at Closing, deliver and assign all original leases to Buyer who
shall assume Seller's obligation thereunder.
E. LIENS: Seller shall furnish to Buyer at Closing an affidavit attesting; (i) to the absence of any financing
statement, claims of lien or potential lienors known to Seller, and (ii) that there have been no improvements or repairs
to the Real Property for 90 days immediately preceding Closing Date. If the Real Property has been improved or
repaired within that time, Seller shall deliver releases or waivers of construction liens executed by a ll general
contractors, subcontractors, suppliers and materialmen in addition to Seller's lien affidavit setting forth names of all
such general contractors, subcontractors, suppliers and materialmen, further affirming that all charges for
improvements or repairs which could serve as a basis for a construction lien or a claim for damages have been paid
or will be paid at Closing.
F. TIME: Calendar days shall be used in computing time periods. Any time periods provided for in this Contract
Buyer's Initials
Page 8 of 11
Seller's Initials _ _ _ _ _ _ _ _ __
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452
453
454
455
456
457
458
459
460
461
462
463
464
465
466
467
468
469
470
471
472
473
474
475
476
477
478
479
480
481
482
483
484
485
486
487
488
489
490
491
492
493
494
495
496
497
498
499
500
501
502
503
504
505
506
507
508
509
510
511
STANDARDS FOR REAL ESTATE TRANSACTIONS (CONTINUED)
which shall end on a Saturday, Sunday, or a national legal holiday (see 5 U.S.C. 6103) shall extend to 5:00 p.m.
(where the Property is located) of the next business day. Time is of the essence in this Contract.
G. FORCE MAJEURE: Buyer or Seller shall not be required to perform any obligation under this Contract or be
liable to each other for damages so long as performance or non-performance of the obligation is delayed, caused or
prevented by Force Majeure. "Force Majeure" means: hurricanes, earthquakes, floods, fire, acts of God, unusual
transportation delays, wars, insurrections, acts of terrorism, and any other cause not reasonably within control of
Buyer or Seller, and which, by exercise of reasonable diligent effort, the non-performing party is unable in whole or in
part to prevent or overcome. All time periods, including Closing Date, will be extended for the period that the Force
Majeure prevents performance under this Contract, provided, however, if such Force Majeure continues to prevent
performance under this Contract more than 14 days beyond Closing Date, then either party may terminate this
Contract by delivering written notice to the other and the Deposit shall be refunded to Buyer, thereby releasing Buyer
and Seller from all further obligations under this Contract.
H. CONVEYANCE: Seller shall convey marketable title to the Real Property by statutory warranty, trustee's,
personal representative's, or guardian's deed, as appropriate to the status of Seller, subject only to matters described
in STANDARD A and those accepted by Buyer. Personal Property shall, at request of Buyer, be transferred by
absolute bill of sale with warranty of title, subject only to such matters as may be provided for in this Contract.
I. CLOSING LOCATION; DOCUMENTS ; AND PROCEDURE:
(i) LOCATION: Closing will take place in the county where the Real Property is located at the office of the
attorney or other closing agent ("Closing Agent") designated by the party paying for the owner's policy of title
insurance, or, if no title insurance, designated by Seller. Closing may be conducted by mail or electronic means.
(ii) CLOSING DOCUMENTS: At Closing, Seller shall furnish and pay for, as applicable, deed, bill of sale,
certificate of title, construction lien affidavit, owner's possession affidavit, assignments of leases, and corrective
instruments. Seller shall provide Buyer with paid receipts for all work done on the Property pursuant to this Contract.
Buyer shall furnish and pay for, as applicable, mortgage, mortgage note, security agreement, financing statements,
survey, base elevation certification, and other documents required by Buyer's lender.
(iii) PROCEDURE: The deed shall be recorded upon COLLECTION of all closing funds. If the Title
Commitment provides insurance against adverse matters pursuant to Section 627.7841 , F.S., as amended, the
escrow closing procedure required by STANDARD J shall be waived, and Closing Agent shall, subject to
COLLECTION of all closing funds, disburse at Closing the brokerage fees to Broker and the net sale proceeds to
Seller.
J. ESCROW CLOSING PROCEDURE: If Title Commitment issued pursuant to Paragraph 9(c) does not provide
for insurance against adverse matters as permitted under Section 627.7841 , F.S., as amended , the following escrow
and closing procedures shall apply: (1) all Closing proceeds shall be held in escrow by the Closing Agent for a period
of not more than 10 days after Closing; (2) if Seller's title is rendered unmarketable, through no fault of Buyer, Buyer
shall, within the 10 day period, notify Seller in writing of the defect and Seller shall have 30 days from date of receipt
of such notification to cure the defect; (3) if Seller fails to timely cure the defect, the Deposit and all Closing funds
paid by Buyer shall, within 5 days after written demand by Buyer, be refunded to Buyer and, simultaneously with
such repayment, Buyer shall return the Personal Property, vacate the Real Property and re -convey the Property to
Seller by special warranty deed and bill of sale; and (4) if Buyer fails to make timely demand fo r refund of the
Deposit, Buyer shall take title as is, waiving all rights against Seller as to any intervening defect except as may be
available to Buyer by virtue of warranties contained in the deed or bill of sale.
K. PRORATIONS; CREDITS: The following recurring items will be made current (if applicable) and prorated as of
the day prior to Closing Date, or date of occupancy if occupancy occurs before Closing Date: real estate taxes
(including special benefit tax assessments imposed by a COD), interest, bonds. association fees, insurance, rents
and other expenses of Property. Buyer shall have option of taking over existing policies of insurance, if assumable, in
which event premiums shall be prorated. Cash at Closing shall be increased or decreased as may be required by
prorations to be made through day prior to Closing. Advance rent and security deposits, if any, will be credited to
Buyer. Escrow deposits held by Seller's mortgagee will be paid to Seller. Taxes shall be prorated based on current
year's tax with due allowance made for maximum allowable discount, homestead and other exemptions. If Closing
occurs on a date when current year's millage is not fixed but current year's assessment is available, taxes will be
prorated based upon such assessment and prior year's millage. If current year's assessment is not available, then
taxes will be prorated on prior year's tax. If there are completed improvements on the Real Property by January 1st of
year of Closing. which improvements were not in existence on January 1st of prior year, then taxes shall be prorated
based upon prior year's millage and at an equitable assessment to be agreed upon between the parties, failing which,
request shall be made to the County Property Appraiser for an informal assessment taking into account available
exemptions. A tax proration based on an estimate shall, at either party's request, be readjusted upon receipt of
current year's tax bill. This STANDARD K shall survive Closing.
L. ACCESS TO PROPERTY TO CONDUCT APPRAISALS, INSPECTIONS, AND WALK-THROUGH: Seller shall,
upon reasonable notice, provide utilities service and access to Property for appraisals and inspections, including a
Buyer's Initials
Page 9 of 11
Seller's Initials - - - - - - - - - -
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512
513
514
515
516
517
518
519
520
521
522
523
524
525
526
527
528
529
530
531
532
533
534
535
536
537
538
539
540
541
542
543
544
545
546
547
548
549
550
551
552
553
554
555
STANDARDS FOR REAL ESTATE TRANSACTIONS (CONTINUED)
walk-through (or follow-up walk-through if necessary) prior to Closing.
M. RISK OF LOSS: If, after Effective Date, but before Closing, Property is damaged by fire or other casualty
("Casualty Loss") and cost of restoration (which shall include cost of pruning or removing damaged trees) does not
exceed 1.5% of Purchase Price, cost of restoration shall be an obligation of Seller and Closing shall proceed
pursuant to terms of this Contract. If restoration is not completed as of Closing, a sum equal to 125% of estimated
cost to complete restoration (not to exceed 1.5% of Purchase Price), will be escrowed at Closing. If actual cost of
restoration exceeds escrowed amount, Seller shall pay such actual costs (but, not in excess of 1.5% of Purchase
Price). Any unused portion of escrowed amount shall be returned to Seller. If case of restoration exceeds 1.5% of
Purchase Price, Buyer shall elect to either take Property "as is" together with the 1.5% or receive a refund of the
Deposit, thereby releasing Buyer and Seller from all further obligations under this Contract. Seller's sole obligation
with respect to tree damage by casualty or other natural occurrence shall be cost of pruning or removal.
N. 1031 EXCHANGE: If either Seller or Buyer wish to enter into a like-kind exchange (either simultaneous with
Closing or deferred) under Section 1031 of the Internal Revenue Code ("Exchange"), the other party shall cooperate
in all reasonable respects to effectuate the Exchange, including execution of documents; provided, however,
cooperating party shall incur no liability or expense related to the Exchange, and Closing shall not be contingent
upon, nor extended or delayed by, such Exchange.
0. CONTRACT NOT RECORDABLE; PERSONS BOUND; NOTICE; COPIES: Neither this Contract nor any
notice of it shall be recorded in any public records. This Contract shall be binding on, and inure to the benefit of, the
parties and their respective heirs or successors in interest. Whenever the context permits, singular shall include plural
and one gender shall include all. Notice and delivery given by or to the attorney or broker (including such broker's real
estate licensee) representing any party shall be as effective as if given by or to that party. All notices must be in
writing and may be made by mail. personal delivery or electronic (including "pdf') media. A legible facsimile or
electronic (including "pdf') copy of this Contract and any signatures hereon shall be considered for all purposes as an
original.
P. INTEGRATION; MODIFICATION: This Contract contains the full and complete understanding and agreement
of Buyer and Seller with respect to the transaction contemplated by this Contract and no prior agreements or
representations shall be binding upon Buyer or Seller unless included in this Contract. No modification to or change
in this Contract shall be valid or binding upon Buyer or Seller unless in writing and executed by the parties intended
to be bound by it.
Q. WAIVER: Failure of Buyer or Seller to insist on compliance with, or strict performance of, any provision of this
Contract, or to take advantage of any right under this Contract, shall not constitute a waiver of other provisions or
rights.
R. RIDERS; ADDENDA; TYPEWRITTEN OR HANDWRITTEN PROVISIONS: Riders, addenda, and typewritten
or handwritten provisions shall control all printed provisions of this Contract in conflict with them.
S. COLLECTION or COLLECTED: "COLLECTION" or "COLLECTED means any checks tendered or received,
including Deposits, have become actually and finally collected and deposited In the account of Escrow Agent
or Closing Agent. Closing and disbursement of funds and delivery of Closing documents may be delayed by
Closing Agent until such amounts have been COLLECTED in Closing Agent's accounts.
T. LOAN COMMITMENT: "Loan Commitment" means a statement by the lender setting forth the terms and
conditions upon which the lender is willing to make a particular mortgage loan to a particular borrower.
U. APPLICABLE LAW AND VENUE: This Contract shall be construed in accordance w ith the laws of the State of
Florida and venue for resolution of all disputes, whether by mediation, arbitration or litigation, shall lie in the county in
which the Real Property is located.
556
ADDENDA AND ADDITIONAL TERMS
557
19. ADDENDA: The following additional terms are included in the attached addenda and incorporated into this
558 • Contract (Check if applicable):
D A. Condominium Assn.
D L. Right to Inspect/
D R. Rezoning
D Y. Seller's Attorney
D B. Homeowners' Assn.
Cancel
D S. Lease Purchase/
Approval
D C. Seller Financing ·
D M. Defective Drywall
Lease Option
D Z. Buyer's Attorney
D D. Mortgage Assumption D N. Coastal Construction D T. Pre-Closing
Approval
D E. FHANA Financing
Control Line
Occupancy
D AA. Licensee-Personal
D F. Appraisal Contingency D 0 . Insulation Disclosure D U. Post-Closing
Interest in Property
D G. Short Sale
D P. Pre-1978 Housing
Occupancy
D BB. Binding Arbitration
D H. Homeowners' Insurance
Statement (Lead
D V. Sale of Buyer's U
Other _ _ _ _ __ _
0 I. FIRPTA
Based Paint)
Property
D J. Interest-Bearing Acct.
D o. Housing for Older Ow. Back-up Contract
D K. "As Is"
Persons
D X. Kick-out Clause
Buyer's Initials
Page 10 of 11
Seller's Initials _ _ _ _ _ _ _ _ __
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559 • 20. ADDITIONAL TERMS:
560 The sale js contingtmt on the current mortgage holder. Joe Moneybags. (j) agreejng to a short sale in return for all net
561
proceeds from the closjng and (ii) extending a purchase money loan of $35.000.00 to the Buyer secured by a second
562
mortgage with interest at the same rate as Buyer's first mortgage payable in equal monthly principal and interest
563 installments over 3 years with a final payment due in fu ll in 3 years.
564
565 Reference pargraph 9(c)(ii): Seller will pay for the premium for the Owner's Policy: Buyer will designate the Closing
566 Agent and pay the Closing Agent's charges.
567
568
569
COUNTER-OFFER/REJECTION
570
571 * 0 Seller counters Buyer's offer (to accept the counter-offer, Buyer must sign or initial the counter-offered terms and
572 deliver a copy of the acceptance to Seller).
573 * 0 Seller rejects Buyer's offer.
574
575
THIS IS INTENDED TO BE A LEGALLY BINDING CONTRACT. IF NOT FULLY UNDERSTOOD, SEEK THE ADVICE
OF AN AHORNEY PRIOR TO SIGNING.
576
THIS FORM HAS BEEN APPROVED BY THE FLORIDA REALTORS AND THE FLORIDA BAR.
577
578
579
580
Approval of this form by the Florida Realtors and The Florida Bar does not constitute an opinion that any of the terms
and conditions in this Contract should be accepted by the parties in a particular transaction. Terms and conditions
should be negotiated based upon the respecti ve interests, objectives and bargaining positions of all Interested
persons.
581
582
AN ASTERISK (*) FOLLOWING A LINE NUMBER IN THE MARGIN INDICATES THE LINE CONTAINS A BLANK TO
BE COMPLETED.
583 • Buyer: __________________~~~~---------------------Betty Buyer
584 • Buyer: _______________________________________________
Date: - - - - - - - - - -
Date: ---------------------
585 • Seller: ---------------=~-=:-:-----------------------­
Sam Flipper
Date: - - - - - - - -- -
586 • Seller: - - - - - - ---------------------------------------
Date: - - - - - - -- - -
587
Buyer's address for purposes of notice
588 •
589 .----------------------------------------
Seller's address for purposes of notice
590 · --------- - - - - - - - - - ------------------591
BROKER: Listing and Cooperating Brokers, if any, named below (collectively, "Broker"}, are the only Brokers entitled
592 to compensation in connection with this Contract. Instruction to Closing Agent: Seller and Buyer direct Closing Agent
593 to disburse at Closing the fu ll amount of the brokerage fees as specified in separate brokerage
594 agreements with the parties and cooperative agreements between the Brokers, except to the extent Broker has
595 retained such fees from the escrowed funds. This Contract shall not modify any MLS or other offer of compensation
596
made by Seller or Listing Broker to Cooperating Brokers.
597 •
598 ~--~~~------------Cooperating Sales Associate, if any
Listing Sales Associate
599 ·--------- - - - - - --------------------600 Cooperating Broker, if any
Listing Broker
Page 11 of 11
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OMB Approval No. 2502·0265
A. Settlement Statement (HUD~l)
B. Typo of Loan
Q1.fHA
Q
4. V.A.
e 3. Conv. unlns.
0
2. RHS
0
5. Conv. Ins.
~.
6. Morfp. Ins. Case Num.
1. Loan Numbor
File Number
Rea1E>lilteexam2
10:
c. NOTE:Thislonn Is furnbh•d to gtve you a &tetemont or ectval settlement oosts. Amounts paklto and by the sntttomonlagentare •hown. l toms
marl<ed ' (p.o.c.)" wore paid outs!datho closing; they a~e shown here for Informational purposes nnd are notlnclvded In tho totals.
D. NAME OF BORROWER:
Betty Buyer
Addross of Borrowor:
E. NAME OF SELLER:
Add ross of Seller:
Sam 1'11pper
F. NAME OF LENDER!
Gulf Winds Bank
Addrass of Lendar:
G. PROPERTY LOCATION:
H. SETTLEMENT AGEN'r.
Placo of Settlement:
I. SEffiEMENT OATE:
Exam Taker. Esq.
Phone:
6112111
DISBURSEMENT DATE: 5/12111
K. Summa of sc er s transaction
400. Gross amount uo to soffer:
225,000.00 401. contrecl sales pnce
402. Porsonol property
,, 403.
4()4.
J. Summary of bo rowor's ransactlon
Gr0.. omo\!D_t due from borrowen
101. Contract s;~los prt<:o
~Q.
102. Personal property
103. Selllomont chorges to borrower Ill no 140n)
104.
105.
Ad uslmonta tor !toms paictPueller In !dYan_c_v:
10&. Cllynown taxa3
107. County taxes
108. Assessment$
109.
110.
111.
112.
405.
201. Deposit or oarnost moooy
202. Prtncioar nmount of now loan $
203. Ex!sUng Joan(s) taken subject to
204. Principal smount of second mortgage
205.
208.
207.
208. Principal amt of mortgage held by seller
209.
209a .
210. City/town tax~s .._
aid
509.
509Q.
r
u
n
510. Cllvllown taxes
511. County taxes
211, County taxes
212.Assessments
213.
214.
so er n advanco;
--
.
•
.. ..
·'
--
b &eiier:
512. Asse&stnants
513.
514.
515.
516.
517.
516.
519.
~216.
217.
218.
219.
Z20. Total paid by/for borrower:
300. Cas at setllement f!'Qm/to borrower:
301. Gross amount duo hom borrower (llne120)
302. Less amount paid by/for the borrower
.
.. . . 420. Gross amount due to ;all•r:
500. Reduct ono n amountru••J9 seller:
10.000.00 501. Excess de~$H (see insttucllons)
502. Settlement charges to sellerOrno 1400)
503. Exlstlno toan{s) taken subfeclto
504. Payoff or llfst mortgagoloan
505. Povoff or • eoond mo.i.ua..Oe loan
506.
507. Deposit is b<!Jng d>sbutsad as pr~>eeeds
508. Principal ami of mortgago held by sel!er
seller~
~(I!JFrom oro ) Booower:
••
407. Counly ta.xes
406. Assossmonts
409.
410.
411 .
412.
-
120. Gross amount duo from borrowor:
200. Amounts pald or In beharf o borrower:
..;:..Ad usiAnents.for Items un
0
r
406. Cllyltown toxo•
~-
·-=
225,000.00
(line 220)
--
520. Total reductions In amount duo sollor:
--
600. Cooh at•ettlomont to/ rOriiOiillOr•
601. Gro$$ amount due to seller (line 420)
602. Less tolal reductions In amount duo seher {ijno 520)
603. Cash (
0
To
0
From ) Seller.
The PubKc Reportmg Burden ror this ooltoejton of Information Is estimated at 35 mlnutu per reaponse for coltocUng, revlowtng, and reporting the data. This
e9oncy may not coliect tills lnk>rm$tl<m. and you are not required to compl•t• this form, uniess.it displays a oorrently valid OMB contrornu~r. No
confidentiality I• a•sured; this disclosure Is rnandatOf)'. Thl$ is designed to provide lho parties lo a RESPA oovered transacUon with !nformallon during lh3
••ttJemant process.
DoubleTime®
25
.
U s ' oepanment of tlous!ng and Urban Ooveropment
L. Settlement charao•
~.l~.!!'J Rool Estate Broker Fees
OM.sion of cOmmls"Sion (Una 700) as follows:
701. $
to
702. $
to
703. Commission palcl at settlement
704.
to
70~.
800. Items Povablo in Connoclion with Loan
801. Our origination eh3J'!l$
$500.00 (from GFE #1)
802. Your credit or charge (pooin\i) for the specific interest tute d1o$eU
(from GFE #2)
803. Your ad·usted origination charges
o GulfWmds sank
(fromGFEA)
(!nom GFE WJ)
804. Apprt~l$ al fee
to
(from GFE 113)
805. Credit "'l"'rt
to
(from GFE #3)
to
~-T•x so"'ico
· irrom GFE 1f3)
807. Flood certifiCation
to
808.
to
809.
to
810.
to
811.
to
812.
to
to
813.
9!l!W!§!n.J' Ro_q~ l r~td !!;c.L.!'nder t.9 Bo Paid InAdvance
901 . Daily interest charges from 05112111 to 06101/11
<!!>23.7300
/dav (from GFE #10)
902. Mortoaoe insurance premium for
(fnom GFE #3)
months to
903. Homeowners Insurance premJum
~ears to
-- - - - lfnom_9FE#11)
004. Flood inouraneo premium lor
vcarsto
905.
vears to
HUD-1
~~-·
1001. tnnial deoosit for vour e=ow account
1002. Homeowner's insurance
[email protected]
1003. Mortg<tgo inourence
months <m
t 004. Property t9~••
months @
1005. Flood insurance
[email protected]__
[email protected]_
1006.
1007.
[email protected]
1008.
[email protected]
1009. Aggrogato accounting adjustment
1100. ntfe Chilraes
1101. l1Ue services lnld lender's title lnsutance
1102. Settlement or closing reo
to
1103. OWne(s t~le Insurance
to
1104. Lender's title lnsuranca
-·-to
Page 2
Paldfrom
Borrowets
Fund& at
Settlement
Paid from
Sellers
· Funds at
Settlement
500.00
250.00
10.00
5.00
10.00
474.60
1.2~0.00
--
--
lfrom GFE #91
--
-
....
oar month
oer month
oor month
eet month
oermonth
nermonth
oar month
(frcm GFe #4)
(ftom GFE #5)
--
1105. Lender's title policy Emit
1106. Owner's title ootlcv Rm!t
1107. Agent's portion oltho !olaf tiUo insurarn:e prernium SO.OO
to
1108. Underwriter's portion of the total t~le insurallOO premium SQ.OO
to
k> Exam 'raker, e.q.
1109. Abs!tacl or title search
to
1110.
1111.
to
1112.
to
1113.
to
1200. GO\!ernment Reeerding~.~.!!!J Ch~Js~~·
1201. Government recording charges
t202. Oe.ld S18.50
Mortoaoefsl 552.50
Releases $10.00
t 20S. Trans for taxes
Mortgage(s) $0.00
1204. City/Coun(y tax/stamps Dead $0.00
Deed so.oo
Mortgoge(s) $0.00
1205. Stale tlll<l•tamp•
1206.
1207.
1208.
1300. Add'tion•l Se!Uem•n Ch.!!!9!'•
1301. Required services that you ean ShOll for
1302.
to
1303.
to
1304.
to
1305,
to
1306.
to
1307.
to
1306.
to
1309.
1400. Total Settlement Charaes
(Enter on lines 103, Section J and 502, Section K)
-(frorn GFE rn
71.00
571.00
(from GFE 118)
----~
!romGFE #G
• POC (B) ~ Paid O'Jtsode of dosing by borrower
• POC (S) " Paid outside of dosing by seller
Ooubi~Timo®
26
· HUD-1 SETTLEMENT STATEMENT
ADDENDUM
FILE NUI'I-iBER:
RealEstateExam
NAME OF. BORROWER:
Address of Borrov:er:
Betty Buyer
NAME OF SEl..LER:
Address ~f Seller:
Sam FlipPEr
NAME OF !..ENDER:
Address of Lender:
GulfW.nds &nk
PROPERTY LOCATION:
seTTLEMENT AGENll
Exam Takor, Esq.
Place of Settlomenl:
SETTLEMENT DATI!:
DISBURSEMENT DATE: 5/12111
5112/11
Itemization of Additional HUD Line Items
·...
This addendum is attached to a HUD-1 Settlement Statement executed by the afQrementioned parties and is attached to said
HUD Statement for the purpose of itemizing expenses reflected on line 1309 of page 2 thereof.
Sellets lnldal(•):
Borrowers lnllla!(s):
I
I
I
I
OoubloT1me®
27
.
.
SETTLEMENT CHARGES AND LOAN TERMS
Page 3
Yourerf<dit or charge (points) for thespeciflo fntere61 rate chOsen
·# 60Z
Your adjuste.d origination charges
# 803
$.00 ··-·
_: :J . -
·-··
..
~ -·
:~-00~.
$500.00
LT~r~·~~~·~~~r~•·~x~e•~---------------------------------#~1~2~0~3______ ====:JL-------~sz=~~7~s~:oo~--------------~·l
"I
:
~
! " (\
~Wll
i:
}
$0.00
$.00
-·]
I[
$474.60
$.00
Dally Interest charges f~ro;m'===~===------·#
-9n;.1_~~~~==4~
#903
piomeowne~~; premium.for
$900-:oor-
$1,250.00
Loan Terms
Your Initial loan amount is
$ 165,000.00
30.0000 years
Your loan term I•
Your initial interest rate is
Your lniUal monthly amount owed for p(lntlpal, Interest,
and any mortgage Insurance Is
Includes
~Principal
qj No
Even If you mnke payments on time, can your loan
fit No 0
rise?
li!Jinterest
0
Mortgage Insurance
.00 %. The first chan!)e wm _be
Yes • Kean nse to a maximum of
after
and can change again every
on
. Every change dote, your Interest rate can Increase or dftCfeaso
.00 %. OVer tho lifo of the loon, you Interest rote is guaranteed to never be
by
.00% or hlgherthan
.CO%.
lower than
0
Can your Jnte~est rate rise?
ba~nce
--
5.0%
$
Yes , I~ can rise to a maximum of$ .00
Evan if you make payments on time. can your monthly
amount owed for prlne!pal, lnlerl!St, and mortg•ge
Insurance rise?
0No O Yeo , tlie flrst Increase can be on
owed can rise to$ .00
The maximum ft can ever rise to 1$ S .00
O~s your 10311 have a prepayment penatty?
4lll
0
Doe$ your loan have a balloon payment?
and the monthly amount
No
0
Yes , your maximum prepayment panafty is $ .00
No
0
Yes , you have a banoon payment of$ .00
00/0010000
duo in
years on
Total monthly amount owed lnciOdlng escrow
account payments
0
You do not have a monthly escrow payment for ~ems, such as prope11y
taxes and homeowne( slnsurance. You must pay these Items dlr~tly yourself.
You have an additlonal rnonWy escrow payment ot $ .oo
• This lnc.rude•
thalre<;ui!sln a total initial monthly amount owed of$
prlnclpol, inlores~ ony mortgag<) insuronce and any IIams chocl<ed below:
0
0
0
0
Property to)(os
. [J
Flood in&urance
0
0
HomeQWil&lu insoranc&
Note: If you have any questions about U1e SeUiemont Charges and Loan Tetms listed on this form, p!aase contact your lender.
DoubleTime®
28