Sample Contract Clauses (Consult with your attorney):

Be sure your attorney reviews any contract before you sign it--or at least add a clause that the contract is subject to review and approval by your attorney:

ATTORNEY REVIEW: This Contract is subject to review and approval by SELLER’s attorney to be completed within 3 days of the effective date.

General Advice on Contracts from Moeller Realty:

Sample Clauses in Real Estate Contracts:

CONVENTIONAL FINANCING

2. (a) Lender to supply Statement within 5 days of Effective Date stating: (i) that BUYER has made full application; (ii) that his reported net income falls within the qualifying ratios and other standards for the intended loan; (iii) that his credit is satisfactory for this loan; (iv) that his reported current cash savings are sufficient for the intended downpayment at a purchase price of $__________, for the closing costs, and for all other Lender requirements (this required cash savings amount to be specified in the Statement); and (v) that he has locked in the interest rate that this qualifying statement is based on for at least 45 days.  Should the Lender not be able to furnish this Statement within this time period, then the SELLER has the option to cancel this Agreement and the BUYER will be entitled to a refund of the binder deposit.

2. (b) After receipt of  Lender’s Statement per Paragraph 2.(a) above, then the BUYER’S failure to obtain financing or perform according to other terms of this Contract, either because of lack of sufficient cash funds as required by the Lender [and as specified by the Lender in the Lender’s Statement per Paragraph 2.(a)(iv) above] (including funds required for the downpayment and closing costs) or because any real estate currently owned by BUYER has not been transferred, will constitute a default by the BUYER under this Contract and will result in the forfeiture of all earnest monies (a total of $_________) paid on account.

OCCUPANCY AGREEMENT

Whereas, the undersigned SELLER and BUYER, have entered into a written Contract for Sale and Purchase, dated _________________ , pertaining to the property identified as follows:

_________________________________________________________________________

(Copy of above referenced contract to be attached hereto and incorporated herein by reference)

and,

Whereas, the undersigned parties mutually intend that the SELLER shall have possession of the subject premises after closing of the purchase and sale in accordance with the contract, it is agreed as follows:

1.      Upon full execution of this agreement, the BUYER hereby grants SELLER the right to occupy the premises from date of closing until Twelve o'clock, midnight, fourteen (14) days after the date of closing, or such other date and time as the parties may agree upon in writing.

2.      SELLER agrees to pay all utilities and services on a prorated basis during the period of occupancy.

3.      BUYER agrees to maintain heating, air conditioning, plumbing and electrical systems and any built-in appliances and equipment in a normal working order.

4.      SELLER agrees to refrain from undertaking any alterations.

5.      SELLER agrees to abide by all laws and government regulations with respect to the use or occupancy of the premises.

6.      SELLER agrees to admit BUYER or BUYER's authorized agent at reasonable times for the purpose of inspecting the premises.

7.      SELLER will escrow at time of closing $___________ as a security deposit to be held by a mutually agreed upon Escrow Agent. BUYER has the option of conducting a post occupancy inspection of the Property within 5 days of written notice SELLER has vacated and Deliver to SELLER and Escrow Agent a list of deficiencies within 3 days thereafter. If the Escrow Agent does not receive this notice, the Escrow Agent may release funds to the SELLER and be held harmless by the parties. If notice is delivered, the SELLER will receive the remaining security deposit after correcting any deficiencies.

This Agreement is not intended to create a relationship of landlord and tenant and the right of SELLER to occupy the premises shall be on a day to day basis, subject to the terms hereof. As soon as such right shall terminate, SELLER agrees to vacate the premises. Each party agrees to pay all costs of any legal action that may be instituted by the other to enforce the terms hereof or for the eviction of the SELLER from the property, including a reasonable attorney's fee.

AS IS WITH RIGHT TO INSPECT: This clause replaces Paragraph 13 (INSPECTION, REPAIR AND MAINTENANCE) of the Contract. This Contract is contingent on SELLER completing, signing, and delivering to BUYER or BUYER’S Agent a written real property disclosure within 3 days from Effective Date disclosing any facts that materially affect the value or desirability of the Property which are not readily observable. Except for this requirement to disclose known latent defects, SELLER makes no warranties of any type, either express or implied, as to the physical condition of the Property (including but not limited to, the roof and other structural components and improvements, and the items of personal property). SELLER has received no notice from any governmental agency as to a currently uncorrected building or safety code violation. BUYER expressly waives any claims against SELLER or SELLER’S agent, including the broker, for any unknown defects or other damage which may exist or be discovered by BUYER. BUYER shall have 10 days (“Inspection Period”) from the Effective Date in which to make any and all inspections of the Property as BUYER shall desire, including but not limited to emergency studies, soils tests, termite and structural inspections and environmental and radon tests. BUYER may cancel this Contract by written notice to SELLER within 5 days from the end of the Inspection Period if the estimated cost of repairs determined to be necessary by BUYER is greater than $500.00. For the cancellation to be effective, BUYER must include in the written notice a copy of the inspector’s written report, if any, and repair estimates from person(s) holding an appropriate Florida license to repair the items inspected. Any conditions not reported in a timely manner will be deemed acceptable to BUYER. In the event of an effective cancellation, the deposit(s) paid shall be immediately returned to BUYER; thereupon, BUYER and SELLER shall be released of all further obligations under the Contract. SELLER will provide access and utilities for BUYER’S inspections. BUYER shall be responsible for repair or restoration of the Property required as a result of any inspections. If BUYER fails to timely conduct any inspection which BUYER is entitled to make under this clause, BUYER waives the right to the inspection and accepts the Property “as is.” SELLER shall maintain the Property, including, but not limited to, the lawn, shrubbery and pool, if any, in the condition existing as of the Effective Date, ordinary wear and tear excepted. BUYER shall be permitted access to the Property prior to the closing for a walk-through to ensure that all items of Personal Property are on the Property; all required repairs and replacements, if any, have been made; and the Property, including, but not limited to, the lawn, shrubbery, and pool, if any, has been maintained in the condition existing as of either the Effective Date, date of inspection, or date of repair, whichever may be applicable.

NO CONTINGENCY FOR SALE OF REAL ESTATE OR SOURCE OF DOWNPAYMENT: In the event the BUYER already owns real estate, the BUYER acknowledges that this Contract is in no way contingent on the sale, rental, or closing of that real estate. Failure to obtain financing or perform according to other terms of this Contract because the BUYER’s real estate is not transferred or because of lack of sufficient cash funds as required by the lender for the downpayment and closing costs will constitute a default by the BUYER under this Contract and will result in the forfeiture of all earnest monies (a total of $____________) paid on account.

Agreement to Modify Deposit Receipt and Purchase and Sale Agreement

The Deposit Receipt and Purchase and Sale Agreement dated ____________ between _________________________ , BUYER and _______________________ , SELLER, covering the real property commonly known as __________________________ , is hereby amended and modified as FOLLOWS:

1.     The BUYER acknowledges that he has had amble time and opportunity to complete all studies, tests, and inspections that would be relevant to this Property and to this purchase to his satisfaction and agrees to accept this Property in its present as-is condition with all faults and with the assumption of risk for any latent defects, reasonable wear and tear excepted (also with the exception of any defects revealed by a survey per Paragraph “C” in the Standards Section of the Contract and with the exception of any defects noted in the wood-destroying organism report per Paragraph 8 of the Contract).

2.     In exchange for the BUYER's agreement to accept this Property in its present as-is condition with all faults (in particular with all defects and conditions described in BUYER's "Property Inspection Report" dated _____________) and with the assumption of risk for any latent defects, SELLER will credit BUYER, at closing, with $________.

3.     In all other respects said Agreement shall be unmodified and in full force.

This Agreement–Modification, upon its execution by both parties, is hereby made an integral part of the aforementioned Agreement.