CONTRACT FOR SALE OF REAL PROPERTY
This Contract for Sale of Real Property (hereinafter referred to as the “Contract”, is by and between ELLAMAR PROPERTIES, INC., an Alaska corporation, (hereinafter referred to as the “Seller”) and John Smith and Jane Smith, husband and wife, tenants by the entirety with rights of survivorship, (hereinafter referred to as the “Buyer”).
1. Sale. Seller agrees to sell and Buyer agrees to buy that certain parcel of Real property and any improvements thereon, situated in the Valdez Recording District, State of Alaska (hereinafter referred to as the “Property”), and more fully described as follows:
Lot 00 (Zero), Block 00 (Zero) of the ELLAMAR SUBDIVISION according to the official plat thereof filed under Plat No. 82-13, all in the Valdez Recording District, Third Judicial District, State of Alaska.
2. Terms. Seller agrees to sell and Buyer agrees to buy the Property for a total purchase price of $20,000.00 (One dollars and no/one hundredths), payable as follows:
(a) At the time of execution of this Agreement, $1,000.00, receipt of which is hereby acknowledged.
(b) At the time of closing the balance of the $00,000 xx% down payment in the amount of $00,000.00 (Zero dollars, and no/one hundredths), PLUS closing costs of an estimated $2,000.00, thus full total due is $02,000.00) Buyer to receive the amount of the $2,000.00 back that is not needed for closing costs. (The closing costs will include the Buyers Title Insurance, the Title Company fee, legal paper preparation, escrow opening fee, plus first year escrow costs and all filing fees.
(c) The deferred balance of $ 00,000.00 (Zero hundred and no/one hundredths) shall be payable in monthly installments of $000.00) including interest at the rate of nine percent per annum from January 31, 201x , until the entire sum of principal and interest has been paid in full on or before the 31st day of January, 201x. The Buyer shall have the right to pre-pay the balance of the loan without penalty.
3. Deed of Trust. To secure the deferred balance of principal and interest, Buyer shall execute a Deed of Trust and a Deed of Trust Note on the property.
4. Possession. Possession shall be given to Buyer on closing.
5. Closing. Closing shall be within thirty (30) days of the Date of this Contract. If title proves good and purchase is not completed within said period, the Earnest Money shall be forfeited by Buyer. Time is of the essence of this Contract, but the parties may mutually extend the time for performance of any act by a written instrument executed by all parties hereto.
6. Deed. At closing, Seller shall deliver to Buyer a Warranty Deed which will be in the form of the blank one attached to this Contract.
7. Risk of Loss. In the event the real property or improvements, if any, thereon shall be destroyed or materially damaged prior to the consummation of this purchase, the Contract shall at Buyer’s election immediately become null and void and said Earnest Money shall be returned to Buyer on demand.
8. Expenses. Seller will provide title insurance from First American Title Company of Alaska or any other title company acceptable to Seller. Title Insurance Company will deliver the Title Insurance to the Buyer after the closing and the original Warranty Deed will be delivered to the Buyer after closing. Buyer will pay at closing to Seller a closing fee that will include the cost of the title insurance, the set-up charges for bank escrow, the first year bank escrow fee and all recording costs on the following schedule:
Purchase price up to $50,000.00 to $100,000.00 - Buyer closing costs to be $2000.00.
If the Buyer wishes to have the closing completed by a title insurance company other than First American Title Company of Alaska , then Buyer shall pay all fees including title insurance, escrow charges, attorney’s fees and recording fees associated with the closing. The parties hereby nominate First National Bank of Alaska as the bank or collection agent to collect the payments from the Buyer and hold the reconveyance documents on the Deed of Trust. The Buyer shall pay all other bank collection fees after the initial opening of the escrow account.
9. Successors. This Contract shall extend to and be binding upon the heirs, administrators, executors, successors and assigns of the respective parties hereto.
10. Exchanges of Lots. At any time within twelve (12) months after the closing, Buyer may notify Seller in writing that he/she desires to exchange the lot purchased (“the purchased lot”) for another lot (“the exchanged lot”) in Ellamar Subdivision, which is still owned by Seller, and is of an equal or greater sales price than the purchased lot and is not subject to any contract or option to sell. The notice shall designate the exchange lot. Within five (5) business days after receipt by Seller of written notice from Buyer, Buyer shall execute a Contract for Sale of Real Property on the exchanged lot in the same form as this Contract. Buyer shall receive as credit against the purchase price of and closing costs on the exchanged lot for the amounts he/she has already paid on the purchase price of the purchased lot, excluding any interest paid. In addition to the total purchase price of and closing costs on the exchanged lot, Buyer agrees to pay at the closing for the exchanged lot all costs for drafting all documents necessary to convey the purchased lot to Seller and all costs of a Title Insurance policy insuring good and marketable title of the purchased lot to the Seller. In the event Buyer cannot obtain such a title insurance policy, Seller shall not be obligated to exchange lots. At the closing on the exchanged lot, Buyer shall execute a Warranty Deed conveying the purchased lot to Seller subject only to the same encumbrances as were contained in the Seller’s Warranty Deed conveying the purchased lot to the Buyer.
11. Entire Agreement. This contract contains the entire agreement between the parties and cannot be changed, except by a written instrument executed by the parties hereto.
12. BUYER’S ADDITIONAL RIGHTS. YOU HAVE THE OPTION TO CANCEL YOUR CONTRACT OR AGREEMENT OF SALE BY NOTICE TO THE SELLER UNTIL MIDNIGHT OF THE SEVENTH DAY FOLLOWING THE SIGNING OF THIS CONTRACT.
IF YOU DID NOT RECEIVE A PROPERTY REPORT PREPARED PURSUANT TO THE RULES AND REGULATIONS OF THE OFFICE OF INTERSTATE LAND SALES REGISTRATION, U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, IN ADVANCE OF YOUR SIGNING THE CONTRACT OR AGREEMENT, THE CONTRACT OR AGREEMENT OF SALE MAY BE CANCELLED AT YOUR OPTION FOR TWO YEARS FROM THE DATE OF SIGNING.
DATED this ____________________________.
SELLER: ELLAMAR PROPERTIES, INC.
P.O. Box 203113,
Anchorage, AK 99520
CLIFFORD J. GROH, II
P.O. Box ------,
Valdez, AK 99555