Study Guide Only, please!!!!

Please help me fill out this real estate contract so I can use as a study guide Only.

To:Trustworthy Paralegals

From:______________________, Supervising Attorney

Re:Charlie and Sam Wiggins Home Purchase

I met with Charlie and Sam Wiggins (hereinafter "buyers") yesterday. The buyersare interested in purchasing a home from Kai and Mel Dornbauch (hereinafter "sellers).The Wiggins have made a wise decision to have us draft a contract for them instead of using the form contract provided by the Area Board of Realtors.

This is a group assignment.While you may divide the work, all team membersmustreview all documents. Therefore, it is important that you set deadlines in your group so each team member is given time to properly review the material.All documents should be contained in one word file and submitted to me by one team member by the due date.

As always, it is possible for you to find form contracts online;however, I urge each group to try to work on their own.Use your knowledge and materials from this class as well as your critical thinking skills. It is the best way to make sure you meet all of the necessary requirements while cutting down on legalese.

I have provided you a form contract I found in our files. This contract was used for another client so not all of the provisions apply here and you will also want to make sure the contract is up to date with current law. Points will be deducted if you include provisions that are not relevant or up to date for our purposes.

Please draft the following documents for me in your group:

(1)Prepare a real estate sales contract based upon the following facts. This is afinal contractbased on already-agreed terms, not an offer & acceptance document which depends on future negotiations.

(2)Also, prepare a memo to your supervising attorney explaining what you have done, why, and what else needs to be done. If facts you believe to be essential are missing, please indicate those in the memo. Keep this memo between 1-2 pages.

Below are my notes about the essential facts and instructions.Please review carefully!

1. The parties have agreed to all of the following terms. The buyers will purchase the home currently owned and occupied by the sellers for a purchase price of $300,000.
2. The address of the property is 418 Prince Highway, Cincinnati, Ohio. Its legal description is Lot #34 of the Royal Plat of Cincinnati, County of Hamilton, State of Ohio. The property is zoned residential. The buyers currently reside at 1100 Chambers Lane, Columbus, OH 43035.
3. The sellers will part with the entire property except their personal possessions, a weather vane on the roof, and the chandelier that hangs in the dining room.
4. At the buyers' insistence, termite, roof, and radon inspections will be conducted at the cost of the sellers, and satisfactory certificates of such inspections be delivered to the buyers not later than ten days before closing. The buyers are not having a full house inspection done.
5. Buyers will pay the purchase price and earnest money as follows: (1)$5,000 cash upon signing the Contract which will be held be seller's attorney, Dove Henderson, Esq. The contract should state that a receipt has been given to the buyers in return for this deposit and that they will receive this money back if the sale does not go through/ If the sale does go through, this earnest money will be applied to the purchase price at closing, and (2)Balance in cash or a certified bank check at the time of closing.
6. The parties agree that closing will be held within sixty days of the date of the signing of the Contract, or as soon as possible.
7. Real estate taxes, assessments, utilities, and sewer charges will be pro-rated and paid by the parties accordingly.
8. Buyers will seek a mortgage in the amount of $285,000 over a 30-year period at a fixed, conventional mortgage rate not to exceed five percent. If Buyer cannot secure a loan commitment on such terms within thirty days of the signing of this contract, the contract will be deemed canceled and of no effect and the earnest money shall be returned to the Buyer within thirty days.
9. The buyers must apply for financing within two days from the signing of the Contract. They will request a written commitment letter from the bank within thirty days of their application.
10. All closing costs as well as costs associated with working with Ajax Realty Company will be paid by the sellers, except that the buyers will pay for title insurance.
11. The parties agree occupancy will be given to Buyers within 15 days after the closing date. The parties will all appear at our law office on(insert date that works with timeline)to sign the contract.
12. There were no real estate agents involved in this sale.
13. Buyer looked at inspected the property on(insert date that works with timeline).
14. The contract should state a provision that the contract fully complies with Fair Housing Laws.

Real Estate Purchase Agreement This agreement is made this _____ day of __________, 20_____, between _________ and _________ (hereinafter called "Buyer"), and _____________ (hereinafter called "Seller"): 1. Seller agrees to sell and Buyer agrees to buy the following described property: [insert address and if available, legal description] 2. The consideration shall include any fixtures, including but not limited to: 3. The purchase price shall be _________________ Dollars ($__________) payable as follows: 4. This Agreement is contingent upon Buyer obtaining a first mortgage loan of at least ________________ Dollars ($_______) for _________. 5. At the Closing, upon receipt of the balance of the purchase price required to be paid by Buyer as detailed in Paragraph 3 above, Seller shall deliver to Buyer a general warranty deed, in fee simple absolute, free of any dower interest. Title so conveyed shall be free, clear, unencumbered and marketable, in fact and of record, at the delivery of deed, except for taxes as herein provided. There shall be no encroachments and all easements and restrictions shall be acceptable to Buyer. 6. Any existing encumbrances upon the property which Seller is required to remove under this Agreement may be paid and discharged with the purchase money at the time of the Closing. 7. The seller should do a chimney inspection and deliver the results to the buyer

8. This offer is further subject to the satisfaction of the following contingencies, all of which shall be satisfied on or before thirty (30) days after the acceptance of this Agreement by Seller and all at the expense of Buyer: a) Full house inspection to include structural, mechanical, roof, pool, electrical, foundation and all other and additional items selected by Buyer, and further including, if desired by Purchaser, an assessment or inspection to determine the presence of lead- based paint and/or lead-based paint hazards, all of which inspections shall be reasonably satisfactory to Buyer. Notice of any defects shall be given to Seller and if Buyer elects not to close the transaction because of such defect, Seller may elect to repair/replace such problem at Seller's cost, in which event Buyer may not terminate this Agreement because of such problem. Notice of any such problems must be received by Seller on or before thirty (30) days after execution of this Agreement or such contingency shall be deemed waived. b) Buyer acknowledges that Seller has disclosed the following defects: ______________________________________________ . Buyer accepts these defects. 9. Seller, at Seller's expense, shall provide the following home maintenance or repair guarantee plan: _________. [Not applicable if plan name not inserted.] 10. Buyer has examined all property involved and, in making this offer, is relying solely upon such examination with reference to the condition, character and size of land and improvements and fixtures, if any. This contract constitutes the entire agreement and there are no representations, oral or written, which have not been incorporated herein. Time is of the essence of all provisions of this contract. All provisions of this contract shall survive the closing. 11. On the Closing date, the premises shall be in as good condition and repair as they were on ___________ [date]. There shall be no notices or orders of any city, county, state or municipal governments or departments thereof, against said property at the

date of Closing. Seller further warrants that the property is zoned residential and that on the Closing date, the mechanical systems of the premises, including water heaters, furnaces, plumbing systems and fixtures, and electrical fixtures shall be in good condition and operable. Pursuant to Ohio Revised Code ________, Seller has delivered to Buyer a required Residential Property Disclosure Form. Pursuant to Federal Law _________, Seller has delivered to Buyer a required Disclosure on Lead-Based Paint and the pamphlet "Protect Your Family From Lead In Your Home." A copy of both such disclosure forms are attached hereto. 12. Seller agrees that it will maintain, until the date of delivery of the deed, fire and extended coverage insurance on the property in an amount not less than the fair market value of the insurable portion of the property. In the event the property is damaged or destroyed by fire or other casualty prior to delivery of the deed, the Buyer shall have the option of (a) accepting the property in its damaged condition, in which event Seller shall assign in full the proceeds of insurance as a result of said damage or destruction, or (b) terminating the contract formed by the acceptance of this Agreement, in which event the Earnest Money shall be immediately returned to Buyer and all obligations of Buyer and Seller shall terminate. The risk of loss or damage to the premises by any insurable casualty shall be assumed by Seller until delivery of the deed. 13. Real estate taxes, assessments, gas, electric, water, and sewerage charges shall be pro-rated as of the date of Closing; Seller to pay all the above said costs and charges attributable to its ownership period and Buyer to pay said costs and charges thereafter. Seller shall obtain final meter readings for all utilities and pay the bills for such periods of its ownership. If the premises is heated by oil, Seller agrees to leave at least a one-half (1/2) tank of fuel oil. Taxes shall be prorated in accordance with standard Montgomery County, Ohio, short- form tax proration. Real estate taxes and assessments pro-ration shall be based upon the most current tax bills available and shall not be re-computed subsequent to Closing notwithstanding an increase or decrease in such taxes or assessments.

14. The Closing of title for said property shall take place on or before ______- [date], at a time and place mutually agreeable to both parties. Occupancy shall be given on _________ [date], with Seller delivering to Buyer the keys for all exterior doors of said premises. Based upon the foregoing, there shall be a period of time subsequent to Closing that Seller shall live in the premises rent free. During this rent-free period, Seller shall be responsible for the payment of all utilities and fuel at the premises and any repairs to the property (including but not limited to electrical, plumbing and HVAC). The representations on the required condition of the premises shall continue until the date of possession, and thereafter. 15. Immediately prior to Closing, Buyer may request a final walk-through inspection of the premises to assure that there has been compliance with this Agreement. Once a Closing date has been established, Buyer or its representatives may, upon reasonable notice to Seller, gain access to the premises for the purpose of making measurements and other items at Buyer's discretion. 16. Seller represents that a commission in the amount of _______ percent (__%) of the total purchase price is payable by reason of this sale to ________ [insert name of realty brokerage company]. Such commission shall be paid by Seller at Closing. 17. The provisions of this Agreement shall survive the deed. 18. This offer and the acceptance thereof shall constitute the entire agreement of the parties, and no oral, verbal, or implied agreements or understandings shall vary the terms of this contract. This offer, when accepted, shall be binding upon the parties, their heirs, administrators, executors and assigns. 19. This offer shall remain open for acceptance until the ____ day of ________, 20__, midnight, and a signed copy shall be promptly returned to Buyer upon acceptance.

SIGNATURE OF BUYER Buyer acknowledges receipt of a copy of this contract. The Buyer directs that the deed be made as follows: _______________________________________________ [name(s) of grantee(s) and if applicable, form of ownership. Example: John Doe and Jane Doe, Jointly With Rights of Survivorship.] Witnesses: BUYER: ______________________________ ______________________________ [type name] [type name] ______________________________ ______________________________ [type name] [type name] RECEIPT OF BROKER I hereby acknowledge receipt of ___________ Dollars ($________) in connection with the foregoing contract and in accordance with the terms therein provided. [type name of realty brokerage company] By: ______________________________ [type name of real estate agent] ACCEPTANCE Seller hereby accepts the foregoing contract on this __________ day of _________, 20___. Seller acknowledges receipt of a copy of this contract. SELLER: ___________________________________ [type name] ___________________________________ [type name