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STANDARD PROVISIONS
<br />L EARNEST MONEY: In the event this offer is not
<br />accepted, or in the event chat any of the conditions; hereto are
<br />not satisfied, or in the event of a breach of this contract by
<br />Seller, then the earnest money shall be returned to Buyer, but
<br />such return shall not affect any other remedies available to
<br />Buyer for such breach. In the event this offer is accepted and
<br />Buyer breaches this contract, then the earnest money shall be
<br />forfeited. but such forfeiture shall not affect any other remedies
<br />available to Seller for such breach. NOTE: In the event of a
<br />dispute between Seller and Buyer over the return or forfeiture of
<br />earnest money held in escrow by a broker, the broker is required
<br />by state law to retain said earnest money in his trust or escrow
<br />account until he has obtained a written release from the parties
<br />consenting to its disposition or until disbursement is ordered by
<br />a court of competent jurisdiction.
<br />2. LOAN ASSUMED: In the event a loan is assumed as part
<br />of the payment of the purchase price. then all payments due
<br />from Seller thereon must be current at closing, and the principal
<br />balance assumed shall be computed as of the date of closing.
<br />The amounts shown for the assumption balance and cash at
<br />closing shall be adjusted as appropriate at closing to reflect the
<br />final computations. Unless Buyer has otherwise specifically
<br />agreed in writing. the existing loan must be assumable without
<br />either acceleration of the amount secured or any change in the
<br />original terms of the note and deed of trust. Buyer shall be
<br />responsible for all loan assumption costs - Seller shall have no
<br />obligation to pay any loan assumption costs unless specifically
<br />sec forth in this contract. The escrow account, if any, shall be
<br />purchased by Buyer.
<br />S. PROMISSORY NOTE AND DEED OF "CRUST: In the
<br />event a promissory note secured by a deed of trust is given by
<br />Buyer to Seller as part of the payment of the purchase price, the
<br />promissory note and deed of trust shall be in the form of and
<br />contain the provisions of the currently approved N. C. Bar
<br />.Association Forests 4 and 5, as modified in paragraph S(c) on the
<br />reverse side hereof -
<br />4. PROBATIONS AND ADJUSTMENTS: Unless otherwise
<br />provided, the following items shall be prorated and either
<br />adjusted between the parties or paid at closing -
<br />(a) Ad valorem taxes on real property shall be prorated on a
<br />calendar year basis to Elie date of closing:
<br />(b) Ad valorem taxes on personal property for Elie entire year
<br />shall be paid by Seller:
<br />(c) All late listing penalties, if any, shall be paid by Seller:
<br />(d) Rents, if any, for the Property shall be prorated to the
<br />dace of closing:
<br />(e) Accrued. but unpaid interest and other charges to Seller. if
<br />any, shall be computed to Elie date of closing and paid by Seller.
<br />Interest and other charges prepaid by Seller shall be credited to
<br />Seller at closing and paid by Buyer. (Other charges may include
<br />FHA mortgage insurance premiums, private mortgage insurance
<br />premiums and homeowners association dues -)
<br />5. FIRE AND OTHER CASUALTY: The risk of loss or
<br />damage by Fire or other casualty prior to closing shall be upon
<br />Seller,
<br />6. CONDITIONS:
<br />(a) The Property must be in substantially the same condition at
<br />closing as on the date of this offer. reasonable wear and tear
<br />txcepted-
<br />(b) All deeds of trust, liens and other charges against Elie
<br />Property, not assumed by Buyer, must be paid and cancelled by
<br />Seller prior to or at closing.
<br />(c) Title must be delivered at closing by general warranty deed
<br />and most be fee simple marketable title, free of all encumbrances
<br />except ad valorem taxes for the current year (prorated to the date
<br />of closing), utility easements and anviolated restrictive
<br />covenants that do not materially affect the value of the property
<br />and such other encumbrances as may be assumed or specifically
<br />approved by Buyer. The Property must have legal access to a
<br />public right of way.
<br />7, NEW LOAN: Buyer shall be responsible for all costs
<br />with respect to anv new loan obtained by Buver. Seller shall
<br />have no obligation to pay any discount fee or other charge in
<br />connection therewith unless specifically set forth in this
<br />contract.
<br />8. INSPECTIONS: Unless otherwise stated herein; (i) the
<br />electrical, plumbing, heating and cooling systems and built -in
<br />appliances, if any, shall be in good working order ac closing:
<br />(ii) the roof, gutters. structural components, foundation,
<br />fireplace(s) and chimneys) shall be performing the function for
<br />which intended and shall not be in need of immediate repair:
<br />(iii) there shall be no unusual drainage conditions or evidence of
<br />excessive moisture adversely affecting the structure(s); and (iv)
<br />the well /water and septic /sewer systems. if any, shall be
<br />adequate, not in need of immediate repair and performing the
<br />function for which intended. Buyer shall have the option to
<br />have Elie above listed systems, items and conditions inspected
<br />by a reputable Inspector or contractor, at Buyer's expense
<br />3
<br />(unless otherwise provided in this contract), but such
<br />inspections muse be completed in sufficient time before closing
<br />to permit any repairs to be completed by closing. If any repairs
<br />are necessary, Seller shall have the option of (a) completing
<br />them. (b) providing for their completion, or (c) refusing to
<br />complete them. If Seller elects not to complete or provide for
<br />the completion of the repairs. then Buyer shall have the option
<br />of (d) accepting the Property in its present condition, or (e)
<br />terminating this contract, in which case Elie earnest money shall
<br />be refunded. Closing shall constitute acceptance of each of the
<br />systems, items and conditions listed in (i), (ii), (iii) and hv)
<br />above in its then existing condition unless provision is
<br />otherwise made in writing,
<br />IF BUYER OBTAINS A VETERANS ADMINISTRATION (VA)
<br />LOAN, SELLER SHALL PAY THE COST OF ANY WELL, WATER
<br />AND SEPTIC /SEWER SYSTEM INSPECTION,
<br />RECOMMENDATION: Buyer should have any inspections made
<br />prior to incurring expenses for closing.
<br />9. WOOD - DESTROYING INSECTS: Unless otherwise
<br />stated herein Buyer shall have the option of obtaining, at
<br />Buyer's expense, a report from a licensed pest control operator
<br />on a standard form in accordance with the regulations of the
<br />North Carolina Structural Pest Control Committee. stating chat
<br />there was no visible evidence of wood- destroving insects and
<br />containing no indication of visible damage therefrom. The
<br />report must be obtained in sufficient time before closing so as
<br />to permit treatment, if any, and repairs, if any, to be completed
<br />prior to closing. All treatment required shall be paid for by
<br />Seller and completed prior to closing, unless otherwise agreed
<br />upon in writing by the parties. If any simetural repairs arr
<br />necessary, Seller shall have the option of (a) completing them.
<br />(b) providing for their completion, or (c) refusing to complete
<br />them. If Seller elects not co complete or provide for the
<br />completion of structural repairs, then Buyer shall have the
<br />option of (d) accepting the Property in its present condition. or
<br />(e) terminating this contract, in which case the earnest money
<br />shall be refunded. The Bu er is advised that the i------ ion and
<br />report described in this Paragraph may nor always reveal either
<br />structural damage or dama caused b a tits or or ant ems other
<br />than wood - destroying insects. If new construction. Seller shall
<br />provide a new construction termite guarantee.
<br />IF BUYER OBTAINS A VETERANS ADMINISTRATION IVA)
<br />LOAN, SELLER SHALL PAY THE COST OF THE WOOD -
<br />DESTROYING INSECT REPORT.
<br />10. LABOR AND MATERIAL: Seller shall furnish at
<br />closing an affidavit and indemnification agreement in form
<br />satisfactory to Buyer showing iliac all labor and materials, if
<br />any, furnished to the Property within 120 days prior to the dare
<br />of closing have been paid for and agreeing to indemnify Buyer
<br />against all loss from any cause or claim arising therefrom.
<br />11. FUEL: Buyer agrees to purchase from Seller the fuel, if
<br />any, situated in a tank on the Property at the prevailing rate,
<br />with the cost of measurement thereof, if any, being paid by
<br />Seller.
<br />12. CLOSING EXPENSES: Seller shall pay for the
<br />preparation of a deed and for the excise tax (revenue stamps)
<br />required by law. Buyer shall pay for recording the deed and for
<br />preparation and recording of all instruments required to secure
<br />the balance of the purchase price unpaid at closing.
<br />13. EVIDENCE OF TrILE: Seller agrees to use his best
<br />efforts to deliver to Buyer as soon as reasonably possible after
<br />the acceptance of this offer, copies of all title information in
<br />possession of or available to Seller, including but not limited
<br />to: title insurance policies. attorney's opinions on title,
<br />surveys, covenants, deeds, notes and deeds of trust and
<br />easements relating to the Property.
<br />14. ASSIGNMENTS: This contract may not be assigned
<br />without the written agreement of all parties, bur if assigned by
<br />agreement, then this contract shall be binding on the assignee
<br />and his heirs and successor.
<br />15. PARTIES: This contract shall be binding upon and shall
<br />inure to the benefit of the parties and their heirs, successors and
<br />assigns. As used herein, words in the singular include the plural
<br />and the masculine includes the feminine and neuter genders. as
<br />appropriate.
<br />16. SURVIVAL: if any provision herein contained which by
<br />its nature and effect is required to be observed, kept or performed
<br />after the closing, it shall survive the closing and remain
<br />binding upon and for the benefit of the parties hereto until fully
<br />observed, kept or performed.
<br />17. ENTIRE AGREEMENT: Buyer acknowledges that he has
<br />inspected the Property. This contract contains the entire
<br />agreement of the parties and there are no representations,
<br />inducements or other provisions ocher than chose expressed in
<br />writing. All changes, additions or deletions hereto must be in
<br />writing and signed by all parties. Nothing contained herein
<br />shall alter any agreement between a REALTOR"' or broker and
<br />Seller as contained in any listing contract or ocher agreement
<br />between them.
<br />N,C- Bar Form No. 2, C 1987 IWCO
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