BENJAMIN RYAN COMMUNITIES, LLC FURTHER TERMS AND CONDITIONS ADDENDUM A. Addendum to New Home Purchase and Sale Agreement

Transcription

1 Page 1 of 5 BENJAMIN RYAN COMMUNITIES, LLC FURTHER TERMS AND CONDITIONS ADDENDUM A Addendum to New Home Purchase and Sale Agreement THIS ADDENDUM IS ATTACHED TO AND MADE A PART OF the certain Real Estate Purchase and Sale Agreement first dated wherein herein, Buyer(s) agreed to purchase and Benjamin Ryan Communities, LLC herein Seller, agrees to sell the real property described as; lot number in the development known as. Upon which Seller has, or will construct a new home. This addendum contains additional terms and conditions of sale. In the event of a conflict between the terms of sale set forth in the form of agreements or addendums, the provision contained in this addendum shall govern. NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS: *****FOR THE SAFETY OF BUYER(S) AND ALL CONCERNED, BUYER(S) ARE NOT AUTHORIZED TO WALK THROUGH THE HOME WITHOUT SELLER S AGENT PRESENT. A BUYER SHALL RESIST THE URGE TO ENTER AND/OR INTERFERE WITH ONGOING CONSTRUCTION. OUR SUB-CONTRACTORS MAY BE FINED FOR YOUR UNAUTHORIZED PRESENCE. PLEASE SCHEDULE AN APPOINTMENT WITH SELLER S AGENT IF ENTRY IS NEEDED PRIOR TO CLOSING****** INITIAL SELECTION OF OPTIONS AND COLORS: Buyer(s) understands that ALL options/upgrades shall be selected within three (3) days of mutual agreement and shall be paid for at the time of order. Payments shall be made directly to Seller and are NON-REFUNDABLE. ALL OPTION/UPGRADE DEPOSITS WILL BE FORFEITED IF TRANSACTION DOES NOT CLOSE. Buyer(s) understands that ALL options/upgrades are dependent on the stage of construction and that all options/upgrades may not be available. Buyer(s) agrees that within three (3) days of mutual agreement, Buyer(s) shall deliver to Seller in writing Buyer(s) s selection for options/upgrades, exterior paint colors and surface coverings. Depending on the stage of construction, some or all of the selections, including interiors colors and surface coverings may have already been ordered by Seller, and therefore cannot be changed. If the Seller receives no selections within three (3) days of mutual agreement, Seller reserves the right to make the selections for the house. COMPLETION DATE AND CLOSING DATE: Completion date shall be defined as when the home is complete and the governing jurisdiction has issued a Certificate of Occupancy or written evidence that all final inspections have been signed off. Buyer(s) acknowledges that any completion date communicated to Buyer(s) by Seller or real estate agent is an estimate only, and shall be considered a projected date at best. Should the home completion not make the projected completion date, Seller shall have an automatic ninety (90) days extension of the closing date provided on the Purchase and Sale Agreement. The closing date provided on the Purchase and Sale Agreement is an estimated closing date and is solely designed for the termination of this agreement. A closed transaction shall be defined when the governing county issues recording numbers and the Buyer(s) s Lender issues a successful funds transfer to the closing agent. Buyer(s) agrees that early occupancy will not be issued under any circumstances. Seller shall not be responsible for penalties or fees accrued or associated with missed deliveries, rescheduled moving vans or movers and/or anything else associated with Buyer(s) s relocation.

2 Page 2 of 5 THE CLOSING PROCESS will take place with FIRST AMERICAN TITLE COMPANY (Title) and be closed by FIRST AMERICAN (Escrow). A standard Title insurance policy shall be ordered through First American Title. Contact: Denise Shafer, dschafer@firstam.com, Phone: (360) Fax: (866) The builder shall pay an escrow fee of $150 plus tax and the Buyer(s) shall pay the standard one half escrow fee based on the sale price of the home. CLOSING COSTS Seller may contribute Buyer s closing costs per contract, although in cases where the Buyer elects a VA guaranteed loan, the maximum seller contribution applied to closing costs shall be inclusive of buyers ½ of the escrow closing fee. The following concessions: will only be paid for by the Seller if the Buyers use one of the Preferred Lenders, 1 st Security Bank, Guild Mortgage or LoanStar Home Lending. IF SELLER HAS COMPLETED THE HOME BY CLOSING DATE and Buyer(s) is not prepared to close than the closing date may be extended, at Seller s sole option with provisions. Buyer(s) agrees to close immediately upon notice that a Certificate of Occupancy has been issued or evidence that all final inspections have been signed off. Seller shall make every reasonable effort to complete home prior to closing date; Buyer(s) s sole remedy is termination of the agreement. If Seller fails to complete home prior to the projected closing date Seller shall not be responsible for the expiration of Buyer(s) s loan commitment or for any loan fees forfeited by Buyer(s). Buyer(s) agrees to proceed to closing even if Seller has not completed the cosmetic and finish work concerns (blue tape items) addressed at the New Home Orientation / Walk-through preformed prior to closing. NO VERBAL REPRESENTATIONS: It is natural during the course of the transaction for the Buyer(s) to have questions regarding their new home. In order for the Buyer(s) to receive responsible, clear and concise answers to their questions, all questions shall be presented directly to the Seller or the Seller s Agent for clarification. Buyer(s) understands and acknowledges that field superintendents, subcontractors, and real estate agents, are not authorized to make representations for Seller. All parties hereto agree that no verbal representation shall modify the written agreement and that the full understanding shall be limited to the written agreement together with any clarification made by Seller in writing. *****BUYER(S) ARE NOT AUTHORIZED TO WALK THROUGH THE HOME WITHOUT SELLER S AGENT PRESENT.***** SALE AND MARKETING BROCHURES, FLIERS AND WEBSITES: Buyer(s) understands that model homes, houses in other Benjamin Ryan Communities, LLC developments, sales brochures, fliers, websites and any other advertising media that may contain drawings or pictures of homes are not replicas of the home that will be built. Seller reserves the right to alter design, layout and features as necessary without notice to Buyer(s). For example: the garage may be either on the right or left side of the lot; there may or may not be a front porch railing; hardwood or tile may be standard for the front entry landing, and so forth. Buyer(s) also understands that all homes are built individual basis and may have slight variances compared to other homes of the same style or model. LOCATION OF HOME ON THE LOT AND FINAL LOT GRADE: The location of the house on the lot is at the sole discretion of the Seller. Buyer(s) acknowledges that in accordance with International Building Codes as well as state and local jurisdictional building code requirements, Seller may cause certain changes to the site or lot grade. Buyer(s) acknowledges that changes made to the site or lot grade is at the sole discretion of the Seller. Seller reserves the right to make changes or adjustments to the site or lot grade as necessary without notice to the Buyer(s).

3 Page 3 of 5 APPROVAL OF COVENANTS, CONDITIONS AND RESTRICTIONS (CC&R S) AND/OR HOMEOWNER S ASSOCIATION (HOA): If applicable, Buyer(s) shall become a member of the Homeowner s Association for the development in which the property is located, upon closing. The association is a non-profit corporation to regulate the neighborhood s Covenants, Codes and Restrictions, and maintain common areas. In most cases management of the Home Owners Association will be through Park 52 Association Management LLC; P.O. Box 9038 Tacoma, WA 98490; ph ; although each neighborhood is unique unto themselves and some neighborhoods may have a different management companies. Each association will have circumstances unique to their location, and thus fees will vary by Management Company. The fees for Park 52 Association Management are as follows; a one-time transfer fee of $ (one hundred twenty-five dollars and no/100 s) and three (3) months of HOA dues, in an amount determined in the CC&R s of the individual association, of the HOA of record. Buyer(s) has or shall receive a copy of the neighborhood CC&R s and HOA s documents and will accept and approve each as a part of this purchase and sale agreement. If Buyer(s) disapproves of either the CC&R s or HOA documents, Buyer(s) shall do so in writing within two (2) days of mutual acceptance. If Seller does not receive notice of disapproval then it shall be deemed the CC&R s and HOA documents have accepted by the Buyer(s). Furthermore, Buyer(s) hereby agrees to abide by the rules of said CC&R s and HOA documents and pay any dues and/or assessments associated with membership in a timely manner. CUSTOMIZATION SESSION: Buyer(s) and Seller, or Seller s representative, will attend a Buyer(s) customization session of the home, upon mutual agreement. Buyer(s) can forego the customization session, but must meet with Seller, or Seller s representative, to discuss the home building process. Buyer(s) agrees to proceed to closing even if Seller has not completed items noted on the customization / upgrade list; although Seller shall work to complete items defined during the customization / upgrade session in a timely manner. Seller reserves the right to address any items listed; e.g. drywall, paint, etc. to general industry standards. Buyer(s) agrees that items not listed during the session are considered warranty items and shall be addressed according to the provisions set forth in the most recent edition of the Benjamin Ryan Communities, LLC Homeowner s Manual. Buyer(s) understands that ALL options / upgrades shall be selected within three (3) days of mutual agreement and shall be paid for at time of order. Buyer(s) further understand that intent of the customization session is to determine such items as interior/exterior paint colors, placement of cable and telephone jacks, appointment scheduling for surface selections, general building process and discussion of any upgrade items that have been defined in the accompanying purchase and sale agreement; the average customization session should not exceed two (2) hours. UPGRADES: All UPGRADES ARE TO BE SELECTED AND PAID IN FULL BY BUYER(S) BEFORE CONSTRUCTION BEGINS AND ALL ITEMS SHALL BE CONSIDERED A NON-REFUNDABLE DEPOSIT. Payment in full is required for all upgrades at time of order, regardless of whether or not the contract is for a home under construction or the contract is for a pre-sale. Under certain circumstances, and subject prior approval by both lender and builder, upgrade purchases may be credited back in full at closing. Upgrade requests for homes already under construction will depend on the type and availability, and costs will be determined on a transaction by transaction basis. Published upgrade pricing is for pre-sale homes only, and is subject to change without notice. Signing of the addendum for upgrades constitutes a fully executed contract. Changes requested after that time will be subject to a $ (two-hundred fifty dollar and no/100 s) fee, payable at time or change/addition request. NEW HOME ORIENTATION: Buyer(s) and Seller, or Seller s representative, shall attend a mandatory New Home Orientation / Walkthrough at the home, prior to closing; this is the only opportunity to address cosmetic issues prior to the beginning of the warranty period. Buyer(s) agrees that items not listed on the New Home Orientation / Walkthrough Checklist are considered warranty items and shall be addressed according to the provisions set forth in the most recent edition of the Benjamin Ryan Communities, LLC Homeowner s Manual. Seller reserves the right to address cosmetic issues listed on the New Home Orientation / Walkthrough Checklist to general industry standards. Buyer(s) agrees to proceed to closing even if Seller has not completed cosmetic issues noted on the New Home Orientation / Walkthrough Checklist. Buyer(s) acknowledges that Seller, in most cases, will address/complete cosmetic issues, within seven (7) days of closing, although, Buyer(s) must acknowledge in some cases, where items may need to be obtained from a supplier, that the time frame will be lengthened to the extent of the supplier s schedule.

4 Page 4 of WARRANTY: In addition to the Seller s one year limited Builder warranty (as specified in the New Homeowner Manual) the Seller will provide a 2-10 Home Buyers Warranty to the Buyer at the time of closing. Buyer acknowledges that they have received a copy of the 2-10 Home Buyer Warranty booklet. MANUFACTURED PRODUCTS: Buyer(s) understands that this home shall be equipped with manufactured products including, but not limited to: siding, windows, kitchen appliances, furnace, water heater, skylights, roof trusses, doors, hinges, cabinetry, plumbing fixtures, sink basins, shower enclosures, pre-finished hardware, flooring, etc. Buyer(s) understands that the most recent and applicable Homeowner s Manual shall outline the sole remedy for claims. Buyer(s) shall assume all risk associated with all manufactured products and is hereby waiving all the claims against the Seller relating thereto, with the exception to the provision outlined in the most recent and applicable Homeowner s Manual. Seller shall cooperate with any claims the Buyer(s) desires to pursue against the manufacturer of included products, provided there is no cost or liability to Seller. COUNTY/CITY SANITARY SEWER CAPACITY CHARGE: This property may be subject to a monthly sanitary sewer charge that will be assumed by the Buyer(s) and will run with the property. AGENT AS PRINCIPAL: Buyer(s) understands that Seller, Agent/Principal is a licensed real estate agent and is acting as a principal in the agreement for his/her own account and is not represented by a real estate agent and/or attorney. If agent is selling agent s own property, the Agent shall provide a completed Seller s Disclosure Statement (Form 17) to the Buyer(s) according to RCW even if the transaction is exempt, or Buyer(s) chooses to waive the right to receive Disclosure. EARNEST MONEY: Selling licensee acknowledges receipt of earnest money from Buyer(s) in the amount of (dollars), in the form of (cash/check/money order). Buyer(s) and Seller agree that said earnest money shall be held by FIRST AMERICAN TITLE COMPANY. Buyer(s) agrees that the earnest money shall be released to Seller ten (10) days after mutual acceptance of Purchase and Sale Agreement and that once the funds have been released to Seller, said funds shall become a nonrefundable deposit towards the purchase price. In the event Buyer(s) fails to close the transaction for any reason, the earnest money funds remaining at FIRST AMERICAN TITLE COMPANY (title company) shall be disposed of according to the terms of the Purchase and Sale Agreement. However, all earnest money funds released to the Seller prior to such termination shall remain the property of the Seller, and will not be refunded for any reason. PRIVATE HOME INSPECTIONS: Notwithstanding NWMLS form 35, if Buyer(s) elects to have a private inspection, Buyer(s) shall schedule such inspection within 48 hours after the New Home Orientation / Walkthrough, and at least one (1) day prior closing the transaction. The inspection must be conducted by a professional licensed inspector at Buyer(s) expense, and documented by a written report from the inspector. All corrections are based upon manufacturer s recommendations, jurisdictional code requirements, IBC and/or IRC standards if applicable. Buyer(s) right to terminate based upon defect identified in the report is strictly limited to such defect that violates the local jurisdictional building code(s). Buyer may not terminate the transaction based upon identification of any deficiencies unless all of the following circumstances occur: (a) Buyer shall provide Seller with a complete copy of the written report within three (3) business days of completion, identifying any deficiencies or violations the local jurisdictional building code(s), herein referred to as Deficiencies. (b) Buyer(s) must clearly, specifically state which Deficiencies, identified in the report, that Buyer(s) is in dispute of, and said information is to place on form NWMLS for 34 or 35B. (c) Buyer(s) shall provide seller with no less than thirty (30) days in which to cure the identified as Deficiencies stated on NWMLS for 34 or 35B. (d) Seller fails or declines to cure the identified Deficiencies within the allowed thirty (30) days

5 Page 5 of 5 Buyer(s) hereby acknowledges that Seller is a licensed builder and time is of the essence; therefore Buyer(s) also acknowledges that the construction process will not stop for private inspections. Buyer(s) acknowledges that Seller, in most cases, will address/complete cosmetic issues identified during the New Home Orientation / Walkthrough checklist, within seven (7) days of closing, although, Buyer(s) must acknowledge in some cases, where items may need to be obtained from a supplier, that the time frame will be lengthened to the extent of the supplier s schedule. CONDITIONS PRECEDENT: TRANSACTION SUBJECT TO LOT PURCHASE AND/OR OBTAINING A BUILDING PERMIT A: This agreement is subject to Seller obtaining a building permit on or before. B: This agreement is subject to Seller acquiring title to the land on or before Buyer s closing date. If above box has been checked and Seller has not completed the indicated item by the specified date, the entire Purchase and Sale agreement shall be considered null and void and the Earnest Money shall be refunded to Buyer(s). Buyers only remedy shall be the return of any monies paid out to the Seller. BUYER(S) MUST BE PRE-APPROVED with Charles Cuthbert of 1 ST Security Bank, Michael Fornerette of Guild Mortgage OR Shy-Anne Haney of LoanStar Home Lending. Buyer(s) may use lender of choice, but Buyer(s) is still required to make application with the above lender, if only for purposes of pre-approval. Contact Charles Cuthbert at (253) or on his cell at (253) or Contact Michael Fornerette at (206) or Contact Shy-Anne Haney at (360) AGENT COMMISSIONS: Agent acknowledges, and hereby agrees that commissions are based on net sale price of the home prior to any upgrades, concessions, closing costs, or like increases. For example: Net sale price of the home is $190,000, but the buyer increases their loan amount to $200,000 to cover closing costs or other expenses; the agent s commission is calculated on the $190,000 net sales price, NOT the $200,000. Buyer(s) Date Seller Date Buyer(s) Date Listing agent Date Seller agent Date