SCHNEIDER HOMES INC. OR ASSIGNS BUILDER ADDENDUM TO PURCHASE AND SALE AGREEMENT MOSES LAKE, WA
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1 SCHNEIDER HOMES INC. OR ASSIGNS BUILDER ADDENDUM TO PURCHASE AND SALE AGREEMENT MOSES LAKE, WA This Addendum is attached to and made a part of the Purchase and Sale Agreement dated, 20, between Schneider Homes, Inc. or Assigns, as Seller, and, as Purchaser(s), for Community:, Div., Lot #, Plan#, Elevation: Garage Type. The provisions of this Builder Addendum shall control any inconsistency with the Attached Purchase and Sale Agreement and may not be amended except in a writing signed by Seller expressly stating that the terms of this Addendum are amended. 1. Improvements. This is an agreement to purchase and sell a home as it will be or has been built. This Agreement defines the scope of Seller s obligations. Nothing filed with any governmental agency, no plans, drawings, specifications and no renditions, illustrations, advertising or other writings (except writings made a part of this Agreement by express written reference to this Agreement) extend or define such obligations. Any construction plans and specifications that have been or may be prepared are intended as guides for builders only, are not a part of this Agreement and do not define Seller s obligations. Model homes in the development may have been specially decorated and furnished to demonstrate how a home may be made to look and to accommodate a sales office. Consequently, some of the decorative features and furnishings in a model home will not be included as a part of the home purchased under this Agreement. No furnishings shall be provided under this Agreement. 2. Pre-Sale. Is this a pre-sale? YES NO If Yes, the following section #2 applies. A. Pre-construction Meeting. Purchasers shall make immediate application for the loan. When the preliminary loan approval is received by Purchasers, they shall furnish Seller with a copy. Seller will then arrange a pre-construction meeting with the project superintendent. To arrange for Pre- Construction Meeting, contact Schneider s Sales Representative at the Site Sales Office. At the meeting, Purchasers shall designate locations for telephone and cable jacks and may select any construction options available on Seller s Standard Option List and may make any other construction change acceptable to Schneider from the standard floor plan and specifications. IN NO EVENT SHALL ANY STRUCTURAL CHANGE BE MADE. Purchasers shall pay the price, including sales tax, for each selected change or option promptly on or before the agreed due date. No change or option shall be made unless the price of each selected change or option is paid in full on the date agreed. After the work order for any construction option, upgrade or change has been issued and sent to the field, no refund of the price for any option, upgrade or change shall be made and purchaser shall not have the right to make any additional construction changes, or select additional construction options or upgrades so that construction of the home is not delayed. B. Additional Construction Deposit is due within 20 days of mutual acceptance of this Purchase and Sale Agreement or upon the date of the Pre-Construction Meeting with Seller s Representative, whichever is later. Purchaser will pay Seller $10,000 as a Construction Deposit as consideration for starting the permit process and construction of the home for the Purchaser. The Construction Deposit will be applied toward the purchase price or purchaser s down-payment at closing. / Page 1 of 7
2 If this Purchase Agreement is subject to the sale of Purchasers home and Purchasers are bumped by a non-contingent sale of the property to others, the construction deposit payment will be refunded to Purchasers; otherwise, the construction deposit payment shall be non-refundable should Purchaser default on the Purchase and Sale Contract. C. Construction. Purchasers shall make all required or optional selections and decisions in sufficient time so that there is no delay in construction. Construction need not be started unless selected options and construction changes are first paid for in full, and no upgrades of better finish materials need be provided unless they are first paid for in full. As soon as reasonably permitted by circumstances and conditions, after the lender approves Purchasers financing, and after all payments and selections have been made, Seller will commence construction. Not all trees may be removed during clearing and grading of the lot for construction, and Seller shall have no responsibility for removal or otherwise in connection with trees which are not cleared for construction. The foundation of the house will be placed on the property taking into account requirements for efficient construction and appearance of the house in the neighborhood. DURING CONSTRUCTION, PURCHASERS SHALL NOT DISTURB WORKMEN ON THE PROPERTY WITH INQUIRIES OR INSTRUCTIONS ABOUT THE CONSTRUCTION. If Purchasers have any questions about the progress of construction, such questions shall be directed to Seller s sales representative who will help resolve any issues or problems that may arise during construction. D. Finish and Interior Selections. If this box is checked, this paragraph will apply. Depending on the status of completion of construction of the home, at Seller s option, Purchaser may have the opportunity to make selection of exterior colors, select bath and light fixtures and request and pay for upgrades in some finish items. Colors shall be selected from Seller s standard color boards and the cost of selected lighting and bath fixtures shall not exceed Seller s standard allowance for such items. If Purchaser selects an upgrade, then the cost of the upgrade in excess of the Seller s allowance for the item, plus retail sales tax, shall be paid in full at the time of the selection meeting. Purchaser understands that they shall not make nor have the right to make additional selections, changes or select additional upgrades later than 7 days after the completion of the Interior & Exterior Selection and Lighting and Bath Selection meetings in order that completion of the home will not be delayed. E. Fixture Selection. Not later than completion of drywall on the home, Purchasers shall arrange a meeting with Ken Brook at Seattle Lighting at (425) and shall there make selection of interior and exterior lighting fixtures and bath accessory fixtures. Purchasers may not select fixtures, the aggregate price of which exceeds Seller s established dollar allowance for fixtures, unless Purchasers pay the excess price and sales tax directly to Seattle Lighting at the time of selection meeting. Purchaser understands that they shall not make nor have the right to make any additional fixture selection changes or upgrades later than 7 days after completion of the Exterior Paint, Masonry Trim, and Cabinet Selection Meeting, Lighting and Bath Fixture Selection Meeting and Carpet and Flooring Selection Meeting in order that completion of the home will not be delayed. Purchaser shall arrange for appointments to make these selections as follows: a) For Interior & Exterior Selection Meeting: Contact: Schneider Homes Project Manager, Dave Hunt (509) b) For Lighting & Bath Fixtures Selection Meeting: Contact: Ken Brook (425) at Seattle Lighting c) For Carpet and Flooring Selection Meeting: Contact: Gina at Cost-Less Carpets (509) Page 2 of 7 /
3 3. New Home Orientation Meeting (Walkthrough). Prior to closing, a New Home Orientation Meeting with Seller s Representative will be required and scheduled with Purchaser to inspect the home and make a walkthrough check list to document any needed corrections prior to occupancy which are agreed to by Purchaser and Seller. Agreed corrections shall be made in a timely and professional manner either prior to or shortly after closing. Seller s representative will also go over the operation and maintenance of all systems in the home and deliver to Buyer warranties for appliances and equipment, Schneider Homes New Home Maintenance Manual and the 2 Year Limited Extended Builder Warranty. Completion of corrections documented at this meeting shall not delay closing unless the correction is required by a governmental agency as a condition to issuance of a final certificate of occupancy. 4. Purchaser s Waiver of Real Property Transfer Disclosure Statement and Rescission Right. In accordance with RCW and RCW , Purchaser expressly waives the right to receive the Real Property Transfer Disclosure Statement described and referred to in Chapter of the Revised Code of Washington. Under certain circumstances, this waiver does not apply to the Environmental section of the Real Property Transfer Disclosure Statement. If the waiver does not apply, Purchaser acknowledges and confirms timely delivery and receipt of the attached completed Form 17, page 5 Environmental section of the Seller Disclosure Statement. Purchaser further waives the right of rescission as authorized in RCW (3). ENVIRONMENTAL SECTION OF FORM Environmental YES NO DON T KNOW A. Have there been any flooding, standing water, or drainage problems on the property that affect the property or access to the property?... B. Does any part of the property contain fill dirt, waste, or other fill material?... C. Is there any material damage to the property from fire, wind, floods, beach movements, earthquakes, expansive soils, or landslides?... D. Are there any shorelines, wetlands, floodplains, or critical areas on the property?... E. Are there any substances, materials, or products in or on the property that may be environmental concerns, such as asbestos, formaldehyde, radon gas, lead-based paint, fuel or chemical storage tanks, or contaminated soil or water?... F. Has the property been used for commercial or industrial purpose?. G. Is there any soil or groundwater contamination?... H. Are there transmission poles or other electrical utility equipment installed, maintained or buried on the property that do not provide utility services to the structure on the property?.. I. Has the property been used as a legal or illegal dumping site?... J. Has the property been used as an illegal drug manufacturer?. K. Are there any radio towers in the area that cause interference with cellular telephone reception?. Each property is different buyer should review title report. BUYERS UNDERSTAND AND AGREE THAT THE ABOVE ENVIRONMENTAL PARAGRAPH IS THE ONLY PORTION OF THE FORM 17 OF NWMLS SUPPLIED BY SELLER. Page 3 of 7 /
4 5. The Washington Warranty Six Year Warranty for New Homes, Residential Warranty Corporation (RWC). Purchaser acknowledges that Purchaser has been provided with a sample copy of The Washington Warranty, Six Year Limited Warranty for New Homes published by Residential Warranty Company, LLC, understands the warranty set forth in the booklet, and agrees that provisions of the booklet and terms defined in the booklet are incorporated herein. During years One through Six: Designated Structural Elements (DSE) are warranted for six (6) years from the Effective Date of Warranty as described in Section II. Warranty Standards. B. Six Year DSE Coverage of the warranty booklet. Residential Warranty Company, LLC is the warrantor for Designated Structural Elements in the home. First Year Coverage as detailed in the RWC Warranty Booklet. SECTION 1. THE LIMITED WARRANTY & SECTION II WARRANTY STANDARDS A. YEAR ONE COVERAGE ONLY. The Builder warrants that for a period of one (1) year after closing, Warranty items in the home will function and operate as described in the Warranty Standards of Year One described I Section II of the RWC Warranty Booklet. Appliances in the home are warranted by the manufacturer. Landscaping, fencing and exterior concrete are excluded. For warranty coverage during that first year after closing, contact the Builder or appliance manufacturer for service as directed in Schneider Homes New Home Maintenance Manual. The six year structural warranty is fully transferrable to a subsequent purchaser. This warranty is subject to all of the applicable terms and conditions contained in the booklet. In order to confirm the warranty after closing, the purchaser will need to go to confirm.rwcwarranty.com. They will answer a few short questions to confirm they are the purchasers and then they will receive a full color PDF of their new Warranty Confirmation form. The Warranty Confirmation will include their Validation Number, Effective Date of Warranty, Term of Coverage and any applicable Addenda. Seller hereby assigns and transfers to Purchaser effective at closing, all warranties applicable to any equipment, products and appliances furnished under this Agreement. Other than the foregoing, Seller makes no warranty, express or implied as to quality, fitness for a particular purpose, merchantability, and habitability or otherwise. In any event, Seller shall not be liable for any personal injury or other consequential or secondary damages or losses which may arise from or out of any and all defects. 6. Arbitration. In the event of a dispute under this Agreement, at the election of either party, the dispute shall be submitted for arbitration under Ch RCW by an arbitrator who shall be selected by agreement of the parties. If the parties cannot agree on an arbitrator within 30 days after notice of election to arbitrate has been given by either party to the other, either party may apply to Court under RCW for appointment of one arbitrator who shall arbitrate the dispute. Arbitration shall be made within 120 days after the arbitrator has been selected. The cost of arbitration shall be born by the parties equally. The arbitrator is authorized to award such legal or equitable relief as the arbitrator deems appropriate. The arbitrator s award may be enforced in any court of competent jurisdiction. However, if an action on the dispute under this Agreement would be subject to mandatory arbitration under the provision of Ch RCW, then neither party shall have the right submit a dispute to arbitration under Ch RCW, and the dispute shall be resolved by an action subject to mandatory arbitration. Notwithstanding the foregoing, if there is an Unresolved Warranty Issue as described in The Washington Warranty booklet, the provisions of the booklet regarding arbitration shall apply in lieu of this paragraph. 7. Limitation of Actions. No proceedings to enforce any claim, known or unknown, arising incident to this transaction may be commenced by Purchaser against Seller if the claim is based on the expressed warranty more than one year after the expiration of the duration of that express warranty, or, if the claim is base on any other matter, more than one year after Purchaser is entitled to possession of the property sold hereunder. Page 4 of 7 /
5 8. Notice to Purchaser. CHAPTER RCW CONTAINS IMPORTANT REQUIREMENTS YOU MUST FOLLOW BEFORE YOU MAY FILE A LAWSUIT FOR DEFECTIVE CONSTRUCTION AGAINST THE SELLER OF BUILDER OF YOUR HOME. FORTY-FIVE DAYS BEFORE YOU FILE YOUR LAWSUIT, YOU MUST DELIVER TO THE SELLER OR BUILDER A WRITTEN NOTICE OF ANY CONSTRUCTION CONDITIONS YOU ALLEGE ARE DEFECTIVE AND PROVIDE YOUR SELLER OR BUILDER THE OPPORTUNITY TO MAKE AN OFFER TO REPAIR OR PAY FOR THE DEFECTS. YOU ARE NOT OBLIGATED TO ACCEPT ANY OFFER MADE BY THE BUILDER OR SELLER. THERE ARE STRICT DEADLINES AND PROCEDURES UNDER STATE LAW, AND FAILURE TO FOLLOW THEM MAY AFFECT YOUR ABILITY TO FILE A LAWSUIT. 9. Loan Approval. Purchaser shall deliver to Seller s Agent removal of financing contingency and a written loan commitment from Purchaser s Lender (subject only to the appraisal and title) within 20 days after mutual acceptance of this Agreement, as per Section #12 Paragraph F. 10. Closing Date. The Closing Date shall be on, or within 10 days of notice from Seller to Buyer that a Certificate of Occupancy or equivalent has been issued. 11. Selling Commission, Escrow Fees and Survival. Commission due the selling agent shall be calculated on the base list price of the home. No selling office commission shall be paid on Purchaser s upgrades which are added to the original base list price or are mortgagable extras or any addition to the original base list price to cover buyer s closing costs. One half of the customary escrow fees and tax shall be paid by Purchaser, and the balance of the escrow fees and tax calculated on a Builder s Rate shall be paid by Seller. The provisions of this Builder Addendum shall survive closing of this Sale and delivery of the deed and any termination of the Purchase and Sale Agreement. Purchaser acknowledges that no salesperson, sales agent or sales representative has the authority to bind Seller to any representation or promise, which is inconsistent with or in addition to the written terms of this Agreement. In order for Seller to be bound by any additional or inconsistent promise or representation in connection with this transaction, the representation or promise must be in writing and be accepted by an authorized signature for Seller. It is Purchaser s express duty to obtain the necessary writing if Purchaser intends to rely on any representation or promise which is not written in this Agreement regardless of any oral statements which may have been made to the contrary. 12. This section applies if buyer is financing the sale. YES NO A. Schneider Homes Preferred Lenders are ACADEMY MORTGAGE CORPORATION, HOMESTREET BANK and PRIMARY RESIDENTIAL MORTGAGE, INC. Other mortgage lenders have not obtained project approval, and approval may involve significant delays in closing and additional costs which Schneider is not willing to incur. Therefore, as a condition of Seller accepting this offer Purchaser agrees to contact one of Schneider Homes Preferred Lenders to make a full and complete formal application for financing within 3 days after mutual acceptance of this Agreement. Please refer to Schneider Homes Preferred Lender List for contact information. Schneider s Preferred Lender will pre-approve the Purchaser for a mortgage loan and provide Schneider with a written loan commitment subject only to appraisal and title within 20 days of mutual acceptance of this Purchase and Sale Agreement. / Page 5 of 7
6 B. If purchasers complete financing of this transaction through one of the Seller s Preferred Lenders then at closing, Purchaser will receive a credit at closing from the Seller not to exceed $, to be used to pay any of Purchaser s Closing Costs, Extended Rate Lock and pre-paid upgrades that Purchasers may then be obligated to pay in addition to the purchase price. Closing costs or upgrade costs that are not paid by this credit remain the Purchasers obligation. C. Purchasers may also seek financing from any other lender that Purchasers may desire to use on the condition that within 5 business days after mutual acceptance of this Agreement, Purchasers shall obtain and deliver to Seller the following representation and agreement in writing from the other lender. Seller shall assume no costs for this application. Lender s Representative and Agreement In order to induce Seller to consent to financing of this transaction covered by the attached Purchase and Sale Agreement by the undersigned Lender, Lender represents to Seller that Lender can close the loan that is required by Purchasers for the transaction on the Closing Date without any additional presale requirements, project approvals of questionnaires. Lender agrees to provide Seller with a written loan commitment to finance these Purchasers (subject only to appraisal and title) within 20 days of mutual acceptance of this Purchase and Sale Agreement. Lender s Signature Lender s Rep. Signature Date D. If Purchasers obtain this written representation and agreement from the other lender within the time provided, then Purchasers shall waive any financing contingency on or before 20 days after mutual acceptance of this Agreement and purchasers may finance this transaction with that lender. E. If the other lender selected by Purchaser is unable to finance this transaction so that it closes on or before the Closing Date set forth in this Agreement, then Seller shall have the option either (a) to extend the Closing Date upon payment of $200 as consideration for each day that closing is extended or (b) to terminate this agreement and the rights and obligations of the parties in which event the Earnest Money and money for pre-paid upgrades shall transferred to or retained by the Seller. F. If Purchasers are not able to obtain the written representation and agreement from the other lender within the time provided, then Purchasers shall finance this transaction through one of Schneider Homes Preferred Lenders unless neither of the Preferred Lenders will provide financing on terms acceptable to Purchasers, in which event Purchasers have the right to elect to terminate this agreement and the earnest money and pre-payment, if any, for up-grades agreed to shall then be refunded to Purchasers. G. Mortgageable Upgrades. Should Buyer s Lender s Appraiser not accept or include some or all of Buyer s Upgrades that were included in the original Sales Price of the Homes resulting in an appraised valuation less than the sales price of the home, Buyer s will then agree to change those upgrades to non-refundable cash type upgrades and pay Seller for these upgrades separately prior to closing. The Sales price will then and only then be adjusted to that lower appraised value. Page 6 of 7 /
7 If the Byers prepaid for mortgageable upgrades which increased the sales price of the home and appraiser did not accept or include the value of all of those items, resulting in an appraised valuation less than the final sales price of the home, then Buyers agree to change these upgrades to non-refundable cash type upgrades, and the monies pre-paid for the upgrades that were not included in the appraised valuation of the home will be applied towards these cash upgrades and will not then be credited to the Buyers at closing. The Sales price will then and only then be adjusted to that lower appraised value. If the appraised value is less than the base price of the home, including lot premium, then first one of the above will be applied and executed, then addendum 22A paragraph 6 will apply. LISTING AGENT, SELLING AGENT AND PURCHASER HEREBY ACKNOWLEDGE PURCHASERS RECEIPT OF THE ITEM LISTED BELOW: Sample Copy The Washington Warranty 6 Year Warranty for New Homes, Residential Warranty Company, LLC BUYERS HAVE READ ALL PAGES OF BUILDER ADDENDUM AND UNDERSTANDS AND AGREES TO IT INCLUDING PAGES 1 7. BUYER SIGNATURE(S): BUYER SIGNATURE(S): SCHNEIDER FAMILY HOMES (SELLER) DATE: DATE: DATE: / Page 7 of 7
8 EXHIBIT A To the Purchase and Sale Agreement dated Between Schneider Homes, Inc. or Assigns, ( Seller ) and ( Buyer ) Concerning Barrington Pointe, Lot#, Major Plat #1, Block Lot LEGAL DESCRIPTION Lot # of Barrington Pointe, Block# Lot # of the plat of BARRINGTON POINT MAJOR PLAT #1, Recorded in Grant County, WA Auditor s file No , Book 25, pages Tax Parcel # All other terms and conditions of said Agreement shall remain unchanged. Initials: Buyer / Seller / Date Date Buyer / Date
9 Identification of Utilities Addendum* Revised 10/29/15 Page 1 of 1 BARRINGTON POINTE IDENTIFICATION OF UTILITIES ADDENDUM TO PURCHASE AND SALE AGREEMENT The following is part of the Purchase and Sale Agreement dated: Between: SCHNEIDER HOMES, INC. & ASSIGNS ( Seller ) and Concerning ( Buyer ) (the Property ) Also known as (Plat Name) Barrington Pointe Lot# THE FOLLOWING IS PROVIDED FOR INFORMATION AND CONVENIENCE TO THE PURCHASER ONLY. IT IS THE PURCHASER S RESPONSIBILITY TO IMMEDIATELY NOTIFY THE FOLLOWING EXISTING UTILITY PROVIDERS WITH THE BUYER S NAME, ADDRESS AND THE EARLIER OF DATE OF OCCUPANCY OR THE CLOSING DATE. Water/Sewer/Garbage City of Moses Lake Electricity: Grant County PUD Telephone CenturyLink Communications Cable TV Northland Cable Data/Audio/Security Spectrum Communications If the above information has not been filled in at the time of mutual acceptance of this Agreement, then (1) within 5 days of mutual acceptance of this Agreement, Seller shall provide the Listing Agent or Selling Licensee with the names and addresses of all utility providers having lien rights affecting the Property and (2) Buyer and Seller authorize listing Agent or Selling Licensee to insert into this Addendum the names and addresses of the utility providers identified by Seller. Nothing in this Addendum shall be construed to diminish or alter the Seller s obligation to pay all utility charges (including unbilled charges). Buyer understands that the Listing Agent and Selling Licensee are not responsible for, or to insure payment of, Seller s utility charges. *This utility addendum shall replace NWMLS Form 22k. / / / Buyer s Initials /Date
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