SELLER S ADDENDUM TO CONDOMINIUM PURCHASE AND SALE AGREEMENT

Transcription

1 SELLER S ADDENDUM TO CONDOMINIUM PURCHASE AND SALE AGREEMENT (To be used with NWMLS Form 28, Rev. 6/92 or later. This addendum is in lieu of NWMLS Form 29) THIS ADDENDUM between ( Buyer ) And MP 22 LLC, a Washington limited liability company ( Seller ), amends and modifies the Condominium Real Estate Purchase and Sale Agreement dated, 20 relating to Unit of Hunt Highlands Condominium. Buyer and Seller agree as follows: 1. Occupancy Representations: Buyer hereby represents that the Unit will be Buyer s second home investment property (check one) upon closing of the purchase. Buyer agrees to make the same representations to any lending institution to which application is made for a loan to purchase the Unit. 2. Financing: Buyer s obligation to purchase the Unit pursuant to the Agreement is is not (check one) conditioned upon Buyer s obtaining for a portion of the purchase price. In the event this Agreement is condition upon financing, the terms and agreement of Seller s Financing Addendum are attached hereto and incorporated herein by reference. If the Agreement is not conditioned upon financing, Buyer represents to Seller that Buyer has sufficient funds to close the transaction without financing. 3. Closing Date: The close of escrow shall occur by the later of, or days following substantial completion of the Unit upon at least ten (10) days written notice to Buyer given by Seller or Escrow Agent, but in no event sooner than the expiration of any applicable financing contingency periods set forth in the Financing Addendum (the Designated Date ). For purposes of this paragraph, substantial completion of all agreed improvements pursuant to the Standard Specifications and agreed upgrades/changes on Addendum B of this contract and any Addenda hereto, and Seller s receipt of the occupancy permit for the Unit. In the event Buyer fails to close escrow on the Designated Date through no fault of Seller, Buyer shall be assessed a per diem extension fee, calculated based at a rate of twelve percent (12%) per annum of the Purchase Price prorated for each day beyond the Designated Date until the Closing Date. Said extension fee shall not be applied to the Purchase Price. The Closing Date shall be that day on which the Deed is recorded at the Pierce County Auditor s Office ( Closing Date ). 4. Walk Through Orientation/Possession and Keys: Prior to Closing Date, on a date and at a time specified by Seller, Buyer and Seller will conduct a walk-through inspection of the Unit at which time any omissions or defects will be noted in writing pursuant to paragraph 3 of the Limited Warranty Addendum (the Punch List Items ). The existence of any such Punch List Items or other non-structural construction defects which do not preclude the Unit from being occupied as a residence shall not entitle Buyer to cancel this Contract or delay the Closing beyond the Designated Date. Possession and occupancy of the Unit shall be delivered to Buyer on the Closing Date. Unless otherwise agreed in writing, on the Closing Date Seller shall provide keys to Unit and garage door opener with gate access. Mail keys must be obtained from Postal Carrier. Buyer s Initials: Buyer s Initials: 1

2 5. Construction and Completion: A. Buyer acknowledges and agrees that the Unit is being purchased by Buyer in an As Is condition subject to the walkthrough. If not already complete, Seller shall complete the Improvements subject to substitution of materials of equal or better quality and subject to such changes as may be required (i) by and Federal, State, County or local government authority, (ii) in order to accommodate any changes requested by Buyer and approved by Seller subject to conditions listed herein, or (iii) to accommodate any changes which Seller, acting reasonably, may deem necessary, all without any consent from Buyer. B. Completion dates are subject to such delays as may be caused by or contributed to as a result of changes per any Amendment requested by Buyer, failure of Buyer to make selections, failure of Buyer to timely qualify for a Loan, casualties, acts of God, unusually severe weather conditions, labor difficulties, material or fuel shortages, vandalism, litigation, utility company delays, governmental authority moratoriums or delays (including but not limited to delays in obtaining permits or construction approvals) or other conditions or events beyond the control of Seller. C. If not already installed in the Unit or set forth on Addendum B Upgrade/Change Addendum, within three (3) days from the date Seller gives Buyer costs, Buyer shall make any selections applicable. 2 Buyer s Initials: Buyer s Initials: D. Any and all changes or Improvements requested by Buyer to the Unit on Addendum B or additional changes must be set forth on a written amendment ( Amendment ). No Amendment shall be effective unless accepted in writing by Seller. Buyer expressly authorizes Seller to make material substitutions of equal or better quality if necessary. Work on any items noted in Addendum B and/or any subsequent Amendments will not be started until the earlier of: (1) Buyer providing Seller with a full loan approval letter by Buyer s lender that is satisfactory to Seller (Buyer understands that they are releasing their financing contingency and all earnest monies paid to escrow are hereafter forfeitable), or (2) Buyer placing in escrow a letter signed by all parties to this Contract stating all contingencies have been removed and all earnest monies or deposits are nonrefundable. E. At Seller s sole discretion, Buyer may be required to deposit into Escrow, or with Seller, at Seller s discretion, additional funds to cover the cost of upgrades or options whether specified in Addendum B or in any Amendment to this Contract. The parties recognize that Buyer s upgrades may not increase the fair market value of the Unit, and such additional funds may be required regardless of the appraised value for the Unit. If this transaction fails to close for any reason whatsoever (including, but not limited to, the failure of Buyer to obtain the Loan, if applicable, or to satisfy any other contingencies), other than the default or failure to perform by Seller, the funds of Buyer for said upgrades and/or options will belong to Seller and Buyer will have no claim thereto ( Costs of all Extras ). The parties agree that this provision is reasonable because of the significant risk Seller will be unable to recover the costs of upgrades and/or options whether specified in Addendum B or any Amendment to this Contract from a subsequentbuyer of the Unit. Buyer acknowledges than an

3 appraiser may not give value (or full value) of upgrades and/or options, which may thereby reduce the Loan available to Buyer and could increase Buyer s required cash down payment. 6. General Disclosure: Buyer understands that (i) the as-built location of utility lines, utility improvements (such as but not limited to junction boxes, transformers or pedestals) and sewer taps, may vary from locations shown on the Site Plan, (ii) there may be minor encroachments of buildings, and other improvements within the Project; (iii) future construction or in the connection with the Unit by Buyer must comply with the Declaration and applicable laws (including building codes); (iv) the character and uses of property surrounding and in the vicinity of the Unit and Project may change; (v) there may be deviations in the Unit from Seller s models (such as floor coverings, wall coverings, window treatments, decorator items, fireplaces, intercoms, mirrors, furniture and furnishings) which are upgrades over Seller s standard features, such upgrades are not included in the Purchase Price, and (vi) the Underlying Approval as defined in the Declaration contemplates that the Adjoining Property shall have a mixed-use building containing residential and office use. 7. Limited Warranties: Buyer acknowledges and agrees that the Limited Warranty Addendum made part of the Agreement is provided in place of the implied warranties of quality under the Washington Condominium Act. RCW , and shall be binding upon the parties to the extent that it does not reduce the protections provided to Buyer pursuant to such section. Buyer further agrees: That the intent and purpose of the Limited Warranty Addendum is to provide the Buyer and Seller, prior to the consummation of the transaction, with a clear and predictable understanding of their rights duties and obligations; That the provisions of the Limited Warranty Addendum, and the rights, duties and obligations of the Seller and Buyer thereunder, is given by the Seller and accepted by the Buyers: (i) in lieu of and to the exclusion of all other expenses or implied warranties (including without limitation and implied warranty of habitability, merchantability or fitness for a particular use); and (ii) in lieu of into the exclusion of all other legal or equitable rights, remedies or causes of action; That the Limited Warranty Addendum is not intended to be in addition to the implied warranties of qualify provided by RCW (2), but rather that such implied warranties are to be interpreted and informed in accordance with the provisions of the Limited Warranty Addendum; That in the event of any variance (including without limitation variances due to definition of defects, exclusions, performance standards, deductibles, remedies or measure of damages) between the provisions of the Limited Warranty Addendum and an asserted interpretation of the implied warranties provided by RCW (2), that the provision of the Limited Warranty Addendum shall control to the maximum extent permitted by law; That Buyer s acknowledgement and agreement is a direct and material inducement to Seller s agreement to sell the Unit for the agreed price, and has been relied upon by Deller (and Seller s contractor, subcontractors, vendors, suppliers and other professional); and That Buyer s acknowledgement and agreement shall be binding upon Buyer in Buyer s capacity as a Unit Owner and an Association officer and Board member, and be binding with respect to both the Unit and the Common Elements. 3

4 8. Buyer agrees that Seller must provide a 2-10 Home Warranty at closing. 9. NOTICE REGARDING COMMENCEMENT OF LAWSUIT: ARTICLE 26 OF THE DECLARATION CONTAINS REQUIRED PROVISIONS FOR DISPUTE RESOLUTION. IN ADDITION, CHAPTER RCW CONTAINS IMPORTANT REQUIREMENTS YOU MUST FOLLOW BEFORE YOU MAY FILE A LAWSUIT FOR DEFECTIVE CONSTRUCTION AGAINST THE SELLER OR BUILDER OR YOUR CONDOMINIUM. FORTY-FIVE DAYS BEFOER 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 WITH 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. 10. Title: Seller is to provide title insurance at closing. Title to the Property is to be free of all encumbrances or defects except for the Underlying Approvals identified and site specific easements/restrictions described in the Declaration. Encumbrances to be discharged by Seller shall be paid from Seller s funds at the date of closing. The following also shall not be deemed encumbrances or defects: Rights reserved in federal patents or state deed; terms and conditions of the site plan review (SPR ), and Conditions Use Permits (CUP and CUP ); building or use restrictions consistent with current zoning; utility easements, other easements not inconsistent with Buyer s intended use and/or to accommodate the Adjoining Project; and any reserved oil and/or mining rights. Seller shall convey title by Statutory Warranty Deed free of encumbrances except those set forth above. 11. TITLE INSURANCE COMPANT & CLOSING AGENT: Buyer and Seller agree that the title insurance company and the closing agent for the Agreement shall be Chicago Title and Escrow. Seller shall be allowed the Builder rate on title and escrow fees. In the event of a conflict between this Addendum and any other contract documents, this Addendum shall control unless the other document specifically references this Addendum and the fact that it supersedes the provisions of this Addendum. 4

5 SELLER: MP 22 LLC By:, Its Address: Telephone: BUYER:, Buyer Address: Telephone:, Buyer Address: Telephone: 5