10/23/2009 1 1:44:21 Recording Fee $67.00 Page 1 AM of 6 Real Estate Contract Spokane County Washington HERMAN HERMAN JOLLEY 5844990 UPON RECORDING RETURN TO: HERMAN, HERMAN & JOLLEY, P.S. 12340 E. VALLEYWAY Spokane Valley, WA 99216 R9-24763-5 CONTRACT FOR REAL ESTATE PARTIES AND DATE. This contract is entered into on October 22nd, 2009, between TERRY LEE EDWARDS and SUSANN E. EDWARDS, who acquired title as SUSAN E. EDWARDS, husband and wife, as to an undivided one-half interest, and WILLIAM B. EDWARDS, a single man, as to an undivided one-half interest, as "Seller" and ANTHONY J. FICA and STACEY M. FICA, husband and wife, as "Buyer." SALE AND LEGAL DESCRIPTION. Seller agrees to sell to Buyer and Buyer agrees to purchase from Seller the following described real estate in Spokane County, State of Washington: Lot 1 in Block 13 of SECOND ADDITION TO LIDGERWOOD PARK, as per plat thereof, recorded in Volume "I" of Plats, page 15; Situate in the City of Spokane, County of Spokane, State of Washington. 6002/62/ 0T Parcel No. 36333.2501 PRICE. Buyer agrees to pay: $ 83,000.00 Total Price a 3> Less $ 3,000.00 Results in $ 80,000.00 Down payment Amount Financed by Seller. PAYMENT OF AMOUNT FINANCED BY SELLER. Buyer agrees to pay the amount financed by Seller in the sum of $80,000.00 (hereinafter "principal balance") as follows: Monthly payments of $550.00, or more, at Buyer's option on or before the 10th day of December, 2009, including interest from the 1" day of November, 2009 at the rate of five and onehalf percent (5.5%) per annum on the declining principal balance thereof and a like amount on or before the 10th day of each and every month thereafter until the principal balance with interest is 1 Contract For Real Estate
5844990 Page 2 of 6 10/23/2009 11:44:21 AM paid in full. Monthly and any balloon payments are applied first to late charges, then to interest and the balance to the principal balance. All payments shall be made at Allegro Escrow Services or such other place as the Seller may hereafter indicate in writing. Buyer and Seller shall each pay one-half of the set up and annual escrow fees to Allegro. ACCELERATION OF BALANCE DUE. If Buyer, without written consent of Seller, (a) encumbers, (b) conveys, (c) sells, (d) assigns, (e) transfers (f) contracts to convey, sell, assign or transfer any of Buyer's interest in the property or this Contract, Seller may at any time thereafter either raise the interest rate on the balance of the unpaid principal balance or declare the entire principal balance and accrued unpaid interest immediately due and payable in full. LATE CHARGES. If any monthly payment on the purchase price is not made within ten (10) days after the date it is due, Buyer agrees to pay a late charge equal to 5% of the amount of such monthly payment. Such late charge shall be in addition to all other remedies available to Seller and the first amounts received from Buyer after such late charges are due shall be applied to the late charges. ENCUMBRANCES AGAINST THE PROPERTY. The property is subject to taxes and assessments not yet due, easements, agreements, restrictions, reservations, covenants, declarations, rights-of-way, surveys, relinquishments, and notices of record or contained in the plat, if any. The undersigned parties hereby acknowledge that the Buyer is relying on the warranties in Seller's Deed and therefore agree to waive tide insurance and acknowledge that they are not relying on the office of Herman, Herman and Jolley, P.S. to determine the status of Seller's title and release and hold harmless the office of Herman, Herman & Jolley, P.S. regarding any defects in Seller's tide. FULFILLMENT DEED. Upon payment of all amounts due Seller, Seller agrees to deliver to Buyer a Statutory Warranty Deed in fulfillment of this Contract. POSSESSION. Buyer has been renting the property from Seller prior to entering into this Contract and shall be entitled to possession of the property from and after the date of this Contract. TAXES, ASSESSMENTS AND UTILITY LIENS. Buyer agrees to pay by the date due all taxes and assessments becoming a lien against the property after the date of this Contract. Buyer may in good faith contest any such taxes or assessments so long as no forfeiture or sale of the property is threatened as the result of such contest. Buyer agrees to pay when due any utility charges which may become liens superior to Seller's interest under this Contract. INSURANCE. Buyer agrees to keep all buildings now or hereafter erected on the property described herein continuously insured under fire and extended coverage policies in an amount not less than the balance due Seller, or full insurable value, whichever is lower. All policies shall be held by the Seller and be in such companies as the Seller may approve and have loss payable first to Seller as their interests may appear and then to Buyer. Buyer may within 30 days after loss negotiate a contract to substantially restore the premises to their condition before the loss. If the insurance proceeds are sufficient to pay the contract price for restoration or if the Buyer deposits in escrow any deficiency with instructions to apply the funds on the restoration contract, the property shall be restored unless the 2 Contract For Real Estate
5844990 Page 3 of 6 10/23/2009 11:44:21 AM underlying encumbrances provide otherwise. Otherwise the amount collected under any insurance policy shall be applied upon any amounts due hereunder in such order as the Seller shall determine. In the event of forfeiture, all rights of Buyer in insurance policies then in force shall pass to Seller. If Buyer fails to obtain insurance and Seller elects to obtain insurance, Buyer shall forthwith pay Seller the amount of such insurance premium plus any costs and attorney fees incurred therewith. NONPAYMENT OF TAXES AND UTILITIES CONSTITUTING LIENS. If Buyer fails to pay taxes, assessments, or utility charges constituting liens superior to Seller's interest under this Contract, Seller may pay such items and Buyer shall forthwith pay Seller the amount thereof plus a late charge of 5% of the amount thereof plus any costs and attorney's fees incurred in connection with making such payment. CONDITION OF PROPERTY. Buyer has resided in the property as a tenant prior to entering into this Contract and has had an opportunity to inspect the property or have the property inspected. Buyer accepts the property in its present "as is" condition and acknowledges that Seller has made no representation or warranty concerning the physical condition of the property or the uses to which it may be put. Buyer agrees to maintain the property in compliance with all applicable laws. Buyer hereby agrees to waive the Seller Disclosure requirement of RCW 64.06. RISK OF LOSS. Buyer shall bear the risk of loss for destruction or condemnation of the property. Any such loss shall not relieve Buyer from any of Buyer's obligations pursuant to this Contract. WASTE. Buyer shall keep the property in good condition and repair and shall not commit or suffer waste or willful damage to or destruction of the property. CONDEMNATION. Seller and Buyer may each appear as owners of an interest in the property in any action concerning condemnation of any part of the property. Buyer may within 30 days after condemnation and removal of improvements, negotiate a contract to substantially restore the premises to their condition before the removal. If the condemnation proceeds are sufficient to pay the contract price for restoration or if the Buyer deposits in escrow any deficiency with instructions to apply the funds on the restoration contract, the property shall be restored unless underlying encumbrances provide otherwise. Otherwise, proceeds of the award shall be applied toward payment of the balance due on the purchase price, as Seller may direct. DEFAULT. If the Buyer fails to observe or perform any term, covenant or condition of this Contract, Seller may: (a) Sue for Installments. Sue for any delinquent periodic payment; or (b) Specific Performance. Sue for specific performance of any of Buyer's obligations pursuant to this Contract; or (c) Forfeit Buyer's Interest. Forfeit this Contract pursuant to Ch. 61.30, RCW, as it is presently enacted and may hereafter be amended. The effect of such forfeiture includes: (i) all right, tide and interest in the property of the Buyer and all persons 3 Contract For Real Estate
5844990 Page 4 of 6 10/23/2009 11:44:21 AM claiming through the Buyer shall be terminated; (ii) Buyer's tights under the Contract shall be cancelled; (iii) all sums previously paid under the Contract shall belong to and be retained by the Seller or other person to whom paid and entitled thereto; (iv) all improvements made to and unharvested crops on the property shall belong to the Seller; and (v)buyer shall be required to surrender possession of the property and improvements to the Seller 10 days after the forfeiture. (d) Acceleration of Balance Due. Give Buyer written notice demanding payment of said delinquencies and payment of a late charge of 5% of the amount of such delinquent payments and payment of Seller's reasonable attorney's fees and costs incurred for services in preparing and sending such Notice and stating that if payment pursuant to said Notice is not received within thirty (30) days after the date said Notice is either deposited in the mail addressed to the Buyer or personally delivered to the Buyer, the entire balance owing including interest, will become immedia tely due and payable. Seller may thereupon institute suit for payment of such balance, interest, late charge and reasonable attorneys' fees and costs. (e) Judicial Foreclosure. Sue to foreclose this contract as a mortgage, in which event Buyer may be liable for a deficiency. RECEIVER. If Buyer has rented or leased the property with Seller's consent and Seller has instituted any proceedings specified in the preceding paragraphs regarding Default and Buyer is receiving rental or other income from the property, Buyer agrees that the appointment of a receiver for the property is necessary to protect Seller's interest. BUYER'S REMEDY FOR SELLER'S DEFAULT. If Seller fails to observe or perform any term, covenant or condition of this Contract, Buyer may, after 30 days' written notice to Seller, institute suit for damages or specific performance unless the breaches designated in said notice are cured. NON-WAIVER. Failure of either party to insist upon strict performance of the other party's obligations hereunder shall not be construed as a waiver of strict performance thereafter of all of the other patty's obligations hereunder and shall not prejudice any remedies as provided herein. ATTORNEYS' FEES AND COSTS. In the event of any breach of this Contract, the party responsible for the breach agrees to pay reasonable attorneys' fees and costs, including costs of service of notices and title searches, incurred by the other party. The prevailing party in any suit instituted arising out of this Contract and in any forfeiture proceedings arising out of this Contract shall be entitled to receive reasonable attorneys' fees and costs incurred in such suit or proceedings. The venue of any legal action shall be in Spokane County, Washington. NOTICES. Notices shall be either personally served or shall be sent certified mail, return receipt requested and by regular first class mail to Buyer and Seller at their address last known to the escrow agent, or such other addresses as either party may specify in writing to the other party. Notices 4 Contract For Real Estate
5844990 Page 5 of 6 10/23/2009 11:44:21 AM shall be deemed given when served or mailed. Notice to Seller shall also be sent to any institution receiving payments on the Contract. TIME FOR PERFORMANCE. Time is of the essence in performance of any obligations pursuant to this Contract. SUCCESSORS AND ASSIGNS. Subject to the restrictions against Buyer encumbering, conveying, selling, assigning or transferring any of Buyer's interest in the property or this Contract, or contracting for the same, or leasing or renting the property, the provisions of this Contract shall be binding on the heirs, successors and assigns of the Seller and Buyer. ALTERATIONS. Buyer shall not make any substantial alteration to the improvements on the property without the prior written consent of Seller, which consent will not be unreasonably withheld. RESERVE PAYMENTS FOR TAXES AND INSURANCE. In addition to the monthly payments of principal and interest due hereunder, Buyer agrees to pay monthly reserve payments equal to 1/12th of the estimated annual real estate taxes, assessments if any, and fire insurance premiums based on Seller's reasonable estimate of the same. Said monthly reserve payments shall be held by the escrow agent in a "Reserve Account", which account shall not accrue interest The initial monthly reserve payments for estimated real estate taxes and insurance premiums shall be $110.00. The escrow agent shall pay from the reserve account when due all real estate taxes, assessments, if any, and insurance premiums. The monthly reserve payments for real estate taxes, assessments, if any, and insurance shall be adjusted as necessary based on any change in the amount of the annual real estate taxes, assessments, if any, and insurance premiums. In the event there is not a sufficient amount in the reserve account to pay any real estate taxes, assessments, if any, or insurance premiums when the same become due, then the Buyer shall immediately pay to the escrow agent such additional sums as necessary for the escrow agent to pay the same as they become due. ENTIRE AGREEMENT. This Contract constitutes the entire agreement of the parties and supercedes all prior agreements and understandings, written or oral. This Contract may be amended only in writing executed by Seller and Buyer. The buyer and seller hereby acknowledge that all contingencies and conditions precedent to this contract have been satisfied or are waived and agree to use this Contract for Real Estate form. ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND CREDIT, OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON LAW. The remainder of this page is intentionally left blank 5 Contract For Real Estate
5844990 Page 6 of 6 10/23/2009 11:44:21 AM IN WITNESS WHEREOF the parties have signed and sealed this Contract the day and year first above written. SETTER BUYER TERRY LEE EDWARDS ANTHONY STACEY M. CA WILLIAM B. EDWARDS 816 E. Tim] erwood Cirde Spokane WA 99208 1740 E. Crown Avenue Spokane, WA 99207 STATE OF WASHINGTON COUNTY OF SPOKANE SS. I certify that I know or have satisfactory evidence that 'TERRY LEE EDWARDS and SUSANN E EDWARD, and WIT.T.IAM B. EDWARDS are the persons who appeared before me, and said persons acknowledged that they signed this instrument and acknowledged it to be their free and voluntary act for the uses and purposes in the instrument. Dated: October.220,4 2009. CL-c\ kql Notary PuFic ir and for the State of Washingto, residing at Spokane Valley. My appointment expires: 4--.ot( STATE OF WASHINGTON ss. COUNTY OF SPOKANE I certify that I know or have satisfactory evidence that ANTHONY J. FICA and STACEY M. FICA are the persons who appeared before me, and said persons acknowledged that they signed this instrument and acknowledged it to be their free and voluntary act for the uses and purposes in the instrument. Dated: October AR1 LA. 2009. Notary Public in1d for the State of Washington, residing at Spokane Valley. My appointment expires: 4 - t - Jolt ott 11111 11111 44,,c'okx 6 Contract For Real Estate a OTARy S % tr.\ Puaut / 1.5