RESIDENTIAL CONDOMINIUM CONTRACT
Agree(s) to Sell and Convey to:
the property described below.
2. PROPERTY AND CONDOMINIUM INSTRUMENTS:
A. Condominium Unit , in Building , of ,
a condominium project, located at
(Address/Zip Code), City of ,
County, Connecticut, described in the Condominium Declaration and Plat and any amendments thereto of record in said County; together with such Unit’s undivided interest in the Common Elements designated by the Declaration, including those areas reserved as Limited Common Elements appurtenant to the Unit and such other rights to use the Common Elements which have been specifically assigned to the Unit in any other manner. Parking areas assigned to the Unit are: . The property includes the following items owned by Seller, if any: curtains and rods, draperies and rods, valances, blinds, window shades, screens, shutters, awnings, wall-to-wall carpeting, mirrors fixed in place, ceiling fans, attic fans, mail boxes, television antennas and satellite dish system with controls and equipment, permanently installed heating and air conditioning units, window air conditioning units, built-in security and fire detection equipment, plumbing and lighting fixtures including chandeliers, water softener, stove, built-in kitchen equipment, garage door openers with controls, built-in cleaning equipment, all swimming pool equipment and maintenance accessories, shrubbery, landscaping, permanently installed outdoor cooking equipment, built-in fireplace screens, artificial fireplace logs and all other personal property owned by Seller and attached to the Unit or located in the Unit and given as collateral for any indebtedness which will remain in effect after closing except the following property which is not included:
All property sold by this contract is called the “Property”.
B. The Declaration, Bylaws and any Rules of the Unit-Owner’s Association are called “The Condominium Instruments”. [hereinafter “Instruments”] (Check one box only):
(__) (1) Buyer has received a copy of the “Instruments”. Buyer is advised to read the Instruments before signing the contract.
(__) (2) Buyer has not received a copy of the Documents. Seller shall deliver the Documents to Buyer within days after the effective date of the contract. Buyer may cancel the contract before the sixth day after Buyer receives the Documents by hand-delivering or mailing written notice of cancellation to Seller by certified United States mail, return receipt requested.
- The Statement of Unit-Owners Association (the Association) required by Act of , hereinafter the “Act,” General Statutes of , is called the “Certificate”. The Certificate must be in a form specified by the Act and containing the information required by the Act or required by the parties. The Certificate must have been prepared within forty (40) days of Seller’s request and must contain, at a minimum, the information required by Section of the of concerning the financial affairs of the Unit-Owner’s Association, restraints on alienability, etc.
(Check one box):
(__) (1) Buyer has received the Certificate.
(__) (2) Buyer has not received the Certificate. Seller shall deliver the Certificate to Buyer within days after the effective date of the contract. Buyer may cancel the contract before the sixth day after the date Buyer receives the Certificate by hand-delivering or mailing written notice of cancellation to Seller by certified United States mail, return receipt requested.
(__) (3) Buyer has received Seller’s affidavit that Seller requested the Certificate information from the Unit-Owner’s Association concerning its financial condition as required by the of , and that the Association did not provide a Certificate or information required in the Certificate. Buyer and Seller agree to waive the requirement to furnish the Certificate.
3. SALES PRICE:
A. Cash portion of Sales Price payable by Buyer at closing……..$
B. Sum of all financing described below (excluding any priva insurance [PMI] premium) ……..………………………..$
C. Sales Price (Sum of A and B) ………………………..……………………$
4. FINANCING: Within days after the effective date of this contract Buyer shall apply for all third party financing or note-holder’s approval of any assumption and make every reasonable effort to obtain financing or assumption approval. Financing, or assumption approval, will be deemed to have been obtained when the lender determines that Buyer has satisfied all of lender’s financial requirements (those items relating to Buyer’s net worth, income and creditworthiness). If financing (including any financed
PMI premium), or assumption approval, is not obtained within days after the effective date hereof, this contract will terminate and the earnest money will be refunded to Buyer. Each note to be executed hereunder must be secured by Seller’s and deed of trust liens.
The portion of Sales Price not payable in cash will be paid as follows: (Check applicable boxes below)
A. THIRD PARTY FINANCING:
(1) This contract is subject to approval for Buyer of a third party first
mortgage loan having a loan-to-value ratio not to exceed % as established
by such third party (excluding any financed PMI premium), due in full in
year(s), with interest not to exceed % per annum for the first year(s)
of the loan. The loan will be with without PMI.
(2) This contract is subject to approval for Buyer of a third party second mortgage loan having a loan-to-value ratio not to exceed % as established by such third party (excluding any financed PMI premium), due in full in
year(s), with interest not to exceed % per annum for the first year(s) of the loan. The loan will be with without PMI.
B. SELLER FINANCING: A promissory note from Buyer to Seller of
$ , bearing % interest per annum, secured by vendor’s and deed of trust liens, in accordance with the terms and conditions set forth in the attached Seller Financing Addendum. If an owner policy of title insurance is furnished, Buyer shall furnish Seller with a mortgagee policy of title insurance.
(1) Buyer shall assume the unpaid principal balance of a first lien promissory
note payable to which unpaid
balance at closing will be $ . The total current monthly payment
including principal, interest and any reserve deposits is $ . Buyer’s
initial payment will be the first payment due after closing.
(2) Buyer shall assume the unpaid principal balance of a second lien promissory note payable to which unpaid balance at closing will be $ .
The total current monthly payment including principal, interest and any reserve
deposits is $ . Buyer’s initial payment will be the first payment due after
Buyer’s assumption of an existing note includes all obligations imposed by the deed of trust securing the note.
If the unpaid principal balance(s) of any assumed loan(s) as of the Closing Date varies from the loan balance(s) stated above, the cash payable at closing Sales Price will be adjusted by the amount of any variance; provided, if the total principal balance of all assumed loans varies in an amount greater than $
at closing, either party may terminate this contract and the earnest money will be refunded to Buyer unless the other party elects to eliminate the excess in the variance by an appropriate adjustment at closing. If the note-holder requires (a)
payment of an assumption fee in excess of $ in D(1) above or $ in D(2) above and Seller declines to pay such excess, or (b) an increase in the interest rate to more than % in D(1) above, or % in D(2) above, or (c) any other modification of the loan documents, Buyer may terminate this contract and the earnest money will be refunded to Buyer. A vendor’s lien and deed of trust to secure assumption will be required which shall automatically be released on execution and delivery of a release by note-holder. If Seller is released from liability on any assumed note, the vendor’s lien and deed of trust to secure assumption will not be required.
NOTICE TO BUYER: The monthly payments, interest rates or other terms of some loans may be adjusted by the lender at or after closing. If you are concerned about the possibility of future adjustments, do not sign the contract without examining the notes and deeds of trust.
NOTICE TO SELLER: Your liability to pay the note assumed by Buyer will continue unless you obtain a release of liability from the lender. If you are concerned about future liability, you should apply for a release of liability from the lender and attach a copy hereto.
D. CREDIT APPROVAL ON ASSUMPTION OR SELLER FINANCING: Within days after the effective date of this contract, Buyer shall deliver to Seller credit report verification of employment, including salary verification of funds on deposit in financial institutions current financial statement to establish Buyer’s creditworthiness for assumption approval or seller financing and
If Buyer’s documentation is not delivered within the specified time, Seller may terminate this contract by notice to Buyer within 7 days after expiration of the time for delivery, and the earnest money will be paid to Seller. If this contract is not so terminated, Seller will be deemed to have accepted Buyer’s credit. If the documentation is timely delivered, and Seller determines in Seller’s sole discretion that Buyer’s credit is unacceptable, Seller may terminate this contract by notice to Buyer within 7 days after expiration of the time for delivery and the earnest money will be refunded to Buyer. If Seller does not so terminate this contract, Seller will be deemed to have accepted Buyer’s credit. Buyer hereby authorizes any credit reporting agency to furnish to Seller at Buyer’s sole expense copies of Buyer’s credit reports.
- 5. EARNEST MONEY: Buyer shall deposit $ as earnest money with
(Address), as escrow agent, upon execution of this contract by both parties. Additional
earnest money of $ must be deposited by Buyer with escrow agent on or
before . If Buyer fails to deposit the earnest money as required by this
contract, Buyer will be in default.
6. TITLE POLICY: Seller shall furnish to Buyer at ! Seller’s ! Buyer’s expense an owner policy of title insurance (the Title Policy) issued by (the Title Company) in the amount of the Sales Price, dated at or after closing, insuring Buyer against loss under the provisions of the Title Policy, subject to the promulgated exclusions (including existing building and zoning ordinances) and the following exceptions:
A. Restrictive covenants common to the platted subdivision in which the Property is located.
B. The standard printed exception for standby fees, taxes and assessments.
C. Liens created as part of the financing described in Paragraph 4.
D. Terms and provisions of the Documents including the assessments and platted easements.
E. Reservations or exceptions otherwise permitted by this contract or as may be approved by Buyer in writing.
F. The standard printed exception as to discrepancies, conflicts, shortages in area or boundary lines, encroachments or protrusions, or overlapping improvements.
G. The standard printed exception as to marital rights.
H. The standard printed exception as to waters, tidelands, beaches, streams, and related matters. Within 20 days after the Title Company receives a copy of this contract, Seller shall furnish to Buyer a commitment for title insurance (the Commitment) and, at Buyer’s expense, legible copies of restrictive covenants and documents evidencing exceptions in the Commitment other than the standard printed exceptions. Seller authorizes the Title Company to mail or hand deliver the Commitment and related Documents to Buyer at Buyer’s address shown below. If the Commitment is not delivered to Buyer within the specified time, the time for delivery will be automatically extended up to 15 days. Buyer will have 5 days after the receipt of the Commitment to object in writing to matters disclosed in the Commitment. Buyer may object to existing building and zoning ordinances and items 6A through 6H above if Buyer determines that any such ordinance or
item prohibits the following use or activity:
Buyer’s failure to object within the time allowed will constitute a waiver of Buyer’s right to object; except that the requirements in Schedule C of the Commitment will not be deemed to have been waived. Seller shall cure the timely objections of Buyer or any third party lender within 15 days after Seller receives the objections and the Closing Date will be extended as necessary. If objections are not cured by the extended Closing Date, this contract will terminate and the earnest money will be refunded to Buyer unless Buyer elects to waive the objections.
NOTICE TO SELLER AND BUYER:
(1) Broker advises Buyer to have an abstract of title covering the Property examined by an attorney of Buyer’s selection, or Buyer should be furnished with or obtain a Title Policy. If a Title Policy is furnished, the Commitment should be promptly reviewed by an attorney of Buyer’s choice due to the time limitations on Buyer’s right to object.
(2) Buyer is advised that the presence of wetlands, toxic substances, including asbestos and wastes or other environmental hazards or the presence of a threatened or endangered species or its habitat may affect Buyer’s intended use of the Property. If Buyer is concerned about these matters, an addendum required by the parties should be used.
(3) Unless expressly prohibited in writing by the parties, Seller may continue to show the Property for sale and to receive, negotiate and accept back-up offers.
(4) Any residential service contract that is purchased in connection with this transaction should be reviewed for the scope of coverage, exclusions and limitations. The purchase of a residential service contract is optional. Similar coverage may be purchased from various companies authorized to do business in Connecticut.
7. PROPERTY CONDITION:
A. INSPECTIONS, ACCESS AND UTILITIES: Buyer may have the Property inspected by an inspector selected by Buyer, licensed by the State of Connecticut or otherwise permitted by law to make such inspections. Seller shall permit access to the Property at reasonable times for inspection, repairs and treatment and for reinsertion after repairs and treatment have been completed. Seller shall pay for turning on utilities for inspection and re-inspection.
B. SELLER’S DISCLOSURE OF LEAD-BASED PAINT AND LEAD-BASED PAINT HAZARDS is required by Federal law for a residential dwelling constructed prior to 1978. An addendum providing such disclosure is is not attached.
C. ACCEPTANCE OF PROPERTY CONDITION: (check one box only):
(1) In addition to any earnest money deposited with escrow agent, Buyer has paid Seller $ (the “Option Fee”) for the unrestricted right to terminate this contract by giving notice of termination to Seller within days after the effective date of this contract. If Buyer gives notice of termination within the time specified, the Option Fee will not be refunded, however, any earnest money will be refunded to Buyer. If Buyer does not give notice of termination within the time specified, Buyer will be deemed to have accepted the Property in its current condition and the Option Fee will will not be credited to the Sales Price at closing.
(2) Buyer accepts the Property in its present condition; provided Seller, at Seller’s
expense, shall complete the following repairs and treatment:
D. LENDER REQUIRED REPAIRS AND TREATMENTS (REPAIRS).Unless otherwise agreed in writing, neither party is obligated to pay for lender required repairs or treatments for wood destroying insects. If the cost of “lender required” repairs exceeds 5% of the Sales Price, Buyer may terminate this contract.
E. COMPLETION OF REPAIRS AND TREATMENT. Unless otherwise agreed by the parties in writing, Seller shall complete all agreed repairs and treatment prior to the Closing Date. Repairs and treatments must be performed by persons who regularly provide such repairs or treatments. At Buyer’s election, any transferable warranties received by Seller with respect to the repairs will be transferred to Buyer at Buyer’s expense. If Seller fails to complete any agreed repairs and treatment prior to the Closing Date, Buyer may do so and the Closing Date will be extended up to 15 days, if necessary, to complete repairs and treatment.
F. REPAIRS TO COMMON ELEMENTS. After Buyer receives all reports of needed repairs to Common Elements and Limited Common Elements that are not the responsibility of Seller, Buyer will have 7 days to deliver notice to Seller that Buyer will terminate the contract unless Buyer receives written confirmation from the Association that such repairs will be made in a reasonable time at no cost to Buyer. If Buyer delivers such notice, Seller will have days after receipt of such notice to cause to be delivered to Buyer written confirmation of the Association’s commitment to repair. If Buyer does not deliver such notice to Seller, Buyer will be deemed to have accepted the Property without such repairs. If required by Buyer and written confirmation of repairs is not delivered to Buyer as required above, Buyer may terminate this contract and the earnest money will be refunded to Buyer.
8. BROKERS’ FEES: All obligations of the parties for payment of brokers’ fees are contained in separate written agreements.
9. CLOSING: The closing of the sale will be on or before, or within 7 days after objections to matters disclosed in the Commitment, or by the survey, have been cured, whichever date is later (the Closing Date). If financing or assumption approval has been obtained pursuant to Paragraph 4, the Closing Date will be extended up to 15 days if necessary to comply with lender’s closing requirements, for example: appraisal, survey, insurance policies, lender-required repairs, closing documents. If either party fails to close this sale by the Closing Date, the non-defaulting party will be entitled to exercise the remedies contained in Paragraph 15. At closing Seller shall furnish tax statements or certificates showing no delinquent taxes and a general warranty deed conveying good and indefeasible title showing no additional exceptions to those permitted in Paragraph 6.
10. POSSESSION: Seller shall deliver possession of the Property to Buyer on in
its present or required repaired condition, ordinary wear and tear excepted. Any possession by Buyer prior to closing or by Seller after closing which is not authorized by a temporary lease form required by the parties will establish a tenancy at sufferance relationship between the parties. Consult your insurance agent prior to change of ownership or possession as insurance coverage may be limited or terminated. The absence of a written lease or appropriate insurance coverage may expose the parties to economic loss.
11. SPECIAL PROVISIONS: (Insert only factual statements and business details applicable
to this sale.) .
12. SETTLEMENT AND OTHER EXPENSES:
A. The following expenses must be paid at or prior to closing:
(1) Appraisal fees will be paid by
(2) The total of loan discount fees may not exceed % of the loan of which Seller shall pay and Buyer shall pay the remainder. The total of any buy-down fees
may not exceed $ which will be paid by .
(3) Seller’s Expenses: Releases of existing liens, including prepayment penalties and recording fees; release of Seller’s loan liability; tax statements or certificates; preparation of deed; one-half of escrow fee; and other expenses stipulated to be paid by Seller under other provisions of this contract.
(4) Buyer’s Expenses: Loan application, origination and commitment fees; loan assumption costs; preparation and recording of deed of trust to secure assumption; lender required expenses incident to new loans, including PMI premium, preparation of loan documents, loan related inspection fee, recording fees, tax service and research fees, warehouse or underwriting fees, copies of restrictions and easements, amortization schedule, premiums for mortgagee title policies and endorsements required by lender, credit reports, photos; required premiums for flood and hazard insurance; required reserve deposit for insurance premiums and ad valorem taxes; interest on all monthly installment notes from date of disbursements to one month prior to dates of first monthly payments; customary Program Loan costs for Buyer; one-half of escrow fee; and other expenses stipulated to be paid by Buyer under other provisions of this contract.
B. Any Association transfer or processing fee will be paid by .
C. If any expense exceeds an amount expressly stated in this contract for such expense to be paid by a party, that party may terminate this contract unless the other party agrees to pay such excess.
13. PRORATIONS: Taxes for the current year, interest, maintenance fees, regular condominium assessments, dues and rents will be prorated through the Closing Date. If taxes for the current year vary from the amount prorated at closing, the parties shall adjust the pro-rations when tax statements for the current year are available. If a loan is assumed and the lender maintains an escrow account, the escrow account must be transferred to Buyer without any deficiency. Buyer shall reimburse Seller for the amount in the transferred account. Cash reserves from regular condominium assessments for deferred maintenance or capital improvements established by the Association will not be credited to Seller. Any special condominium assessment due and unpaid at closing will be the obligation of Seller. Buyer shall pay the premium for a new insurance policy. If taxes are not paid at or prior to closing, Buyer will be obligated to pay taxes for the
14. CASUALTY LOSS: If any part of the Unit which Seller is solely obligated to maintain and repair under the terms of the Declaration is damaged or destroyed by fire or other casualty, Seller shall restore the same to its previous condition as soon as reasonably possible, but in any event by the Closing Date. If Seller is unable to do so without fault, Buyer may terminate this contract and the earnest money will be refunded to Buyer. If any part of the Common Elements or Limited Common Elements adjoining the Unit described in Paragraph 2A is damaged or destroyed by fire or other casualty loss, Buyer will have 7 days from receipt of notice of such casualty loss within which to notify Seller in writing that the contract will be terminated unless Buyer receives written confirmation from the Association that the damaged condition will be restored to its previous condition within a reasonable time at no cost to Buyer. Unless Buyer gives such notice within such time, Buyer will be deemed to have accepted the Property without confirmation of such restoration. Seller will have 7 days from the date of receipt of Buyer’s notice within which to cause to be delivered to Buyer such confirmation. If required by Buyer and written confirmation is not delivered to Buyer as required above, Buyer may terminate this contract and the earnest money will be refunded to Buyer. Seller’s obligations under this paragraph are independent of any obligations of Seller under Paragraph 7.
15. DEFAULT: If Buyer fails to comply with this contract, Buyer will be in default, and Seller may either (a) enforce specific performance, seek such other relief as may be provided by law, or both, or (b) terminate this contract and receive the earnest money as liquidated damages, thereby releasing both parties from this contract. If, due to factors beyond Seller’s control, Seller fails within the time allowed to make any non-casualty repairs or deliver the Commitment, Buyer may either (a) extend the time for performance up to 15 days and the Closing Date will be extended as necessary or (b) terminate this contract as the sole remedy and receive the earnest money. If Seller fails to comply with this contract for any other reason, Seller will be in default and Buyer may either (a) enforce specific performance, seek such other relief as may be provided by law, or both, or (b) terminate this contract and receive the earnest money, thereby releasing both parties from this contract.
16. DISPUTE RESOLUTION: It is the policy of the State of Connecticut to encourage the peaceable resolution of disputes through alternative dispute resolution procedures. The parties are encouraged to use an addendum approved by the parties to submit to mediation disputes which cannot be resolved in good faith through informal discussion.
17. ATTORNEY’S FEES: The prevailing party in any legal proceeding brought under or with respect to the transaction described in this contract is entitled to recover from the non-prevailing party all costs of such proceeding and reasonable attorney’s fees.
18. ESCROW: The earnest money is deposited with escrow agent with the understanding that escrow agent is not (a) a party to this contract and does not have any liability for the performance or nonperformance of any party to this contract, (b) liable for interest on the earnest money and (c) liable for any loss of earnest money caused by the failure of any financial institution in which the earnest money has been deposited unless the financial institution is acting as escrow agent. At closing, the earnest money must be applied first to any cash down payment, then to Buyer’s closing costs and any excess refunded to Buyer. If both parties make written demand for the earnest money, escrow agent may require payment of unpaid expenses incurred on behalf of the parties and a written release of liability of escrow agent from all parties. If one party makes written demand for the earnest money, escrow agent shall give notice of the demand by providing to the other party a copy of the demand. If escrow agent does not receive written objection to the demand from the other party within 30 days after notice to the other party, escrow agent may disburse the earnest money to the party making demand reduced by the amount of unpaid expenses incurred on behalf of the party receiving the earnest money and escrow agent may pay the same to the creditors. If escrow agent complies with the provisions of this paragraph, each party hereby releases escrow agent from all adverse claims related to the disbursal of the earnest money. Escrow agent’s notice to the other party will be effective when deposited in the U. S. Mail, postage prepaid, certified mail, return receipt requested, addressed to the other party at such party’s address shown below. Notice of objection to the demand will be deemed effective upon receipt by escrow agent.
19. REPRESENTATIONS: Seller represents that as of the Closing Date (a) there will be no liens, assessments or security interests against the Property which will not be satisfied out of the sales proceeds, unless securing payment of any loan assumed by Buyer; (b) assumed loan(s) will not be in default; (c) the present amount of the regular condominium assessment is $ which will be current; and (d) Seller has no knowledge of any misrepresentation or errors in the Certificate or any material changes in the information contained therein. If any representation in this contract or the Certificate is untrue on the Closing Date, this contract may be terminated by Buyer and the earnest money will be refunded to Buyer. All representations contained in this contract will survive closing.
20. FEDERAL TAX REQUIREMENT: If Seller is a “foreign person”, as defined by applicable law, or if Seller fails to deliver an affidavit that Seller is not a “foreign person”, then Buyer shall withhold from the sales proceeds an amount sufficient to comply with applicable tax law and deliver the same to the Internal Revenue Service together with appropriate tax forms. IRS regulations require filing written reports if cash in excess of specified amounts is received in the transaction.
21. AGREEMENT OF PARTIES: This contract contains the entire agreement of the parties and cannot be changed except by their written agreement. Addenda, which are a part of
this contract, are (list):
22. CONSULT YOUR ATTORNEY: Real estate licensees cannot give legal advice. This contract is intended to be legally binding. READ IT CAREFULLY. If you do not understand the effect of this contract, consult your attorney BEFORE signing.
Buyer’s Attorney is:
Seller’s Attorney is:
23. NOTICES: All notices from one party to the other must be in writing and are effective when mailed to, hand-delivered at, or transmitted by facsimile machine as follows:
To Buyer at:
Telephone: ( )
Facsimile: ( )
To Seller at:
Telephone: ( )
Facsimile: ( )
EXECUTED the day of , (THE EFFECTIVE DATE).
(BROKER: FILL IN THE DATE OF FINAL ACCEPTANCE.)
BROKER INFORMATION AND RATIFICATION OF FEE
Listing Broker has agreed to pay Other Broker of the total sales
price when Listing Broker’s fee is received. Escrow Agent is authorized and directed to pay Other Broker from Listing Broker’s fee at closing.
Other Broker License No. Listing Broker License No.
Represents: Seller as Listing Broker’s Represents Seller/Buyer as intermediary
Buyer only as Buyer’s agent Seller’s as Seller’s agent
Listing Associate Telephone
Associate Telephone Selling Associate Telephone
Broker Address Broker Address
Telephone Facsimile Telephone Facsimile
Receipt of Contract and $ Earnest Money in the form of
Escrow Agent: Date: , 20
Telephone: ( )
Facsimile: ( )
City State Zip Code
State Specific Condominium Forms
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