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124 STANDARDS FOR REAL ESTATE TRANSACTIONS
<br /> 125 A. TITLE INSURANCE: The Title Commitment shall be Issued by a Florida licensed title insurer agreeing to issue Buyer, upon recording of
<br /> the deed to Buyer, an
<br /> 126 owner's policy of title insurance in the amount of the purchase price, insuring Buyers marketable title to the Real Property,
<br />subject only to matters contained in
<br /> 127 Paragraph VII and those to be discharged by Seller at or before Closing. Marketable title shall be determined according to applicable Idle
<br /> Standards adopted by
<br /> 128 authority of The Florida Bar and in accordance with law. Buyer shall have 5 days from date of receiving the Title Commitment to examine it,
<br /> and N title is found defec-
<br /> 129 tive, notify Seller in writing specifying delect(s) which render title unmarketable. Seiler shall have 30 days from receipt of notice to remove
<br /> the defects, failing which
<br /> 130 Buyer shall, within 5 days after expiration of the 30 day period, deliver written notice to Self either. (1 ) extending the time for a reasonable
<br /> period not to exceed 120
<br /> 131 days within which Seller shall use diligent effort to remove the defects; or (2) requesting a refund of deposit(s) paid which shall be returned
<br /> to Buyer. If Buyer fails to
<br /> 132 so notify Sealer, Buyer shall be deemed to have accepted the title as it then is. Seller shall, if title is found unmarketable, use diligent
<br /> effort to correct defect(s) within
<br /> 133 the time provided. ff, after diligent effort, Seiler Is unable to timely correct the defects, Buyer shatl either waive the defects, or
<br /> receive a refund of deposit(s), thereby
<br /> 134 releasing Buyer and Seller from all further obligations under this Contract. if Seiler is to provide the Title Commitment and it is delivered
<br /> to Buyer less than 5 days prior
<br /> 135 to Closing, Buyer may extend Closing so that Buyer shall have up to 5 days frau date of receipt to examine same in accordance with this
<br /> Standard.
<br /> 136 B. PURCHASE MONEY MORTGAGE; SECURITY AGREEMENT TO SELLER: A purchase money mortgage and mortgage note to Seller shall provide for a
<br /> 137 30 day grace period in the event of default If a first mortgage and a 15 day grace period if a second or lesser mortgage; shall provide
<br /> for right of prepayment
<br /> 138 in whole or in part without penalty; shall permit acceleration in event of transfer of the Real Property; shall require all prior liens
<br /> and encumbrances to be kept
<br /> 139 in good standing; shall forbid modifications of, or future advances under, prior mortgage(s); shall require Buyer to maintain policies
<br /> of insurance containing a
<br /> 140 standard mortgagee clause covering all improvements located on the Real Property against fire and all perils included within
<br /> the term "extended coverage
<br /> 141 endorsements" and such other risks and perils as Seller may reasonably require, in an amount equal to their highest insurable value; and
<br />the mortgage, note
<br /> 142 and security agreement shall be otherwise in form and content required by Seller, but Seller may only require clauses and coverage customarily
<br /> found in mort-
<br /> 143 gages, mortgage notes and security agreements generally utilized by savings and loan institutions or state or national banks located in the
<br /> county wherein the
<br /> 144 Real Property is located. Ail Personal Property and leases being conveyed or assigned will, at Seller's option, be subject to the lien of
<br /> a security agreement evi-
<br /> 145 denced by recorded or filed financing statements or certificates of title. If a balloon mortgage, the final payment will exceed the periodic
<br /> payments thereon.
<br /> 146 C. SURVEY: Buyer, at Buyers expense, within time allowed to deliver evidence of title and to examine same, may have the Real Property
<br /> surveyed and certified
<br /> 147 by a registered Florida surveyor. If the survey discloses encroachments on the Real Property or that improvements located thereon encroach on setback
<br />lines, ease-
<br /> 148 ments, lands of others or violate any restrictions, Contract covenants or applicable governmental regulations, the same shall constitute a title
<br /> defect.
<br /> 149 D. WOOD DESTROYING ORGANISMS: "Wood Destroying Organism" (WDC) shall be deemed to include all wood destroying organisms required to be repot-
<br /> 150 ed under the Florida Structural Pest Control Act, as amended. Buyer, at Buyer's expense, may have the Property inspected by a Florida Certified
<br />Pest Control Operator
<br /> 151 ("Operator") within 20 days after the Effective Date to determine if there is any visible active WDO infestation or visible damage from WDO infestation,
<br /> excluding fences.
<br /> 152 If either or both are found, Buyer may within said 20 days (1 ) have cost of treatment of active infestation estimated by the Operator, (2)
<br /> have all damage inspected
<br /> 153 and cost of repair estimated by an appropriately licensed contractor, and (3) report such cost(s) to Seller in writing. Seller shall cause
<br /> the treatment and repair of all
<br /> 154 WDO damage to be made and pay the costs thereof up to the amount provided in Paragraph Xll(a), if estimated costs exceed that amount,
<br /> Buyer shall have the
<br /> 155 option of canceling this Contract by giving written notice to Seller within 20 days after the Effective Date, or Buyer may elect to
<br /> proceed with the transaction and
<br /> 156 receive a credit at Closing equal to the amount provided in Paragraph Xil(a). ff Buyer's lender requires an updated WDO report, then Buyer
<br /> shall, at Buyers expense,
<br /> 157 have the opportunity to have the Property re-inspected for WDO infestation and have the cost of active infestation or new damage estimated and reported
<br /> to Seller
<br /> 158 in writing at least 10 days prior to Closing, and thereafter, Seiler shall cause such treatment and repair to be made and pay the cast
<br /> thereof; provided, Sellers total
<br /> 159 obligation for treatment and repair costs required under both the first and second inspection shall not exceed the amount provided in Paragraph
<br /> XII (a).
<br /> 160 E. INGRESS AND EGRESS: Seller warrants and represents that there is ingress and egress to the Real Property sufficient for its intended
<br /> use as described
<br /> 161 in Paragraph VII hereof and title to the Real Property is insurable In accordance with Standard A without exception for lack of legal right
<br /> of access.
<br /> 162 F LEASES: Seller shall, at least 10 days before Closing, fumish to Buyer copies of all written leases and estoppel letters from each tenant
<br /> specifying the nature
<br /> 163 and duration of the tenant's occupancy, rental rates, advanced rent and security deposits paid by tenant. if Seller is unable to obtain such
<br /> letter from each ten-
<br /> 164 ant, the same information shall be fumished by Seiler to Buyer within that time period in the form of a Seller's affidavit, and Buyer
<br /> may thereafter contact ten-
<br /> 165 ant to confirm such information. If the terms of the leases differ materially from Seller's representations, Buyer may terminate this Contract
<br /> by delivering written
<br /> 166 notice to Seiler at least 5 days prior to Closing. Seller shall, at Closing, deliver and assign all original leases to Buyer.
<br /> 167 G. LIENS: Seller shall fumish to Buyer at time of Closing an affidavit attesting to the absence, unless otherwise provided for herein, of any
<br /> financing statement,
<br /> 168 claims of lien or potential lienors known to Seller and further attesting that there have been no improvements or repairs to the Real Property
<br /> for 90 days imme-
<br /> 169 diatey preceding date of Closing. ff the Real Property has been improved or repaired within that time, Seller shall deliver releases
<br /> or waivers of construction
<br /> 170 liens executed by all general contractors, subcontractors, suppliers and materialmen in addition to Seller's lien affidavit setting forth the
<br /> names of all such gen-
<br /> 171 eral contractors, subcontractors, suppliers and materialmen, further affirming that all charges for improvements or repairs which could serve
<br /> as a basis for a
<br /> 172 construction lien or a claim for damages have been paid or will be paid at the Closing of this Contract.
<br /> 173 H . PLACE OF CLOSING: Closing shall be held in the county wherein the Real Property is located at the office of the attorney or other
<br /> closing agent ("Closing
<br /> 174 Agent"} designated by the party paying for title insurance, or, if no title insurance, designated by Seller.
<br /> 175 i. TIME: in computing time periods of less than six (6) days, Saturdays, Sundays and state or national legal holidays shall be excluded. Any
<br /> time periods provided
<br /> 176 for herein which shall end on a Saturday, Sunday, or a legal holiday shall extend to 5:00 p.m. of the next business day. Time is of the
<br /> essence in this Contract.
<br /> 177 J. CLOSING DOCUMENTS: Seiler shall furnish the deed, WW
<br /> 178
<br /> 179 K. EXPENSES: Documentary stamps on the deed and recording of corrective instruments shall be paid by Seller. All costs of Buyer's loan
<br /> (whether obtained
<br /> 180 from Seller or third party), including, but not limited to, documentary stamps and intangible tax on the purchase money mortgage and any
<br /> mortgage assumed,
<br /> 181 mortgagee title insurance commitment with related fees, r, deed and financing statements shall be paid by
<br /> 182 Buyer. Unless otherwise provided by law or rider to this Contract, charges for the following related title services, namely title evidence,
<br /> title examination, and
<br /> 183 dosing fee (including preparation of closing statement), shall be paid by the party responsible for furnishing the title evidence in accordance
<br /> with Paragraph V.
<br /> 184 L. PROBATIONS; CREDITS: Taxes, assessments, rent, interest, insurance and other expenses of the Property shall be prorated through the day before
<br /> Closing.
<br /> 185 Buyer shall have the option of taking over existing policies of insurance, if assumable, in which event premiums shall be prorated.
<br /> Cash at Closing shall be
<br /> 186 increased or decreased as may be required by prorations to be made through day prior to Closing, or occupancy, if occupancy occurs before
<br /> Closing. Advance
<br /> 187 rent and security deposits will be credited to Buyer. Escrow deposits held by mortgagee will be credited to Seller. Taxes shall be prorated
<br /> based on the current
<br /> 188 years tax with due allowance made for maximum allowable discount, homestead and other exemptions. If Closing occurs at a date when the
<br />current year's mill-
<br /> 189 age is not fixed and current year's assessment is available, taxes will be prorated based upon such assessment and prior year's millage.
<br />If current year's assess-
<br /> 190 ment is not available, then taxes will be prorated on prior years tax. If there are completed improvements on the Real Property by January
<br /> 1 st of year of Closing,
<br /> 191 which improvements were not in existence on January 1st of prior year, then taxes shall be prorated based upon prior years millage and at an
<br /> equitable assess-
<br /> 192 ment to be agreed upon between the parties; failing which, request shall be made to the County Property Appraiser for an
<br /> informal assessment taking into
<br /> 193 account available exemptions. A tax proration based on an estimate shall, at request of either party, be readjusted upon receipt of current
<br /> year's tax bill .
<br /> 194 M. SPECIAL ASSESSMENT LIENS: Except as set forth in Paragraph A(a) , certified, confirmed and ratified special assessment liens imposed by public
<br /> bod-
<br /> 195 ies as of Closing are to be paid by Seller. Pending liens as of Closing shall be assumed by Buyer. If the improvement has been
<br />substantially completed as of
<br /> 196 Effective Date, any pending lien shall be considered certified, confirmed or ratified and Seller shall, at Closing , be charged an amount equal
<br /> to the last estimate
<br /> 197 or assessment for the improvement by the public body.
<br /> FAR/BAR-7s Rev. 7/04 0 2004 Florida Association of REALToaS° and The Florida Bar All Rights Reserved Page 3 of 4
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