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<br />g STANDARDS FOR REAL ESTATE TRANSACTIONS
<br />720 A. EVIDENCE OF TITLE:(1) An abstract of title prepared or brought current by a reputable and existing abstract firm (if not existing then
<br />121 cefit(led as correct by an existing firm) purporting to be an accurate synopsis of the instruments affecting title to the real property recorded in
<br />122 the public records of the county wherein the real property Is located through Effective Date. It shall commence with the earliest public records,
<br />123 or such later date as may be customary In the county. Upon closing of this Contract, the abstract shall become the property of Buyer, subject to
<br />124 the right of retention thereof by first mortgagee until fully paid. (2) A title insurance commitment issued by a Florida licensed title insurer
<br />125 agreeing to issue Buyer, upon recording of the deed to Buyer, an owner's policy of title Insurance in the amount of the purchase price, insuring
<br />126 Buyer's title to the real property, subject only to liens, encumbrances, exceptions or qualifications provided in this Contract and those to be
<br />I 127 discharged by Seller at or before closing. Seller shall convey marketable title subject only to liens, encumbrances, exceptions or qualifications
<br />128 provided in this Contract. Marketable title shall be determined according to applicable Title Standards adopted by authority of The Florida Bar
<br />129 and in accordance with law. Buyer shall have 5 days from date of receiving evidence of title to examine it. If title Is found defective. Buyer
<br />130 shall within said 5 days notify Seller in writing specifying the defect(s). If defect(s) render title unmarketable. Seller will have 30 day from
<br />131 receipt of notice to remove the defects, failing which Buyer shall, within five (5) days after expiration of the thirty (30) day period, deliver written
<br />132 notice to Seller either: (1) extending the time for a reasonable period not to exceed 120 days within which Seller shall use diligent effort to
<br />133 remove the defects; or (2) requesting a refund of deposit(s) paid which shall be immediately returned to Buyer. If Buyer fails to so notify Seller,
<br />134 Buyer shall be deemed to have accepted the title as It then is. Seller shall, if title Is found unmarketable, use diligent effort to correct defect(s)
<br />135 within the time provided therefor. If Seller is unable to timely correct the defects, Buyer shall either waive the defects, or receive a refund of
<br />136 deposit(s), thereby releasing Buyer and Seller from all further obligations under this Contract. If evidence of title is delivered to Buyer less than
<br />137 5 days prior to closing, Buyer may extend closing dale so that Buyer shall have up to 5 days from date of receipt of evidence of title to examine
<br />138 same in accordance with this Standard.
<br />139 B. PURCHASE MONEY MORTGAGE; SECURITY AGREEMENT TO SELLER: A purchase money mortgage and mortgage note to Seller shall
<br />140 provide for a 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
<br />141 provide for right of prepayment In whole or In part without penalty; shall permit acceleration in event of transfer of the real property; shall require
<br />142 all prior lions and encumbrances to be kept in good standing and forbid modifications of or future advances under prior mortgage(s); shall require
<br />143 Buyer to maintain policies of insurance containing a standard mortgagee clause covering all improvements located on the real property against
<br />144 fire and all perils included within the term "extended coverage endorsements' and such other risks and perils as Seller may reasonably require,
<br />1145 In an amount equal to their highest insurable value; and the mortgage, note and security agreement shall be otherwise in form and content required
<br />146 by Seller; but Seller may only require clauses and coverage customarily found In mortgages, mortgage notes and security agreementsenerally
<br />g
<br />147 utilized by savings and loan Institutions or stale or national banks located in the county wherein the real property is located. All personal
<br />_ 148 property and leases being conveyed or assigned will, at Seller's option, be subject to the lien of a security agreement evidenced by recorded
<br />149 financing statements. If a balloon mortgage, the final payment will exceed the periodic payments thereon.
<br />150 C. SURVEY: Buyer, at Buyer's expense, within time allowed to deliver evidence of title and to examine same, may have the real property surveyed
<br />151 and certified by a registered Florida surveyor. If the survey discloses encroachments on the real property or that improvements located thereon
<br />152 encroach on setback lines. easements, lands of others or violate any restrictions, Contract covenants or applicable governmental regulation, the
<br />153 same shall constitute a title defect.
<br />154 D. TERMITESIWOOD DESTROYING ORGANISMS: Buyer, at Buyer's expense, within the time allowed to deliver evidence of title, may have the
<br />155 Property inspected by a Florida Certified Pest Control Operator ("Operator*) to determine if there is any visible active termite infestation or
<br />156 visible damage from termite infestation, excluding fences. If either or both are found, Buyer shall have 4 days from date of written notice thereof
<br />157 within which to have cost of treatment, if required, estimated by the Operator and all damage Inspected and estimated by a licensed builder or
<br />158 general contractor. Seller shall pay valid costs of treatment and repair of all damage up to the amount provided in Paragraph XIII (a). If
<br />159 estimated costs exceed that amount, Buyer shall have the option of canceling this Contract within 5 days after receipt of contractor's repair
<br />160 estimate by giving written notice to Seller or Buyer may elect to proceed with the transaction, and receive a credit at closing on the amount
<br />161 provided in Paragraph XIII (a). "Termites' shall be deemed to Include all wood destroying organisms required to be reported under the Florida Pest
<br />162 Control Act, as amended.
<br />163 E. INGRESS AND EGRESS: Seller warrants and represents that there Is ingress and egress to the real property sufficient for its Intended use
<br />164 as described in Paragraph VII hereof, title to which is in accordance with Standard A.
<br />185 F. LEASES: Seller shall, not less than 15 days before closing, furnish to Buyer copies of all written leases and estoppel letters from each
<br />166 tenant specifying the nature and duration of the tenant's occupancy. rental rates. advanced rent and security deposit paid by tenant. If Seller is
<br />167 unable to obtain such letter from each tenant, the same information shall be furnished by Seller and Buyer within that time period in the form of a
<br />168 Seller's affidavit, and Buyer may thereafter contact tenant to confirm such Information. Seller shall, at closing, deliver and assign all original
<br />169 leases to Buyer.
<br />170 G. LIENS: Seller shall furnish to Buyer at time of closing an affidavit attesting to the absence, unless otherwise provided for herein, of any
<br />171 financing statement, claims of lien or potential lienors known to Seller and further attesting that there have been no improvements or repairs to
<br />172 the real property for 90 days immediately preceding date of closing. If the real property has been Improved or repaired within that time. Seller
<br />173 shall deliver release$ or waivers of construction liens executed by all general contractors, subcontractors, suppliers and materialmen in addition
<br />174 to Seller's lien affidavit setting forth the names of all such general contractors, subcontractors, suppliers and materialmen, further affirming that
<br />175 all charges for improvements or repairs which could serve as a basis for a construction lien or a claim for damages have been paid or will be paid
<br />176 at the closing of this Contract.
<br />177 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 closing
<br />178 agent ('Closing Agent') designated by Seller.
<br />179 I. TIME: In computing time periods of less than six (6) days, Saturdays, Sundays and stale or national legal holidays shall be excluded. Any time
<br />180 periods provided for herein which shall and on a Saturday, Sunday, or a legal holiday shall extend to 5:00 p.m. of the next business day. Time Is of
<br />lei the essence In this Contract.
<br />182 J. CLOSING DOCUMENTS: Seller shall furnish the deed, bill of sale, construction lien affidavit, owner's possession affidavit, assignments of
<br />183 leases, tenant and mortgagee estoppel letters and corrective instruments. Buyer shall furnish closing statement, mortgage, mortgage note,
<br />184 security agreement and financing statements.
<br />185 K. EXPENSES: Documentary stamps on the deed and recording of corrective Instruments shall be paid by Seller. Documentary stamps and
<br />186 Intangible tax on the purchase money mortgage and any mortgage assumed, mortgagee title insurance commitment with related fees, and
<br />187 recording of purchase money mortgage to Seller, deed and financing statements shall be paid by Buyer. Unless otherwise provided by law or
<br />188 rider to this Contract, charges for the following related title services, namely title or abstract charge, title examination, and settlement
<br />189 and closing fee, shall be paid by the party responsible for furnishing the title evidence In accordance with Paragraph V.
<br />190 L. PRORATIONS; CREDITS: Taxes, assessments, rent, Interest, insurance and other expenses of the Property shall be prorated through the
<br />191 day before closing. Buyer shall have the option of laking over existing policies of Insurance, if assumable, In which event premiums shall be
<br />192 prorated. Cash at closing shall be increased or decreased as may be required by proration s to be made through day prior to closing, or occupancy,
<br />193 if occupancy occurs before closing. Advance rent and security deposits will be credited to Buyer. Escrow deposits held by mortgagee will be
<br />194 credited to Seller. Taxes shall be prorated based on the current year's tax with due allowance made for maximum allowable discount, homestead
<br />195 and other exemptions. If closing occurs at a dale when the current year's millage Is not fixed and current year's assessment is available, taxes
<br />196 will be prorated based upon such assessment and prior year's millage. If current year's assessment Is not available, then taxes will be prorated
<br />197 on prior year's tax. If there are completed improvements on the real properly by January 1st of year of closing, which Improvements were not in
<br />198 existence on January 1st of prior year, then taxes shall be prorated based upon prior year's millage and at an equitable assessment to be agreed
<br />199 upon between the parties; falling which, request shall be made to the County Property Appraiser for an informal assessment taking into account
<br />Zoo available exemptions. A tax proration based on an estimate shall, at request of either party, be readjusted upon receipt of tax bill on condition
<br />201 that a statement to that affect is signed at closing.
<br />Buyer ( ) (__)and Seiler ( _) ( _) acknowledge receipt of a copy of this page.
<br />FARIBAR-5 Rev.8i98 COPYRIGHT 1998 THE FLORIDA BAR AND THE FLORIDA ASSOCIATION OF REALTORSO
<br />This form is licensed for use with Formulator" Forms Software by ISG McAllister Publishing, Inc. 800-338-1027
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