Contract for Sale of Real Estate
This is a legally binding contract. If not understood, seek competent advice.
Date:June 12, 2001
David L. Kesler and Jill L. Kesler, Seller and Andrew J. Baumgartner and Tiffany J. Baumgartner, Buyer, enter
this Contract as of the Contract date defined below. The parties mutually agree as follows:
1.
PROPERTY. Seller will sell and Buyer will buy the following-described real estate described as
follows, to wit: SUBD-ELLIOT'S 2ND ADDN. LOT 105 & W12.5' OF LOT 103
More commonly described as: 402 Elliott, Morrill, KS (Legal description on updated abstract or title insurance
commitment to govern.)
The property to be conveyed Includes all existing improvements on the property and appurtenances, fixtures
and affixed equipment now located thereon, if any, including: fencing and other attached fixtures, trees, bushes,
shrubs and plants, water association rights and telephone rights where applicable. Also includes Shades,
drapery, hardware; Blinds & screens; Smoke alarms; Water heaters; Attached floor coverings; Outbuildings;
Attached TV antennas; All lighting fixtures; All built in heating/cooling & plumbing equipment; Attached
mirrors & shelving.
(Note: To avoid any misunderstanding, the parties are urged to list below as "included" or "excluded" any items
which may be subject to question.)
The following items are also included in the sale:
3 smoke detectors, range, window air conditioner, sump pump, 3 ceiling fans
The following items are excluded from the sale:
Masterguard fire alarms and Masterguard smoke alarms
2.
PURCHASE PRICE. Buyer will pay a purchase price of for the property as follows: TWENTY ONE
THOUSAND DOLLARS ($21,000.00) $500.00 as earnest money at the time of the execution and delivery of
this Contract, which earnest money shall be delivered to MORRILL STATE BANK (Escrow Agent) to be
placed in an escrow account as soon as practicable, but not later than ten (10) banking days in Missouri or five
(5) banking days in Kansas after the date of final acceptance of this Contract by all parties; and, at closing,
Buyer will execute any note and deed of trust or assumption agreement provided for in this Contract and will
pay the balance of the purchase price, if any, in cash or by certified check.
3.
FINANCING (Check A, B or C)
X_____A. This Contract is not subject to Buyer obtaining financing.
_____B. SELLER FINANCING:
Seller agrees to finance a part of the purchase price in the amount of $ _________________________ to be
evidenced by a negotiable purchase money promissory note in a form approved by Seller to be amortized in
equal ____________ installments over a period of __________ years bearing interest at a rate of __________
percent per annum and secured by a __________ deed of trust in a form approved by Seller and covering the
property described above, with the entire unpaid principal and interest to be paid in full at the end of
__________ years. Seller shall have __________ days to investigate Buyer's credit credentials and financial
condition and if unacceptable shall notify Buyer in 'writing, at which time this Contract shall be null and void
and the earnest money shall be returned to Buyer.
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____ C. CONVENTIONAL TERM LOAN:
This Contract is given subject to Buyer's ability to obtain a conventional loan in the amount of $ __________
payable over a period of not less than __________ years and bearing interest at a rate of not more than
__________ percent per annum, with not more than __________ loan points to be paid by Buyer. Seller shall
not be obligated to pay any of the expenses incidental to the obtaining of such loan. Buyer shall apply for the
loan within __________ days after the final acceptance of this Contract or Buyer shall be deemed to have
waived this contingency. In the event Buyer is unable to obtain such loan commitment by
__________________ 20 _____, then this Contract shall be null and void and the earnest money deposit shall
be returned to Buyer.
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CONTRACT CONTINGENCIES (Check A or B)
_____ A. This Contract is not subject to any contingencies, except the title requirements described
below.
X ___ B. CONTRACT TO BE CONTINGENT UPON TERMITE INSPECTION: This Contract shall
be contingent upon a termite inspection of the improvements on the property. Prior to closing, a
licensed exterminator shall inspect the improvements and issue a written inspection report
showing the improvements to be free of active wood-boring insect infestation. If active
infestation or damage is found, Seller shall pay damage of the improvements not to exceed
$_400.00______________________. If cost of treatment/damage repair exceeds the sum agreed
upon herein or if damage from previous infestation is found, Seller shall have _10___ days from
receipt of the report in which to agree to correct the problem prior to closing or to enter into an
agreement in writing with Buyer as to a monetary adjustment in lieu of correction of such
problem. If no written agreement is made within the _10___ days, this Contract shall become
null and void and the earnest money deposit, less any expenses incurred by or on behalf of
Buyer, shall be returned to Buyer. The cost of said inspection shall be paid for by
__BUYER________________. The following improvements shall be excluded from the
inspection:
5.X___ ARBITRATION: This Contract does not provide for arbitration of disputes.
6.
ACCESS TO PROPERTY. Seller will permit inspections of the property by Buyer personally, by thirdparty inspectors selected by Buyer as provided in RES-2020 Addendum B, Contract Contingencies, or for any
inspections subsequently agreed to in writing between Seller and Buyer, or as required by Buyer's lender, upon
reasonable advance notice to Seller; Buyer and Buyer's salesperson may be present during inspections.
7.
TITLE INSURANCE OR ABSTRACT. Seller will deliver to Buyer at least 15 days prior to the date of
closing a commitment to issue an owner's policy of title insurance in the amount of the purchase price of the
property issued by a title insurance company licensed in the state which the property exists. The commitment
will name Buyer as the proposed insured and will provide that a policy will be issued immediately after Seller's
deed to Buyer is placed on record. The cost of the of the owner's title insurance policy will be paid by seller,
and the cost of the mortgagee's title insurance policy, if any, will be paid by Buyer.
8.
TITLE OBJECTIONS. At least 10 days before the closing date, Buyer shall notify Seller in writing of
any objection Buyer has to any title exceptions disclosed by the title insurance commitment or survey or any
matter rendering the title unmarketable. Any such matters to which Buyer does not so object shall be deemed to
be permitted exceptions to the status of Seller's title (the "Permitted Exceptions"). With regard to items to which
Buyer does so object, Seller shall have until closing to cure the objections. If Seller does not cure the objections
by closing, this Contract shall automatically be terminated and the earnest money returned to Buyer unless
Buyer waives the objections on or before closing.
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9.
TITLE STANDARDS. If the title insurance commitment discloses any encumbrance or defect which
causes Seller not have marketable title, such encumbrance or defect will not constitute a valid objection by
Buyer if Seller furnishes the affidavits or other documentation required to remove the encumbrance or defect. It
is understood that any existing liens will be paid out of sale proceeds.
10.
SELLER TO CONVEY BY WARRANTY DEED. If Seller has marketable title to the real property,
Seller will deliver to Buyer at closing a general warranty deed free and clear from all liens and encumbrances,
except the Permitted Exceptions (or a fiduciary deed where applicable).
11.
TAXES, ASSESSMENTS, RENTS. Seller will pay in full all state, county and municipal taxes and
assessments, general and special, which are a lien on the property; except taxes for this calendar year, which
will be prorated as the date of delivery of the deed. If the amount of taxes cannot then be ascertained, proration
will be computed on the amount of general taxes for the preceding calendar year. The rental from the property,
if any, will go to Seller prorated to date of delivery of the deed and to Buyer thereafter. Security deposits and
advance rents, if any, will be paid to Buyer at closing.
12.
PARTIES TO PERFORM PROMPTLY; LIQUIDATED DAMAGES. Because of the commitments of
the parties, time is of the essence of this Contract. If Seller has kept Seller's part of this Contract by furnishing
marketable title and Buyer fails to comply with the terms of this Contract by the scheduled closing date, then
the earnest money will be paid to Seller as liquidated damages, actual damages being difficult if not impossible
to ascertain, and this Contract may or may not be thereafter operative, at the option of Seller. Each party shall
have all remedies available at law or in equity for breach by the other party. Escrow Agent will not be liable for
it until actually in the form of cash in the holder's possession. If Buyer fails to pay additional earnest money
when due (if required) or if the earnest money is to be paid over to Seller as liquidated damages because of
Buyer's failure to comply with this Contract, then the earnest money will go first toward reimbursing expenses
of Seller or listing broker incurred in this transaction, and the balance to be paid one-half (1/2) to Seller and
one-half (1/2) to listing broker in lieu of compensation; provided, however, that the broker will in no event
receive an amount greater than the agreed compensation. If Buyer and Seller have a dispute over the return or
forfeiture of earnest money held in the aforementioned escrow account, the deposit may be held in the escrow
account until Escrow Agent obtains written release from all parties consenting to disposition or until a civil
action is filed to determine disposition, at which time Escrow Agent may pay the funds into court. However, in
the absence of a pending civil action or written release and upon passage of sixty (60) days from the date of the
dispute, Escrow Agent may disburse the earnest money to either party to the transaction based upon a good faith
decision by Escrow Agent that the opposite party has failed to perform as agreed, but this disbursement shall
only be made after the broker has given fifteen (15) days' written notice by certified mail to all parties
concerned at their last known address setting forth Escrow Agent's proposed action.
13.
ARBITRATION, ATTORNEYS' FEES, COURT COSTS. If this Contract does not incorporate binding
arbitration (RES-2030 Addendum C, Arbitration Agreement) or a binding Agreement for Arbitration of
Disputes Addendum is not subsequently entered into by the parties and a suit is filed concerning this property or
Contract against any party or broker or salesperson under this Contract, or out of the sale or actions or
representations of the sale, then the prevailing party in the litigation will be entitled to reasonable attorneys' fees
and court costs. This clause will survive the closing or termination of this Contract and will apply if any
litigation is brought concerning this property or Contract.
14.
PROPERTY TO BE KEPT INSURED. Seller has the risk of loss and will keep the improvements on
the property fully insured until closing. If the improvements on the property are substantially damaged or
destroyed by fire or other casualty prior to closing, then Buyer will have the option of accepting all of the
insurance proceeds and proceeding to close this Contract, or terminating this Contract. If Buyer accepts the
insurance proceeds and closes this Contract and Seller has agreed to finance a part of the purchase price, then
Buyer must use the insurance proceeds to restore the improvements, or Seller, at Seller's election, can terminate
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this Contract. If this Contract is terminated under this paragraph, the earnest money will be returned to Buyer
and the abstract, if any, returned to Seller.
15.
FACSIMILE SIGNATURES. -Facsimile signatures,' as that term is commonly used with reference to
facsimile machines used in transmitting documents, signatures, photocopies, etc., will be and hereby are
declared by all parties to this Contract to be the same as an original signature to this Contract. A facsimile of the
Contract, including the signature portion thereof, will be treated and relied upon by all parties hereto as an
original Contract and an authentic signature with the same legal effect as though the facsimile were an original
document to which a genuine signature has been affixed.
16.
CONSTRUCTION. The terms "Seller" and "Buyer" may be either singular or plural according to
whichever is evidenced by the signatures below. Paragraph captions in this Contract are intended solely for
convenience of reference and will not be deemed to modify, place any restriction upon, or explain provisions of
this Contract. If any date for performance falls on a day other than a business day, such date shall be extended
to the next succeeding business day.
17.
BROKER DISCLAIMER. No broker or salesperson makes any guarantee or representation as to the
title to the property, or discrepancies that a survey may reveal, or the repair or condition of any of the buildings
or improvements on the property.
18.
SELLER DISCLOSURE STATEMENT. A seller property condition disclosure statement is not a
substitute for any inspections that Buyer may wish to obtain. Except as disclosed either in this Contract or any
such seller property condition disclosure statement, neither Seller nor any broker or salesperson has made any
representations not specifically set forth.
(Check one)
_____ A. No seller property condition disclosure statement will be provided by Seller.
X____ B. Buyer has reviewed and signed the attached Real Estate Disclosure Statement.
_____ C. This Contract is contingent on Buyer's review of a Real Estate Disclosure Statement which
Seller will provide to Buyer within one (1) calendar day after the Contract date. Upon receipt
of the seller property condition disclosure statement, Buyer will have two (2) calendar days
to terminate this Contract by giving Seller written notice of the termination. Upon such
notice, the earnest money will be returned to Buyer. Otherwise, this contingency will be
deemed waived by Buyer.
19. FINAL WALK-THROUGH. Buyer or Buyer's salesperson will have the right within seventy-two (72)
hours prior to closing to enter upon the property to conduct a final walk-through inspection of the property for
the purpose of (1) confirming that the general condition of the property is the same as it was on the date Buyer
first signed this Contract, ordinary wear and tear excepted, and (2) if applicable, inspecting those items
previously resolved by written agreement of Buyer and Seller. Seller will arrange, at Seller's expense, to have
all the utilities (if any) turned on during the period specified for this final inspection. Seller warrants that all
mechanical and electrical equipment is (and will at closing be) in reasonable working condition.
20. CLOSING. This Contract will be closed at the office of MORRILL STATE BANK, 21 Main, in Sabetha,
KS, on or before July 10, 2001 or at such other time and place as the parties may mutually agree. This Contract
together with any addenda will constitute escrow instructions to the Escrow Agent. If Seller must take
additional steps to deliver marketable title, then the time of closing may be extended as provided above.
Possession will be delivered to Buyer at closing, subject to the rights of NO ONE, who occupies the premises.
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If there is any charge for conducting the closing, the charge shall be paid half by Buyer and Half by
Seller. Buyer shall pay the cost of recording the deed.
21.
FOREIGN INVESTMENT. Seller represents that Seller is not a foreign person as described in the
Foreign Investment in Real Property Tax Act and agrees to deliver to Buyer an affidavit at closing to that effect
which shall contain Seller's tax identification number.
22.
REAL ESTATE BROKERAGE RELATIONSHIP DISCLOSURE It is understood and agreed that the
broker has made appropriate disclosures to both the buyer and seller and that Barnes Realty is working as a
Transaction Broker on this particular transaction. By signing below, the salespersons confirm making
disclosure of this brokerage relationship to the appropriate parties. (All lines below must be completed.)
Selling Broker's Firm Name:
Listing Broker's Firm Name
Barnes Realty
Barnes Realty
June 12, 2001
June 12, 2001
23.
LEAD-BASED PAINT DISCLOSURE. A Disclosure of Information on Lead-Based Paint and/or
Lead-Based Paint Hazards (DSC-2000) IS _X__ IS NOT ___attached to this Contract and signed by Seller,
Buyer and the listing broker or salesperson.
24.
SPECIAL AGREEMENTS
APPROVED AND ACCEPTED:
XBuyer ___________________________________ Date: JULY 12, 2001
ANDREW J. BAUMGARTNER
SS#
513-803-192
XBuyer ___________________________________ Date: JULY 12, 2001 SS# ______________
TIFFANY J. BAUMGARTNER
This offer will automatically expire at June 19, 2001, if not accepted by Seller or withdrawn by Buyer before
then.
Seller hereby _____ accepts
_____rejects
_____counter offers the foregoing offer set forth in this Contract on the terms specified herein. A
counter offer form which amends the terms of this Contract is attached and incorporated into
this Contract.
Seller's counter offer will automatically expire at ___________.m. on _______________ 20 if not accepted by
Buyer or withdrawn by Seller before then.
X Seller ________________________________ Date ____________ 20___ SS#_________________
DAVID L. KESLER
X Seller ________________________________ Date ____________ 20___ SS#_________________
JILL L. KESLER
Buyer accepts Seller's counter offer. BUYER'S INITIALS _________________
The "Contract date" is the date this document was accepted by the last party to sign. The Contract date
is___________________ 20___[may be filled in after execution and delivery of this Contract by both parties].
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