The Bullet Proof Earnest Money

The Bullet Proof Earnest Money

Presented By

Richard Mario

A R E AS O F P RA C T I C E

Litigation



Building and Premises

Defects



Real Estate Development

Disputes



Zoning and Land Use



Construction Disputes and

Claims



Construction Defect

Litigation



Real Property Boundary

Disputes



Foreclosures



Business Contract Disputes



Probate and Trust Disputes



Professional Licensing

Disputes



Division of Family

Businesses and Real Estate



Family Trust Disputes



Probate Disputes

Business and Real Estate Law

Richard A. Mario

Attorney at Law & Shareholder

Admitted in Oregon & Arizona t 503.620.8900 f 503.620.4878 ram@buckley-law.com

Richard Mario began to represent clients in 1980 and is admitted to both the Arizona & Oregon State

Bars. Richard’s practice has a particular focus on representing clients in all aspects of real estate related disputes in civil litigation and family law. Richard handles all cases from simple to complex litigation with the focus on the clients’ needs. He employs all the tools, from mediation to litigation, to achieve success for his clients. Richard has been the lead counsel on several multi-million dollar construction and development disputes and he engages in frequent land use, road right of way, and title dispute litigation. Richard is also very experienced in trust litigation involving parties and property in several states. Richard’s successes include litigation over the sale of the Lincoln Center Office complex at

Washington Square, a 600 acre residential development in Lincoln City, and a 500 acre mixed use development in Klamath County. Richard also co-founded the firm’s Wine Law Practice Group and volunteers his expertise to the Eola-Amity Hills AVA.

Richard has a wide range of knowledge of the particular challenges faced by buyers, sellers, and brokers in the residential real estate industry. He represents these clients before governmental agencies, in land use disputes, and real estate licensing.

Richard enjoys teaching more than 60 classes a year to real estate agents, title insurance representatives, and other esteemed professionals. He also enjoys teaching skiing at Mt. Hood Meadows as a certified ski instructor.

Richard and his family enjoy skiing, mountain bike riding, and camping.

Suite 200

5300 Meadows Road

Lake Oswego, OR 97035 t 503.620.8900 d 503.906.2220 f 503.620.4878 www.buckley-law.com

The Bullet Proof Earnest Money

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What is your responsibility as an agent?

1.1

Sellers.

1.2

Buyers.

1.3

Do you want to accept more responsibility?

1.4

Referrals. Should you use a list of three?

Earnest money is where your performance responsibility becomes memorialized.

Earnest money is a contract.

3.1

Essential elements of a contract must be met.

3.1.1 Price.

3.1.2 Property description.

3.1.3 Terms and conditions.

3.1.4 Repairs and inspections.

3.1.5 Special conditions.

3.1.6 Sale of property.

3.1.7 Partition of lot.

3.1.8 Subject to seller paying portion of buyer’s costs.

3.1.9 Seller financing.

3.1.10 Buyer providing financing qualifications information.

3.1.11 Seller’s agent to approve list price of purchaser’s property if contingent sale.

3.1.12 Subject to attorney approval, CPA approval and other approval.

3.1.13 1031 Exchange.

3.1.14 Seller’s representations.

3.1.15 “As Is.”

3.1.16 Closing.

3.1.17 Title Insurance.

3.1.18 Additional land sales contract.

3.1.19 Arbitration and mediation.

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3.1.20 Other contingencies.

3.2

Purpose is to demonstrate a meeting of the minds on the elements.

Forms.

4.1

A contract with many of the terms spelled out and to be filled out.

4.2

The more you add or delete the form, the more you accept responsibility to make sure everything is included and correctly stated.

4.3

If you are not comfortable or uncertain with what you are drafting then ask why.

4.4

The more you add or delete the more opportunity there is to argue by what is meant and whether there is a meeting of the minds.

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Sale Agreement #

FINAL AGENCY ACKNOWLEDGMENT

Both Buyer and Seller acknowledge having received the Oregon Real Estate Agency Disclosure Pamphlet, and hereby acknowledge and consent to the following agency relationships in this transaction: (1) _______________________________________________ (Name of Selling Licensee) of (Name of Real Estate Firm) is the agent of (check one) :

Buyer exclusively (“Buyer Agency”). Seller exclusively ("Seller Agency"). Both Buyer and Seller ("Disclosed Limited Agency").

(2) of

(Name of Listing Licensee)

(Name of Real Estate Firm) is the agent of

Seller exclusively ("Seller Agency"). Both Buyer and Seller ("Disclosed Limited Agency").

(check one) :

(3) If both parties are each represented by one or more Licensees in the same Real Estate Firm, and Licensees are supervised by the same principal broker in that Real Estate Firm, Buyer and Seller acknowledge that said principal broker shall become the disclosed limited agent for both

Buyer and Seller as more fully explained in the Disclosed Limited Agency Agreements that have been reviewed and signed by Buyer, Seller and

Licensee(s).

Buyer shall sign this acknowledgment at the time of signing this Agreement before submission to Seller. Seller shall sign this acknowledgment at the time this

Agreement is first submitted to Seller, even if this Agreement will be rejected or a counter offer will be made. Seller's signature to this Final Agency

Acknowledgment shall not constitute acceptance of this Agreement or any terms therein.

Buyer

Buyer

Seller

Seller

Print

Print

Print

Print

RESIDENTIAL REAL ESTATE SALE AGREEMENT

Date

Date

Date

Date

This Agreement is intended to be a legal and binding contract.

If it is not understood, seek competent legal advice before signing. Time is of the essence of this Agreement.

1. DEFINITIONS: All references in this Agreement to "Licensee" and "Firm" shall refer to Buyer’s and Seller’s real estate agents licensed in the

State of Oregon and the respective real estate companies with which they are affiliated. Licensee(s) and Firm(s) identified in the Final Agency

Acknowledgment Section above are not parties to this Agreement, except as may be expressly applicable. Unless otherwise provided herein: (1)

Time calculated in days after the date Buyer and Seller have signed this Agreement shall start on the first full business day after the date of Seller’s signature indicating acceptance of Buyer’s offer or counteroffer, or Buyer’s signature indicating acceptance of Seller’s counteroffer. (2) Written notices required or permitted under this Agreement to be delivered to Buyer or Seller may be delivered to their respective Licensee with the same effect as if delivered to that Buyer or Seller; (3) A “business day” shall mean Monday through Friday, except recognized legal holidays as enumerated in ORS 187.010 and 187.020.

2.1 PRICE/PROPERTY DESCRIPTION: Buyer (print name(s)) offers to purchase from Seller (print name(s)) the following described real property (hereinafter "the Property") situated in the State of Oregon, County of and commonly known or identified as (insert street address, city, zip code, tax identification number, lot/block description, etc.)

(Buyer and Seller agree that if it is not provided herein, a complete legal description as provided by the title insurance company in accordance with

.

Section 5, below, shall, where necessary, be used for purposes of legal identification and conveyance of title.) for the Purchase Price (in U.S. currency) of A $

, on the following terms: Earnest money herein receipted for B $ on___________________, as additional earnest money, the sum of C $ at or before Closing, the balance of down payment D $ at Closing and upon delivery of DEED CONTRACT the balance of the Purchase Price E $

(Lines B, C, D and E should equal Line A)

Buyer Initials _____/_____ Date_____ Seller Initials _____/_____ Date_____

This form has been licensed for use solely by UserName pursuant to a Forms License agreement with Oregon Real Estate Forms, LLC.

LINES WITH THIS SYMBOL REQUIRE A SIGNATURE OF BUYER AND/OR SELLER AND DATE

Copyright Oregon Real Estate Forms, LLC 1998 – 2014 www.orefonline.com

No portion may be reproduced without express permission of Oregon Real Estate Forms, LLC

RESIDENTIAL REAL ESTATE SALE AGREEMENT – Page 1 of 10

OREF 001

Richard Mario ram@buckely-law.com

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Sale Agreement #

2.2 BALANCE OF PURCHASE PRICE. ( Select A or B)

A. This is an all cash transaction. Buyer to provide verification (“Verification”) of readily available funds as follows ( select only one ):

Buyer has attached a copy of the Verification with the submission of this Agreement to Seller or Listing Licensee. Buyer will provide Seller or

Listing Licensee with the Verification within ____ business days (five [5] if not filled in) following mutual acceptance of this Agreement; or Other

( Describe): ___________________________.

Seller may notify Buyer or Buyer’s Licensee, in writing, of Seller's unconditional disapproval of the Verification within ___ business days (five [5] if not filled in) (“Disapproval Period”) following its receipt by Seller or Listing Licensee, in which case, all earnest money deposits shall be promptly refunded and this transaction shall be terminated. If Seller fails to provide Buyer or Selling Licensee with written unconditional disapproval of the Verification by Midnight of the Disapproval Period, Seller shall be deemed to have approved the Verification. If Buyer fails to submit a Verification within a time frame selected above, unless the parties agree otherwise in writing, all earnest money deposits shall be promptly refunded and this transaction shall be terminated.

B. Balance of Purchase Price to be financed as follows (Select only one) : Conventional; FHA; Federal VA;

Other ( Describe ): ____ (hereinafter “Loan

Program”). Buyer agrees to seek financing through a lending institution (“Lender”) participating in the Loan Program identified above.

Pre-Approval Letter. Buyer has attached a copy of a Pre-Approval Letter from Buyer’s Lender or mortgage broker; Buyer does not have a

Pre-Approval Letter at the time of making this offer; Buyer agrees to secure a Pre-Approval Letter as follows:

3.1 FINANCING CONTINGENCIES. If Buyer is financing any portion of the Purchase Price, this transaction is subject to the following financing contingencies: (1) Buyer and the Property to qualify for the loan from Lender; (2 ) Lender’s appraisal shall not be less than the Purchase Price; and,

(3) Other ( Describe ):

All Financing Contingencies are solely for Buyer’s benefit and may be waived by Buyer in writing at any time.

.

3.2 FAILURE OF FINANCING CONTINGENCIES. If Buyer receives actual notification that any Financing Contingencies identified above have failed or otherwise cannot occur, Buyer shall promptly notify Seller, and the parties shall have business days (two [2] if not filled in) following the day of Seller’s receipt of such notification to either (a) Terminate this transaction by signing a Termination Agreement (OREF-057) or such other similar form as may be provided by Escrow; or (b) Reach a written mutual agreement upon such price and terms that will permit this transaction to continue. Neither Seller nor Buyer is required under the preceding provision (b) to reach such agreement. If (a) or (b) fail to occur within the time period identified herein, this transaction shall be automatically terminated and all earnest money shall be promptly refunded to Buyer. Buyer understands that upon termination of this transaction, Seller shall have the right to immediately place the Property back on the market for sale upon any price and terms as Seller determines, in Seller’s sole discretion.

3.3 BUYER REPRESENTATION REGARDING FINANCING: As of the date of signing this Agreement, Buyer makes the following representations to Seller:

(1) Buyer shall apply for a loan not later than business days (three [3] if not filled in) following the date Buyer and Seller have signed this

Agreement, and will thereafter complete all reasonably necessary papers in a timely manner and exercise best efforts (including payment of all application, appraisal and processing fees, where applicable) to obtain the loan;

(2) Buyer shall make a good faith effort to secure the ordering of the Lender’s appraisal no later than expiration of the Inspection Contingency

Period in Section 15.2 of this Agreement, or if the Professional Inspection Addendum (OREF-058) is used, expiration of the Inspection Period.

(3) Buyer currently has liquid and available funds for the earnest money deposit and down payment, sufficient to Close the transaction described herein, and is not relying upon any contingent source of funds (e.g., from loans, gifts, sale or Closing of other property, 401K disbursements, etc.), except as follows ( describe ):

(4) Buyer authorizes Buyer’s Lender or mortgage broker to provide non-confidential information to Listing and Selling Licensees regarding Buyer’s loan application status.

(5) Buyer shall promptly notify Seller or Seller’s Licensee if, after signing this Agreement, Buyer substitutes another lender for any reason.

Notwithstanding the preceding, Buyer shall not be permitted to select a Loan Program different than the one selected in Section 2.2 (B) above, without Seller’s advance written consent.

(6) Buyer agrees to keep Seller promptly informed of all other material non-confidential developments regarding Buyer’s financing and the timing of

Closing.


This form has been licensed for use solely by UserName pursuant to a Forms License Agreement with Oregon Real Estate Forms, LLC.

LINES WITH THIS SYMBOL REQUIRE A SIGNATURE OF BUYER AND/OR SELLER AND DATE




OREF 001


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Sale Agreement #

3.4 INSURANCE: If the Property is located in a designated flood zone, Buyer acknowledges that flood insurance may be required as a condition of the new loan. Buyer is encouraged to promptly verify the availability and cost of property/casualty/flood insurance that will be secured for the

Property.

4. ADDITIONAL PROVISIONS:

For additional provisions, see Addendum .

5. TITLE INSURANCE: Unless otherwise provided herein, this transaction is subject to Buyer's review and approval of a preliminary title report and the recorded covenants, conditions and restrictions ("the Report and CC&Rs") showing the condition of title to the Property. (If not fully understood, Buyer should immediately contact the title insurance company for further information or seek competent legal advice.

Neither Listing nor Selling Licensee is qualified to advise on specific legal or title issues.) Upon signature and acceptance of this

Agreement by Buyer and Seller, Seller will, at Seller's sole expense, promptly order the Report and CC&Rs from an Oregon title insurance company and furnish them to Buyer. Upon receipt of the Report and CC&Rs, Buyer shall have business days (five [5] if not filled in) within which to notify Seller, in writing, of any matters disclosed in the Report and CC&Rs which is/are unacceptable to Buyer ("the Objections"). Buyer's failure to timely object, in writing, to any matters disclosed in the Report and/or CC&Rs shall constitute acceptance of the Report and/or CC&Rs.

However, Buyer’s failure to timely object shall not relieve Seller of the duty to convey marketable title pursuant to Section 6 below. If, within business days (five [5] if not filled in) following receipt of the Objections, if any, Seller fails to remove or correct the matters identified in the

Objections, or does not give written assurances reasonably satisfactory to Buyer that they will be removed or corrected, all earnest money shall be promptly refunded to Buyer and this transaction shall be terminated. This contingency is solely for Buyer’s benefit and may be waived by Buyer in writing. Within thirty (30) days after Closing, Seller shall furnish to Buyer an owner's standard form policy of title insurance insuring marketable title in the Property to Buyer in the amount of the purchase price, free and clear of the Objections and all other title exceptions agreed to be removed as part of this transaction. (Note: This Section 5 provides that Seller will pay for Buyer’s standard owner’s policy of title insurance. In some areas of the country, such a payment might be regarded as a “seller concession.” Under the amended Real Estate Settlement

Procedures Act (“RESPA”), effective on January 1, 2010 there are limitations, regulations and disclosure requirements on “seller concessions” unless the product or service paid by the Seller was one customarily paid by the Seller. In Oregon sellers customarily and routinely pay for their buyer’s standard owner’s policy of title insurance. Accordingly, unless the terms of this Section 5 are modified in writing by Buyer and Seller, the parties acknowledge, agree and so instruct escrow, that in this transaction, Seller’s payment of Buyer’s standard owner’s policy of title insurance is not a “seller concession” under RESPA or any other federal or state law.)

6. DEED: Seller shall convey marketable title to the Property by statutory warranty deed (or good and sufficient personal representative’s or trustee's or similar legal fiduciary’s deed, where applicable) free and clear of all liens of record, except property taxes which are a lien but not yet payable, zoning ordinances, building and use restrictions, reservations in Federal patents, easements of record which affect the Property, covenants, conditions and restrictions of record, and those matters accepted by Buyer pursuant to Section 5 above.

7. SELLER-CARRIED FINANCING (E.G. LAND SALE CONTRACT/TRUST DEED/MORTGAGE/OPTION AGREEMENTS, RENT-TO-

OWN, ETC.): Note: State and federal laws and regulations provide that under certain circumstances, offering or negotiating the terms of sellercarried financing must be performed by a Mortgage Loan Originator (see, ORS86A.200 (4)), and the terms of such financing may have to comply with certain consumer protection disclosures rules. Your real estate licensee is not qualified to provide these services or to advise you in this regard. Legal advice is strongly recommended. If this transaction is to include a land sale contract, trust deed, mortgage or option agreement between Buyer and Seller, the parties shall agree upon the terms and conditions of such document not later than

_____

business days (ten [10] if not filled in) after the date Buyer and Seller have signed and accepted this Sale Agreement. Upon failure of Buyer and Seller to reach agreement as to the terms and conditions of the document within said time period, this transaction shall automatically terminate, all parties shall cooperate in signing such documentation reasonably necessary to effect a termination of this transaction and a refund of all deposits, if any, to Buyer. Caveat:

The additional documents identified in this Section 7 can have legally binding consequences, and Buyer and Seller are strongly encouraged to secure competent legal advice before entering into such agreements. If Escrow (as defined in Section 17) is instructed to prepare the note and trust deed or mortgage to be used in this transaction, state statute requires that Buyer and Seller receive from

Escrow, at least three (3) days prior to Closing (as defined in Section 18), a statutory notice and a copy of the proposed documents. This requirement cannot be waived by Buyer or Seller without the approval of both of their respective Oregon-licensed attorneys.

8. FIXTURES: All fixtures (including remote controls and essential related equipment) are to be left upon the Property. Fixtures shall include but not be limited to: Built-in appliances; attached floor coverings; drapery rods and curtain rods; window and door screens; storm doors and windows; system fixtures (irrigation, plumbing, ventilating, cooling and heating); water heaters; attached electric light and bathroom fixtures; light bulbs; fluorescent lamps; window blinds; awnings; fences; all planted shrubs, plants and trees; EXCEPT:







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Sale Agreement #

9. PERSONAL PROPERTY: Only the following personal property, in " AS-IS " condition and at no stated value is included:

_______________________

10. ALARM SYSTEM: NONE OWNED LEASED. If leased, Buyer will will not assume the lease at Closing.

11. WOODSTOVE/FIREPLACE INSERT: Does the Property contain a woodstove or fireplace insert? Yes No

Is the woodstove or fireplace insert certified? Yes No Unknown If “No” or “Unknown,” Seller to provide Buyer with OREF-046

Woodstove/Fireplace Insert Addendum.

12. SELLER REPRESENTATIONS: Subject to other written disclosures made by Seller as a part of this transaction, Seller makes the following representations to Buyer:

(1) The primary dwelling is connected to (check all that apply) : a public sewer system; an on-site sewage system; a public water system; a private well; other (e.g., surface springs, cistern, etc.).

(2) At the earlier of possession or Closing Date, the dwelling will have one or more operating smoke alarms, smoke detectors and carbon monoxide detectors as required by law (See http://www.oregon.gov/OSP/SFM/ ).

(3) Seller has no knowledge of any hazardous substances in or about the Property other than substances (if any) contained in appliances and equipment. Buyer acknowledges that asbestos commonly exists in insulation, ceilings, floor coverings and other areas in residential housing and may exist in the Property.

(4) Seller knows of no material defects in or about the Property.

(5) All electrical wiring, heating, cooling, plumbing and irrigation equipment and systems and the balance of the Property, including the yard, will be in substantially its present condition at the time Buyer is entitled to possession.

(6) Seller has no notice of any liens or assessments to be levied against the Property.

(7) Seller has no notice from any governmental agency of any violation of law relating to the Property.

(8) Seller is not a “foreign person” under the Foreign Investment in Real Property Tax Act ("FIRPTA") as defined in this Agreement.

(9) Seller knows of no material discrepancies between visible lines of possession and use (such as existing fences, hedges, landscaping, structures, driveways, and other such improvements) currently existing on the Property offered for sale and the legal description of the

Property.

(10) Seller will keep the Property fully insured through Closing.

Seller agrees to promptly notify Buyer if, prior to Closing, Seller receives actual notice of any event or condition which could result in making any previously disclosed material information relating to the Property substantially misleading or incorrect. These representations are made to the best of Seller's knowledge. Seller may have made no investigations. Exceptions to items (1) through (10) are:

Buyer acknowledges that the above representations are not warranties regarding the condition of the Property and are not a substitute for, nor in lieu of, Buyer’s own responsibility to conduct a thorough and complete independent investigation, including the use of professionals, where appropriate, regarding all material matters bearing on the condition of the Property, its value and its suitability for

Buyer’s intended use. Neither the Listing nor Selling Licensees shall be responsible for conducting any inspection or investigation of any aspects of the Property.

13. "AS-IS": Except for Seller's express written agreements and written representations contained herein, and Seller's Property

Disclosure, if any, Buyer is purchasing the Property "AS-IS," in its present condition and with all defects apparent or not apparent. This provision shall not be construed to limit Buyer’s right to implied new home warranties, if any, that may otherwise exist under Oregon law.

14. PRIVATE WELL: Does the Property contain a Private Well ? Yes No If the property contains a private well, the OREF-082 Private

Well Addendum will be attached to this Sale Agreement.

I N S P E C T I O N S : ( C H E C K O N L Y O N E B O X )

15.1 ENVRONMENTAL HEALTH CONDITIONS: The following list identifies some, but not all, environmental conditions that may be found in and around all real property that may affect health: Asbestos, carbon monoxide, electric and magnetic fields, formaldehyde, lead and other contaminants in drinking water and well water, lead based paint, mold and mildew, radon, and leaking underground storage tanks. If Buyer has any concerns about these conditions or others, Buyer is encouraged to secure the services of a professional inspector, consultant, or health expert, for information and guidance. Neither the listing nor selling licensees are experts in environmental health hazards or conditions. For additional







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Sale Agreement # information, go to the Oregon Association of Realtors®’ Buyer advisory at: http://www.oregonrealtors.org

and the Oregon Public Health Division at http://public.health.oregon.gov/Pages/Homes.aspx

15.2

INSPECTIONS: Buyer understands that it is advisable to have a complete inspection of the Property by qualified professional(s) relating to such matters as structural condition, soil condition/compaction/stability, environmental issues, survey, zoning, operating systems, and suitability for

Buyer’s intended purpose. Neither Listing nor Selling Licensee is qualified to conduct such inspections and shall not be responsible to do so. For further details, Buyer is encouraged to review the Buyer Advisory at “http://www.oregonrealtors.org”.

PROFESSIONAL INSPECTIONS: At Buyer's expense, Buyer may have the Property and all elements and systems thereof inspected by one or more professionals of Buyer's choice. Provided, however, Buyer must specifically identify in this Agreement any desired inspections which may include testing or removal of any portion of the Property including radon and mold. Buyer understands that Buyer is responsible for the restoration of the Property following any inspection(s)/test(s) performed by Buyer or on Buyer’s behalf. Buyer shall have

_____

business days

(ten [10] if not filled in), after the date Buyer and Seller have signed this Agreement (hereinafter "the Inspection Period"), in which to complete all inspections and negotiations with Seller regarding any matters disclosed in any inspection report. However, during the Inspection Period, Seller shall not be required to modify any terms of this Agreement already reached with Buyer. Unless a written and signed modification is reached, at any time during the Inspection Period, Buyer may notify Seller or Listing Licensee, in writing, of Buyer's unconditional disapproval of the Property based on any inspection report(s), in which case, all earnest money deposits shall be promptly refunded and this transaction shall be terminated. Buyer shall promptly provide a copy of all reports to Seller only if requested by Seller . If Buyer fails to provide Seller or Listing Licensee with written unconditional disapproval of any inspection report(s) by Midnight of the final day of the Inspection Period, Buyer shall be deemed to have accepted the condition of the Property. Note that if, prior to expiration of the Inspection Period, written agreement is reached with

Seller regarding ALL Buyer’s requested repairs, the Inspection Period shall automatically terminate, unless the parties agree otherwise in writing.

ALTERNATIVE INSPECTION PROCEDURES: OREF-058 PROFESSIONAL INSPECTION ADDENDUM OR OTHER INSPECTION

ADDENDUM is attached to this Agreement .

BUYER'S WAIVER OF INSPECTION CONTINGENCY: Buyer represents to Seller and all Licensees and Firms that Buyer is fully satisfied with the condition of the Property and all elements and systems thereof and knowingly and voluntarily elects to waive the right to have any inspections performed as a contingency to the Closing of the transaction. Buyer’s election to waive the right of inspection is solely Buyer’s decision and at Buyer’s own risk.

16. LEAD-BASED PAINT CONTINGENCY PERIOD: If the Property was constructed before 1978, a Lead-Based Paint Disclosure

Addendum (hereinafter "the Disclosure Addendum") shall be promptly signed by Seller, Buyer and Listing and Selling Licensees, and become a part of this Agreement. Buyer shall also be provided with a pamphlet entitled “Protect Your Family From Lead in Your Home.”

Buyer shall have

_____

calendar days (ten [10] unless a greater number is filled in) within which to conduct a lead-based paint assessment or inspection (hereinafter referred to as "the Lead-Based Paint Contingency Period"), which shall commence immediately when Buyer and Seller sign the Disclosure Addendum. Unless the opportunity to conduct a risk assessment or inspection is expressly waived in the Disclosure Addendum, Buyer may, in writing, unconditionally cancel this transaction during the Lead-Based Paint

Contingency Period and receive a prompt return of all earnest money deposits. Buyer understands that the failure to give timely written notice of cancellation prior to Midnight on the last day of the Lead-Based Paint Contingency Period shall constitute acceptance of the condition of the Property as it relates to the presence of lead-based paint or lead-based paint hazards.

OREF-021 Lead-Based Paint Disclosure Addendum is attached to this Agreement.

17. ESCROW: This transaction shall be Closed at ("Escrow"), a neutral escrow located in the State of Oregon. Costs of Escrow shall be shared equally between Buyer and Seller, unless Buyer is financing through Federal VA, in which case Seller shall pay all escrow costs.

Unless otherwise provided herein, the parties agree as follows: Seller authorizes Listing Firm to order a preliminary title report and owner’s title policy at Seller’s expense and further authorizes Escrow to pay out of the cash proceeds of sale the expense of furnishing such policy, Seller’s recording fees, Seller’s Closing costs and any encumbrances on the Property payable by Seller on or before Closing. Buyer shall deposit with

Escrow sufficient funds necessary to pay Buyer’s recording fees, Buyer’s Closing costs, and lender’s fees, if any. Real estate fees, commissions or other compensation for professional real estate services provided by Listing and/or Selling Firms shall be paid at closing in accordance with the listing agreement, buyer service agreement or other written agreement for compensation.

18. CLOSING: Closing shall occur on a date mutually agreed upon by Buyer and Seller, but in no event later than

____________ ,

(“the Closing Deadline”). The terms "Closed", "Closing" or "Closing Date" shall mean when the deed or contract is recorded and funds are available to Seller. Buyer and Seller acknowledge that for Closing to occur by the Closing Deadline, it may be necessary to execute documents and deposit funds in Escrow prior to that date. Caveat : Section 7 above requires three (3) days prior to the Closing Deadline if Escrow is to prepare a note and a deed of trust or mortgage.







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Sale Agreement #

19. POSSESSION: Seller shall remove all personal property (including trash and debris) that is not a part of this transaction, and deliver possession of the Property to Buyer (select one) :

(1) by 5:00 p.m. on Closing;

(2) by _________________ a.m. p.m.

______

days after Closing;

(3) by

______________

a.m. p.m. on the

___________

day of

_____________,____________

.

If a tenant is currently in possession of the Property (check one) : Buyer will accept tenant at closing; Seller shall have full responsibility for removal of tenant prior to closing.

20. PRORATIONS: Prorates for rents, current year's taxes, interest on assumed obligations, and other prepaid expenses attributable to the

Property shall be as of: (check one) the Closing Date; date Buyer is entitled to possession; or

.

21. SELLER POSSESSION AFTER CLOSING: In the event that Buyer and Seller have agreed that Seller will deliver possession after Closing,

Seller shall pay as consideration $

____________

per day for each day after Closing that Seller is to remain in possession of the Property. Such payment shall be made by Seller through Escrow at the time of Closing and no landlord-tenant relationship shall be created thereby, so long as

Seller's possession does not exceed 90 days after the date of Closing.

OREF-054 Agreement to Occupy After Closing, or Addendum

____________

is attached to this Agreement.

22. UTILITIES: Seller shall pay all utility bills accrued to date Buyer is entitled to possession. Buyer shall pay Seller for heating fuel then on premises, at Seller's supplier's rate on the possession date. Payment shall be handled between Buyer and Seller outside of Escrow.

23. HOME WARRANTIES: Home warranty plans may be available to help cover homeowner costs to repair/replace certain home systems and appliances. (See specific plan for details.) Will a plan be purchased for Buyer as a part of this transaction? Yes No

If yes, identify plan and cost: __________________________________________ $ ____________To be paid at Closing by: Buyer Seller

24. ESCROW DEPOSIT: Escrow is hereby instructed by Buyer and Seller as follows: (1) Upon your receipt of a copy of this Agreement marked

"rejected" by Seller or upon Listing Firm's written advice that the offer is "rejected" by Seller, you are to refund all earnest money to Buyer. (2) Upon your receipt of a copy of this Agreement signed by Buyer and Seller, set up an escrow account and proceed with Closing in accordance with the terms of this Agreement. If you determine that the transaction cannot be Closed for any reason (whether or not there is then a dispute between

Buyer and Seller), subject only to Section 40 below, you are to hold all earnest money deposits until you receive written instructions from Buyer and

Seller, or a final ruling from a court or arbitrator, as to disposition of such deposits.

25. EARNEST MONEY PAYMENT/REFUND: If (1) Seller does not approve this Agreement; or (2) Seller signs and accepts this Agreement but fails to furnish marketable title; or (3) Seller fails to complete this transaction in accordance with this Agreement, or perform any other act as herein provided; or (4) any condition which Buyer has made an express contingency in this Agreement (and has not been otherwise waived) fails through no fault of Buyer, then all earnest money shall be promptly refunded to Buyer. However, acceptance by Buyer of the refund shall not constitute a waiver of other legal remedies available to Buyer. If Seller signs and accepts this Agreement and title is marketable; and (1) Buyer has misrepresented Buyer's financial status; or (2) Buyer's bank does not pay, when presented, any check given as earnest money; or (3) Buyer fails to redeem, when due, any note given as earnest money; or (4) Buyer fails to complete this transaction in accordance with this Agreement, or perform any other act as herein provided, then all earnest money paid or agreed to be paid shall be paid to Seller either as liquidated damages or as otherwise allowed under Oregon law, and this transaction shall be terminated.

It is the intention of the parties that Seller’s sole remedy against

Buyer for Buyer’s failure to Close this transaction shall be limited to the amount of earnest money paid or agreed to be paid herein.

26. BINDING EFFECT/CONSENT: This Agreement is binding upon the heirs, personal representatives, successors and assigns of Buyer and

Seller. However, Buyer's rights under this Agreement or in the Property are not assignable without prior written consent of Seller.

27.1 SELLER ADVISORY: OREGON STATE TAX WITHHOLDING OBLIGATIONS. Subject to certain exceptions, Escrow is required to withhold a portion of Seller’s proceeds if they are a non-resident individual or corporation as defined under Oregon law. Buyer and Seller agree to execute and deliver, as appropriate, any instrument, affidavit or statement, and to perform any acts reasonable or necessary to carry out the provisions of Oregon law .

27.2 SELLER/BUYER ADVISORY: FIRPTA TAX WITHHOLDING OBLIGATIONS Seller is advised that upon Closing, Federal law, known as the

Foreign Investment in Real Property Tax Act ("FIRPTA"), allows an escrow company, if they agree, to withhold a portion of Seller’s proceeds if the real property is located within the United States and Seller is a "foreign person." A "foreign person" includes a non-resident alien individual, foreign corporation, foreign partnership, foreign trust and foreign estate .The amount deducted from Seller’s proceeds is ten percent (10%) of the gross sales price and is required to be delivered over to the Internal Revenue Service (“IRS”) within twenty (20) days of the closing of the transaction. Buyer may become responsible for payment if FIRPTA applies and Escrow is not instructed to withhold the funds. FIRPTA will not apply to this transaction so long as: (a) The sale price is

$300,000 or less; (b) The Property is to be used by Buyer as a residence; and, (c) Buyer is an individual. Where applicable, Buyer and Seller agree to execute and deliver, as appropriate, any instrument, affidavit or statement, reasonably requested by Escrow to carry out the provisions of FIRPTA. N OTE : A T S ECTION

12 OF THIS A GREEMENT , S ELLER REPRESENTS THAT S ELLER IS NOT A “ FOREIGN PERSON ” ( HEREINAFTER “S ELLER ’ S N ON -FIRPTA S TATUS ”).

I F S ELLER IS

UNSURE , S ELLER SHOULD FIRST CONFER WITH S ELLER ’ S TAX COUNSEL OR CPA BEFORE ENTERING INTO THIS TRANSACTION .

I N SUBMITTING THIS OFFER , B UYER

REPRESENTS THAT B UYER HAS NO KNOWLEDGE , INFORMATION , OR BELIEF THAT S ELLER IS A FOREIGN PERSON OR THAT THIS TRANSACTION IS SUBJECT TO FIRPTA.







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Sale Agreement #

S ELLER ACKNOWLEDGES THAT B UYER , L ISTING AND S ELLING L ICENSEES , THEIR RESPECTIVE F IRMS , AND E SCROW , ITS AGENTS , EMPLOYEES AND

REPRESENTATIVES , SHALL HAVE THE ABSOLUTE RIGHT TO RELY UPON S ELLER ’ S REPRESENTATION OF S ELLER ’ S N ON -FIRPTA S TATUS AT S ECTION 12, ABOVE .

T HIS RIGHT OF RELIANCE SHALL CONTINUE THROUGH THE C LOSING D ATE AND THEREAFTER , UNLESS S ELLER HAS DISCLOSED OTHERWISE IN A WRITTEN COUNTER -

OFFER OR A DDENDUM TO THIS S ALE A GREEMENT .

I F AT ANY TIME DURING THIS TRANSACTION , IT IS DETERMINED THAT S ELLER ’ S REPRESENTATION OF S ELLER ’ S

N ON -FIRPTA S TATUS WAS INCORRECT , FOR ANY REASON , S ELLER AND B UYER HEREBY APPOINT AND INSTRUCT E SCROW TO ACT AS THE Q UALIFIED S UBSTITUTE

FOR B UYER AS DEFINED BY THE IRS, FOR PURPOSES OF PREPARING THE NECESSARY PAPERWORK , WITHHOLDING THE NECESSARY FUNDS , AND REMITTING THE

SAME TO THE IRS.

I F FOR ANY REASON , ESCROW DECLINES TO ACT AS A Q UALIFIED S UBSTITUTE , ESCROW IS REQUESTED TO PROMPTLY NOTIFY S ELLER AND

B UYER IN A TIMELY MANNER SO THEY MAY MAKE OTHER ARRANGEMENTS PRIOR TO THE SCHEDULED CLOSING .

S ELLER AND B UYER ACKNOWLEDGE THAT IF

FIRPTA APPLIES TO THIS TRANSACTION , E SCROW ’ S ROLE AS A Q UALIFIED S UBSTITUTE MAY RESULT IN A DELAY IN CLOSING THIS TRANSACTION .

U NLESS

OTHERWISE PROVIDED IN THIS S ALE A GREEMENT OR ANY SUBSEQUENT SIGNED WRITTEN AGREEMENT BETWEEN S ELLER AND B UYER , CONFIRMATION OF S ELLER ’ S

N ON -FIRPTA S TATUS IS NOT A CONTINGENCY IN THIS TRANSACTION .

28. APPROVED USES: “THE PROPERTY DESCRIBED IN THIS INSTRUMENT MAY NOT BE WITHIN A FIRE PROTECTION DISTRICT

PROTECTING STRUCTURES. THE PROPERTY IS SUBJECT TO LAND USE LAWS AND REGULATIONS THAT, IN FARM OR FOREST ZONES, MAY

NOT AUTHORIZE CONSTRUCTION OR SITING OF A RESIDENCE AND THAT LIMIT LAWSUITS AGAINST FARMING OR FOREST PRACTICES, AS

DEFINED IN ORS 30.930, IN ALL ZONES. BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON TRANSFERRING FEE TITLE

SHOULD INQUIRE ABOUT THE PERSON’S RIGHTS, IF ANY, UNDER ORS 195.300, 195.301 AND 195.305 TO 195.336 AND SECTIONS 5 TO 11,

CHAPTER 424, OREGON LAWS 2007, SECTIONS 2 TO 9 AND 17, CHAPTER 855, OREGON LAWS 2009, AND SECTIONS 2 TO 7, CHAPTER 8,

OREGON LAWS 2010. BEFORE SIGNING OR ACCEPTING THIS INSTRUMENT, THE PERSON ACQUIRING FREE TITLE TO THE PROPERTY

SHOUD CHECK WITH THE APPROPRATE CITY OR COUNTY PLANNING DEPARTMENT TO VERIFY THAT THE UNIT OF LAND BEING

TRANSFERRED IS A LAWFULLY ESTABLISHED LOT OR PARCEL, AS DEFINED IN ORS 92.010 OR 215.010, TO VERIFY THE APPROVED USES OF

THE LOT OR PARCEL, TO VERIFY THE EXISTENCE OF FIRE PROTECTION FOR STRUCTURES AND TO INQUIRE ABOUT THE RIGHTS OF

NEIGHBORING PROPERTY OWNERS, IF ANY, UNDER ORS 195.300,195.301 AND 195.305 TO 195.336 AND SECTIONS 5 TO 11, CHAPTER 424,

OREGON LAWS 2007, SECTIONS 2 TO 9 AND 17, CHAPTER 855, OREGON LAWS 2009, AND SECTIONS 2 TO 7, CHAPTER 8, OREGON LAWS

2010.”

29. IRC 1031 EXCHANGE: In the event Buyer or Seller elects to complete an IRC 1031 exchange in this transaction, the other party agrees to cooperate with them and the accommodator, if any, in a manner necessary to complete the exchange, so long as it will not delay the Close of escrow or cause additional expense or liability to the cooperating party. Unless otherwise provided herein, this provision shall not become a contingency to the Closing of this transaction.

30.1 LEVY OF ADDITIONAL PROPERTY TAXES: The Property: (check one) is is not specially assessed for property taxes (e.g., farm, forest or other) in a way which may result in levy of additional taxes in the future. If it is specially assessed, Seller represents that the Property is current as to income or other conditions required to preserve its deferred tax status. If, as a result of Buyer's actions or the Closing of this transaction, the Property either is disqualified from special use assessment or loses its deferred property tax status, unless otherwise specifically provided in this Agreement, Buyer shall be responsible for and shall pay when due, any deferred and/or additional taxes and interest which may be levied against the Property and shall hold Seller completely harmless therefrom. However, if as a result of Seller's actions prior to Closing, the

Property either is disqualified from its entitlement to special use assessment or loses its deferred property tax status, Buyer may, at Buyer’s sole option, promptly terminate this transaction and receive a refund of all deposits paid by Buyer in anticipation of Closing; or Close this transaction and hold Seller responsible to pay into Escrow all deferred and/or additional taxes and interest which may be levied or recaptured against the Property and hold Buyer completely harmless therefrom. The preceding shall not be construed to limit Buyer’s or Seller’s available remedies or damages arising from a breach of this Section 30.1.

30.2 HISTORIC PROPERTY DESIGNATION: If the Property is or may be subject to a Historic Property local ordinance or is subject to or may qualify for the Historic Property Special Property Tax Assessment under ORS 358.475 to 358.565, Seller shall provide OREF-045 Historic

Property Addendum.

D I S P U T E R E S O L U T I O N I N V O L V I N G B U Y E R A N D S E L L E R O N L Y

31. DISPUTE RESOLUTION BETWEEN BUYER AND SELLER: Buyer and Seller agree that all claims, controversies and disputes between them, including those for rescission (hereinafter collectively referred to as "Claims"), relating directly or indirectly to this transaction, shall be resolved in accordance with the procedures set forth herein, which shall expressly survive Closing or earlier termination of this Agreement.

Provided, however, the following matters shall not constitute Claims: (1) any proceeding to collect, interpret or enforce any mortgage, trust deed, land sale contract or recorded construction lien; or (2) a forcible entry and detainer action (eviction). The filing in court for the issuance of any provisional process or similar remedy described in the Oregon or Federal Rules of Civil Procedure shall not constitute a waiver of the right or duty to utilize the dispute resolution procedures specified herein. In the event of any suit, action or arbitration relating to the enforcement or interpretation of this Agreement, the matter shall be governed exclusively by Oregon law, and venue shall be placed in the State of Oregon for all purposes.

32. SMALL CLAIMS BETWEEN BUYER AND SELLER: Notwithstanding the following Sections, Buyer and Seller agree that all Claims that are within the jurisdiction of the Small Claims Court shall be brought and decided there, in lieu of mediation, arbitration or litigation in any other forum.







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Sale Agreement #

33. MEDIATION BETWEEN BUYER AND SELLER: If Buyer or Seller were represented in this transaction by a Licensee whose principal broker is a member of the National Association of REALTORS

®

, all Claims shall be submitted to mediation in accordance with the procedures of the

Home Seller/Home Buyer Dispute Resolution System of the National Association of REALTORS

®

, or other organization-adopted mediation program (collectively "the System"). Provided, however, if Licensee's principal broker is not a member of the National Association of REALTORS

® or the System is not available through the principal broker's Association of REALTORS

®

, then all Claims shall be submitted to mediation either through: (1) the special mediation program administered by Arbitration Service of Portland (“ASP”), or (2) any other impartial private mediator(s) or program(s) so long as such services are available in the county where the Property is located, as selected by the party first filing for mediation.

34. ARBITRATION BETWEEN BUYER AND SELLER: All Claims that have not been resolved by mediation, or otherwise, shall be submitted to final and binding private arbitration in accordance with Oregon laws. Filing for arbitration shall be treated the same as filing in court for purposes of meeting any applicable statutes of limitation or for purposes of filing a lis pendens. Buyer or Seller may file Claims either with ASP or, alternatively, with any other professional arbitration service that has existing rules of arbitration, provided that the selected alternative service also uses arbitrators who are in good standing with the Oregon State Bar, with expertise in real estate law and who can conduct the hearing in the county where the Property is located. The arbitration service in which the Claim is first filed shall handle the case to its conclusion. BY CONSENTING TO

THIS PROVISION BUYER AND SELLER ARE AGREEING THAT DISPUTES ARISING UNDER THIS AGREEMENT SHALL BE HEARD AND

DECIDED BY ONE OR MORE NEUTRAL ARBITRATORS AND BUYER AND SELLER ARE GIVING UP THE RIGHT TO HAVE THE MATTER

TRIED BY A JUDGE OR JURY. THE RIGHT TO APPEAL AN ARBITRATION DECISION IS LIMITED UNDER OREGON LAW.

35. ATTORNEY FEES IN CLAIMS BETWEEN BUYER AND SELLER: The prevailing party in any suit, action or arbitration (excluding those

Claims filed in Small Claims Court) between Buyer and Seller shall be entitled to recovery of all reasonable attorney fees and costs and disbursements as defined in ORCP 68 (including all filing and mediator fees paid in mediation). Provided, however, if a mediation service was available to Buyer or Seller when the Claim arose, the prevailing party shall not be entitled to any award of attorney fees unless it is established to the satisfaction of the arbitrator(s) or judge that the prevailing party offered or agreed in writing to participate in mediation prior to, or promptly upon, the filing in arbitration or court.

D I S P U T E R E S O L U T I O N I N V O L I N G L I C E N S E E S O R F I R M S

36. SMALL CLAIMS COURT AND ARBITRATION: All claims, controversies or disputes relating to this transaction, including those for rescission, in which a Licensee or Firm identified in the Final Agency Acknowledgment Section above is named or included as a party, shall be resolved exclusively as follows: (1) If within the jurisdictional limit of Small Claims Court, the matter shall be brought and decided there, in lieu of arbitration or litigation in any other forum. (2) All other claims, controversies or disputes involving such Licensee or Firm shall be resolved through final and binding arbitration using the arbitration selection process described in Section 34 above. Filing for arbitration shall be treated the same as filing in court for purposes of meeting any applicable statutes of limitation or for purposes of filing a lis pendens. This Section 36 shall be in lieu of litigation involving such Licensee or Firm in any other forum. Such Licensee or Firm may voluntarily participate in formal or informal mediation at any time, but shall not be required to do so under this Section 36. This Section 36 shall not apply to those matters in which: (a) The claim, controversy or dispute is exclusively between REALTORS

®

and is otherwise required to be resolved under the Professional Standards Arbitration provisions of the National Association of REALTORS

®

; (b) Licensee or Firm has agreed to participate in alternative dispute resolution in a prior written listing, service or fee agreement with Buyer or Seller, or (c) Licensee or Firm is Buyer or Seller in this transaction (in which case, Sections

31-35 shall apply). This Section 36 shall expressly survive Closing or earlier termination of this Agreement. In the event of any suit, action or arbitration relating to the enforcement or interpretation of this Agreement, the matter shall be governed exclusively by Oregon law, and venue shall be placed in the State of Oregon for all purposes. In the event that one or more Licensees and/or Firms have been named or included in any claims, controversies or disputes that also include Buyer and/or Seller, the alternative dispute resolution and attorney fee provisions of Sections

31-35 above shall continue to apply to Buyer and/or Seller, and this Section 36 shall apply exclusively to Licensees and/or Firms.

37. RECEIPT FOR EARNEST MONEY: Selling Firm acknowledges receipt of earnest money from Buyer in the sum of $ evidenced by CASH CHECK PROMISSORY NOTE payable as follows:

________

business calendar days ( check one) after mutual acceptance of this Agreement; or

on or before , ;

Other form of earnest money: .

38. EARNEST MONEY INSTRUCTIONS: Buyer instructs Selling Firm, and Selling Firm agrees, to handle the earnest money as follows

(check all that apply) :

Hold any earnest money that is in the form of a check undeposited pending mutual acceptance of this Agreement and all agreed-upon counter offers, after which time deposit it as provided herein within three (3) banking days. Deposit any earnest money funds redeemed under a promissory note with __________________________________________________________________. Deposit in Selling Firm's client trust account, and thereafter/or Deposit with Escrow. In the event the earnest money is deposited in Selling Firm’s trust account or with Escrow

(collectively “the Deposit Holder”), and the Deposit Holder has arranged to have interest on such deposit transferred to a qualified public benefit corporation for distribution to organizations and individuals for first time home-buying assistance and development of affordable housing pursuant to







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Sale Agreement #

ORS 696.241(6) or ORS 696.578(3), all parties acknowledge and agree that any interest accruing on the earnest money so deposited shall be transferred in accordance with this provision. The preceding sentence shall be subject to any other statutes or regulations governing the disposition of earnest money deposits.

SELLING LICENSEE AND SELLING FIRM SHALL HAVE NO FURTHER LIABILITY WITH RESPECT TO EARNEST MONEY WHICH THE

PARTIES HAVE AUTHORIZED TO BE TRANSFERRED TO A THIRD PARTY.

_________________________________________________________ __________________________________________________

Selling Firm Selling Licensee Signature

Office Address Phone FAX

39. PROPERTY DISCLOSURE LAW: Buyer and Seller acknowledge that unless this transaction is otherwise exempted, Oregon law provides that Buyer has a right to revoke Buyer’s offer by giving Seller written notice thereof (a) within five (5) business days after Seller’s delivery of Seller’s

Property Disclosure Statement (“the Statement”), or (b) at any time before Closing (as defined in the Oregon Administrative Rules) if Buyer does not receive the Statement from Seller before Closing. Buyer may waive the right of revocation only in writing.

Seller authorizes Listing Firm to receive Buyer’s notice of revocation, if any, on Seller’s behalf.

40. COUNTERPARTS/DELIVERY: This Agreement may be signed in multiple counterparts with the same legal effect as if all parties signed the same document. This shall mean that delivery (e.g., transmissions manually, by facsimile, electronic mail, overnight mail, first-class regular or certified mail, etc.) of a legible true copy of a signed original of this Agreement, including but not limited to all addenda, counter offers, and legal notices required thereunder, shall be treated the same as delivery of the original document.

41. AGREEMENT TO PURCHASE: Buyer agrees to purchase the Property upon the terms and conditions set forth in this Agreement.

Buyer acknowledges receipt of a completely filled in copy of this Agreement which Buyer has fully read and understands. Buyer acknowledges that Buyer has not relied upon any oral or written statements made by Seller or any Licensee which are not expressly contained in this Agreement. Neither Seller nor any Licensee(s) warrant the square footage of any structure or the size of any land being purchased. If square footage or land size is a material consideration, all structures and land should be measured by Buyer prior to signing or should be made an express contingency in this Agreement.

Deed or contract shall be prepared in the name of

This offer shall automatically expire on (insert date) , at a.m. p.m., (the Offer Deadline), if not accepted by that time. Buyer may withdraw this offer before the Offer Deadline any time prior to Seller's acceptance. If Seller accepts this offer after the Offer Deadline, it shall not be binding upon Buyer unless accepted by Buyer in writing within

_____

business days (two [2] if not filled in) after the date of Seller’s acceptance by so indicating at Section 45 below. This offer may be accepted by Seller only in writing.

.

Buyer

Buyer

Address

Phone Home Work

Date ,

Date

E-mail

, a.m. p.m. a.m.

Zip

Fax p.m.

NO CHANGES OR ALTERATIONS ARE PERMITTED TO ANY PORTION OF THE PRE-PRINTED FORMAT OR TEXT OF THIS FORM. ANY

SUCH PROPOSED CHANGES OR ALTERATIONS SHOULD BE MADE ON A SEPARATE DOCUMENT. CHANGES BY SELLER OR LISTING

LICENSEE TO THE TERMS OR PROVISIONS ABOVE BUYER’S SIGNATURE SHOULD ALSO BE ON A SEPARATE DOCUMENT.

This offer was submitted to Seller for signature on the

______

day of , , at a.m. p.m.

By ________________________________________________________________________________________ (Licensee(s) presenting offer).

42. AGREEMENT TO SELL / ACKNOWLEDGEMENTS / DISPOSITION OF EARNEST MONEY: Seller accepts Buyer’s offer. Seller acknowledges receipt of a completely filled-in copy of this Agreement, which Seller has fully read and understands. Seller acknowledges that Seller has not relied upon any oral or written statements of Buyer or of any Licensee(s) which are not expressly contained in this Agreement. Seller instructs that all earnest money distributable to Seller pursuant to Section 25 above, shall be disbursed as follows after deduction of any title insurance and Escrow cancellation charges: (check one) First to Listing Firm to the extent of the agreed commission just as if the transaction had been Closed, with residue to Seller, or .

Seller

Seller

Date

Date

,

, a.m. a.m. p.m. p.m.







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Sale Agreement #

Address

Phone Home

Address

Phone Home

Work

Work

E-mail

E-mail

Zip

Fax

43. REJECTION/COUNTER OFFER: SELECT ONE: Seller does not accept the above offer, but makes the attached counter offer.

Seller rejects Buyer's offer.

Seller Date , a.m. p.m.

Seller Date , a.m. p.m.

Zip

Fax

44. BUYER'S ACKNOWLEDGMENT: Buyer acknowledges receipt of a copy of Seller's written response to this Agreement. If Seller's response is an acceptance of Buyer's offer that occurred after the Offer Deadline identified at Section 41 above, Buyer (select only one) agrees does not agree, to be bound thereby. (The failure to check either box shall constitute rejection of Seller's acceptance after the Offer Deadline.)

Buyer Date , a.m. p.m.

Buyer Date , a.m. p.m.

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45. FIRMS/LICENSEES:

Selling Licensee

Selling Firm Office Address

Phone

Listing Licensee

Listing Firm Office Address

Phone

Phone

Phone

Selling Firm

E-mail

Listing Firm

E-mail

Fax

Fax







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OREGON REAL ESTATE INITIAL AGENCY

DISCLOSURE PAMPHLET

OAR 863-015-215 (4)

Consumers: This pamphlet describes the legal obligations of Oregon real estate licensees to consumers. Real estate brokers and principal real estate brokers are required to provide this information to you when they first contact you. A licensed real estate broker or principal broker need not provide the pamphlet to a party who has, or may be reasonably assumed to have, received a copy of the pamphlet from another broker.

This pamphlet is informational only. Neither the pamphlet nor its delivery to you may be interpreted as evidence of intent to create an agency relationship between you and a broker or a principal broker.

Real Estate Agency Relationships

An "agency" relationship is a voluntary legal relationship in which a licensed real estate broker or principal broker (the "agent"), agrees to act on behalf of a buyer or a seller (the "client") in a real estate transaction.

Oregon law provides for three types of agency relationships between real estate agents and their clients:

Seller's Agent - Represents the seller only;

Buyer's Agent - Represents the buyer only;

Disclosed Limited Agent - Represents both the buyer and seller, or multiple buyers who want to purchase the same property. This can be done only with the written permission of all clients.

The actual agency relationships between the seller, buyer and their agents in a real estate transaction must be acknowledged at the time an offer to purchase is made. Please read this pamphlet carefully before entering into an agency relationship with a real estate agent.

Definition of “Confidential Information”

Generally, licensees must maintain confidential information about their clients. “Confidential information” is information communicated to a real estate licensee or the licensee’s agent by the buyer or seller of one to four residential units regarding the real property transaction, including but not limited to price, terms, financial qualifications or motivation to buy or sell. “Confidential information” does not mean information that:

1. The buyer instructs the licensee or the licensee’s agent to disclose about the buyer to the seller, or the seller instructs the licensee or the licensee’s agent to disclose about the seller to the buyer; and

2. The licensee or the licensee’s agent knows or should know failure to disclose would constitute fraudulent representation.

Duties and Responsibilities of Seller’s Agent

Under a written listing agreement to sell property, an agent represents only the seller unless the seller agrees in writing to allow the agent to also represent the buyer. An agent who represents only the seller owes the following affirmative duties to the seller, the other parties and the other parties’ agents involved in a real estate transaction:

1. To deal honestly and in good faith;

2. To present all written offers, notices and other communications to and from the parties in a timely manner without regard to whether the property is subject to a contract for sale or the buyer is already a party to a contract to purchase; and

3. To disclose material facts known by the agent and not apparent or readily ascertainable to a party;

This form has been licensed for use solely by UserName pursuant to a Forms License Agreement with Oregon Real Estate Forms, LLC

Provided by Oregon Real Estate Forms, LLC 9/9/2013 www.orefonline.com OREF 042

May not be reproduced without express permission of Oregon Real Estate Forms, LLC Page 1 of 3


Page 11 of 17

A seller’s agent owes the seller the following affirmative duties;

1. To exercise reasonable care and diligence;

2. To account in a timely manner for money and property received from or on behalf of the seller;

3. To be loyal to the seller by not taking action that is adverse or detrimental to the seller’s interest in a transaction;

4. To disclose in a timely manner to the seller any conflict of interest, existing or contemplated;

5. To advise the seller to seek expert advice on matters related to the transactions that are beyond the agent's expertise;

6. To maintain confidential information from or about the seller except under subpoena or court order, even after termination of the agency relationship; and

7. Unless agreed otherwise in writing, to make a continuous, good faith effort to find a buyer for the property, except that a seller's agent is not required to seek additional offers to purchase the property while the property is subject to a contract for sale.

None of the above affirmative duties of an agent may be waived, except #7. The affirmative duty listed in #7 can only be waived by written agreement between seller and agent.

Under Oregon law, a seller's agent may show properties owned by another seller to a prospective buyer and may list competing properties for sale without breaching any affirmative duty to the seller.

Unless agreed to in writing, an agent has no duty to investigate matters that are outside the scope of the agent's expertise, including but not limited to investigation of the condition of property, the legal status of the title or the seller’s past conformance with law.

Duties and Responsibilities of Buyer’s Agent

An agent, other than the seller’s agent, may agree to act as the buyer’s agent only. The buyer’s agent is not representing the seller, even if the buyer’s agent is receiving compensation for services rendered, either in full or in part, from the seller or through the seller’s agent.

An agent who represents only the buyer owes the following affirmative duties to the buyer, the other parties and the other parties’ agents involved in a real estate transaction:

1. To deal honestly and in good faith;

2. To present all written offers, notices and other communications to and from the parties in a timely manner without regard to whether the property is subject to a contract for sale or the buyer is already a party to a contract to purchase; and

3. To disclose material facts known by the agent and not apparent or readily ascertainable to a party.

A buyer’s agent owes the buyer the following affirmative duties:

1. To exercise reasonable care and diligence;

2. To account in a timely manner for money and property received from or on behalf of the buyer;

3. To be loyal to the buyer by not taking action that is adverse or detrimental to the buyer’s interest in a transaction;

4. To disclose in a timely manner to the buyer any conflict of interest, existing or contemplated;

5. To advise the buyer to seek expert advice on matters related to the transaction that are beyond the agent’s expertise;

6. To maintain confidential information from or about the buyer except under subpoena or court order, even after termination of the agency relationship; and

7. Unless agreed otherwise in writing, to make a continuous, good faith effort to find property for the buyer, except that a buyer’s agent is not required to seek additional properties for the buyer while the buyer is subject to a contract for purchase.

None of these affirmative duties of an agent may be waived, except #7. The affirmative duty listed in #7 can only be waived by written agreement between buyer and agent.





Page 12 of 17

Under Oregon law, a buyer’s agent may show properties in which the buyer is interested to other prospective buyers without breaching an affirmative duty to the buyer.

Unless agreed to in writing, an agent has no duty to investigate matters that are outside the scope of the agent’s expertise, including but not limited to investigation of the condition of property, the legal status of the title or the seller’s past conformance with law.

Duties and Responsibilities of an Agent

Who Represents More than One Client in a Transaction

One agent may represent both the seller and the buyer in the same transaction, or multiple buyers who want to purchase the same property, only under a written "Disclosed Limited Agency Agreement” signed by the seller and buyer(s).

Disclosed Limited Agents have the following duties to their clients:

1. To the seller, the duties listed above for a seller’s agent; and

2. To the buyer, the duties listed above for a buyer’s agent;

3. To both buyer and seller, except with express written permission of the respective person, the duty not to disclose to the other person: a. That the seller will accept a price lower or terms less favorable than the listing price or terms; b. That the buyer will pay a price greater or terms more favorable than the offering price or terms; or c. Confidential information as defined above.

Unless agreed to in writing, an agent has no duty to investigate matters that are outside the scope of the agent’s expertise.

When different agents associated with the same principal broker (a real estate licensee who supervises other agents) establish agency relationships with different parties to the same transaction, only the principal broker will act as a Disclosed Limited

Agent for both buyer and seller. The other agents continue to represent only the party with whom the agents have already established an agency relationship unless all parties agree otherwise in writing. The principal real estate broker and the real estate licensees representing either seller or buyer shall owe the following duties to the seller and buyer:

1. To disclose a conflict of interest in writing to all parties;

2. To take no action that is adverse or detrimental to either party's interest in the transaction; and

3. To obey the lawful instruction of both parties.

No matter whom they represent, an agent must disclose information the agent knows or should know that failure to disclose would constitute fraudulent misrepresentation.

You are encouraged to discuss the above information with the licensee delivering this pamphlet to you. If you intend for that licensee, or any other Oregon real estate licensee, to represent you as a Seller's Agent, Buyer's Agent, or

Disclosed Limited Agent, you should have a specific discussion with the agent about the nature and scope of the agency relationship. Whether you are a buyer or seller, you cannot make a licensee your agent without the licensee’s knowledge and consent, and an agent cannot make you their client without your knowledge and consent.





Page 13 of 17

SELLER’S PROPERTY DISCLOSURE STATEMENT

Property Address

7

8

9

10

15

16

17

18

19

11

12

13

14

20

21

22

23

4

5

6

1

2

3

I N S T R U C T I O N S T O T H E S E L L E R

Please complete the following form. Do not leave any spaces blank. Please refer to the line number(s) of the question(s) when you provide your explanation(s). If you are not claiming an exclusion or refusing to provide the form under ORS 105.475 (4), you should date and sign each page of this disclosure statement and each attachment.

Each seller of residential property described in ORS 105.465 must deliver this form to each buyer who makes a written offer to purchase. Under ORS 105.475

(4), refusal to provide this form gives the buyer the right to revoke their offer at any time prior to closing the transaction. Use only the section(s) of the form that apply to the transaction for which the form is used. If you are claiming an exclusion under ORS 105.470, fill out only Section 1.

An exclusion may be claimed only if the seller qualifies for the exclusion under the law. If not excluded, the seller must disclose the condition of the property or the buyer may revoke their offer to purchase anytime prior to closing the transaction. Questions regarding the legal consequences of the seller's choice should be directed to a qualified attorney.

DO NOT FILL OUT THIS SECTION UNLESS YOU ARE CLAIMING AN EXCLUSION UNDER ORS 105.470

Section 1. EXCLUSION FROM ORS 105.465 TO 105.490:

You may claim an exclusion under ORS 105.470 only if you qualify under the statute. If you are not claiming an exclusion, you must fill out Section 2 of this form completely.

Initial only the exclusion you wish to claim.

This is the first sale of a dwelling never occupied. The dwelling is constructed or installed under building or installation permit(s) #

issued by .

This sale is by a financial institution that acquired the property as custodian, agent or trustee, or by foreclosure or deed in lieu of foreclosure.

The seller is a court appointed (Check only one): receiver personal representative trustee conservator guardian

This sale or transfer is by a governmental agency.

Signature(s) of Seller(s) Claiming Exclusion

Seller Date

Signature(s) of Buyer(s) Acknowledging Seller’s Claim

Buyer Date

Seller

Buyer

Date

Date

27

28

29

30

31

32

33

34

35

36

37

38

24

25

26

IF YOU DID NOT CLAIM AN EXCLUSION IN SECTION 1, YOU MUST FILL OUT THIS SECTION.

Section 2. SELLER'S PROPERTY DISCLOSURE STATEMENT

( NOT A WARRANTY ) (ORS 105.465)

NOTICE TO THE BUYER: THE FOLLOWING REPRESENTATIONS ARE MADE BY THE SELLER(S) CONCERNING THE CONDITION OF THE

PROPERTY LOCATED AT “THE PROPERTY."

DISCLOSURES CONTAINED IN THIS FORM ARE PROVIDED BY THE SELLER ON THE BASIS OF SELLER'S ACTUAL KNOWLEDGE OF THE

PROPERTY AT THE TIME OF DISCLOSURE. BUYER HAS FIVE BUSINESS DAYS FROM THE SELLER'S DELIVERY OF THIS SELLER'S

DISCLOSURE STATEMENT TO REVOKE BUYER'S OFFER BY DELIVERING BUYER'S SEPARATE SIGNED WRITTEN STATEMENT OF

REVOCATION TO THE SELLER DISAPPROVING THE SELLER'S DISCLOSURE STATEMENT, UNLESS BUYER WAIVES THIS RIGHT AT OR PRIOR

TO ENTERING INTO A SALE AGREEMENT.

FOR A MORE COMPREHENSIVE EXAMINATION OF THE SPECIFIC CONDITION OF THIS PROPERTY, BUYER IS ADVISED TO OBTAIN AND PAY

FOR THE SERVICES OF A QUALIFIED SPECIALIST TO INSPECT THE PROPERTY ON BUYER'S BEHALF INCLUDING, FOR EXAMPLE, ONE OR

MORE OF THE FOLLOWING: ARCHITECTS, ENGINEERS, PLUMBERS, ELECTRICIANS, ROOFERS, ENVIRONMENTAL INSPECTORS, BUILDING

INSPECTORS, CERTIFIED HOME INSPECTORS, OR PEST AND DRY ROT INSPECTORS.

Seller is is not occupying the property.

I . S E L L E R ’ S R E P R E S E N T A T I O N S :

SELLER Date SELLER Date


LINES WITH THIS SYMBOL REQUIRE A SIGNATURE AND DATE


Buyer Initials _____/_____ Date_____

No portion may be reproduced without express permission of Oregon Real Estate Forms, LLC OREF 020-1


Page 14 of 17

39

40

41

60

75

76

77

78

79

68

69

70

71

72

73

74

80

81

82

83

61

62

63

64

65

66

67

49

50

51

52

53

54

55

56

57

58

59

42

43

44

45

46

47

48

84

92

93

94

95

96

97

98

99

85

86

87

88

89

90

91

100


Property Address

The following are representations made by the seller and are not the representations of any financial institution that may have made or may make a loan pertaining to the property, or that may have or take a security interest in the property, or any real estate licensee engaged by the seller or the buyer.

*If you mark yes on items with *, attach a copy or explain on an attached sheet .

1. TITLE

A. Do you have legal authority to sell the property? ..................................................................................... Yes

*B. Is title to the property subject to any of the following

First right of refusal Option

: ............................................................................... Yes*

Lease or rental agreement Other listing Life estate

*C

*E.

Is the property being transferred an unlawfully established unit of land ? ................................................ Yes*

*D. Are there any encroachments, boundary agreements, boundary disputes or recent boundary changes?

....................................................................................................................... Yes*

Are there any rights of way, easements, licenses, access limitations or claims that may affect your interest in the property?

................................................................................ Yes*

*F. Are there any agreements for joint maintenance of an easement or right of way?

................................. Yes*

*G. Are there any governmental studies, designations, zoning overlays, surveys or notices that would affect the property?

................................................................................................. Yes*

*H. Are there any pending or existing governmental assessments against the property? ........................... Yes*

*I.

*J.

*K.

*L.

Are there any zoning violations or nonconforming uses?

Is there a boundary survey for the property?

........................................................................ Yes*

........................................................................................... Yes*

Are there any covenants, conditions, restrictions or private assessments that affect the property?

Is the property subject to any special tax assessment or tax treatment that may

.............. Yes* result in levy of additional taxes if the property is sold?

............................................................................ Yes*

2. WATER

B.

C.

A. Household water

(1) The source of the water is (check ALL that apply): Public Community Private Other

(2) Water source information:

*a) Does the water source require a water permit?

...................................................................... Yes*

*b)

If yes, do you have a permit?

.................................................................................................. Yes

Is the water source located on the property?

*

.......................................................................... Yes*

If not, are there any written agreements for a shared water source?

................................... Yes*

*c) Is there an easement (recorded or unrecorded) for your access to or maintenance of the water source?

......................................................................................... Yes*

d) If the source of water is from a well or spring, have you had any of the following in the past 12 months? ...................................................................................... Yes

Flow test Bacteria test Chemical contents test

*e) Are there any water source plumbing problems or needed repairs?

..................................... Yes*

(3) Are there any water treatment systems for the property? ............................................................... Yes

Leased Owned

Irrigation

(1) Are there any water rights or other rights for the property? .................................................. Yes

* (2) If any exist, has the irrigation water been used during the last five-year period?

........................... Yes*

* (3) Is there a water rights certificate or other written evidence available?

............................................ Yes*

Outdoor sprinkler system

(1) Is there an outdoor sprinkler system for the property? .................................................................... Yes

(2) Has a back flow valve been installed? ............................................................................................. Yes

(3) Is the outdoor sprinkler system operable?....................................................................................... Yes

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

3. SEWAGE SYSTEM

A

B.

C.

Is the property connected to a public or community sewage system? .................................................... Yes

Are there any new public or community sewage systems proposed for the property? ........................... Yes

No

No

Is the property connected to an on-site septic system? ....................................................................... Yes No

(1) If yes, when was the system installed? ........................................................................................ ____________

(2) *If yes, was the system installed by permit?

(3) *Has the system been repaired or altered? ........................................................................................ Yes*

(4) *Has the condition of the system been evaluated and a report issued? .......................................... Yes

No

No

No (5) Has the septic tank ever been pumped? ............................................................................................ Yes

If yes, when? NA

(6) Does the system have a pump?

(7) Does the system have a treatment unit such as a sand filter or an aerobic unit?

Yes

Yes

(8) *Is a service contract for routine maintenance required for the system?

(9) Are all components of the system located on the property?

Yes

Yes

*D. Are there any sewage system problems or needed repairs?

.................................................................. Yes*

E. Does your sewage system require on-site pumping to another level? ................................................. Yes

No

No

No

No

No

No

Unknown

Unknown

Unknown

Unknown

Unknown

Unknown

Unknown

Unknown

Unknown

Unknown

Unknown

Unknown

Unknown

Unknown

Unknown

Unknown

Unknown

Unknown

Unknown

Unknown

Unknown

Unknown

Unknown

Unknown

Unknown

Unknown

NA

NA

NA

NA

NA

NA

NA

NA

Unknown

Unknown

Unknown

Unknown

Unknown

Unknown

Unknown

NA

NA

NA

NA

Unknown NA

Unknown NA

Unknown NA

Unknown NA

Unknown

Unknown








Page 15 of 17


Property Address

107

122

123

124

125

126

127

128

129

130

131

132

133

134

135

115

116

117

118

119

120

121

108

109

110

111

112

113

114

101

102

103

104

105

106

136

137

138

139

140

141

142

143

144

145

146

147

148

149

150

151

152

153

154

155

156

157

4. DWELLING INSULATION

A. Is there insulation in the:

(1) Ceiling? ................................................................................................................................................ Yes

(2) Exterior walls? ..................................................................................................................................... Yes

B.

(3) Floors? ................................................................................................................................................. Yes

Are there any defective insulated doors or windows? .............................................................................. Yes

No

No

No

No

Unknown

Unknown

Unknown

Unknown

5. DWELLING STRUCTURE

*A.

B.

Has the roof leaked?

................................................................................................................................. Yes*

If yes, has it been repaired? ..................................................................................................................... Yes

Are there any additions, conversions or remodeling? .............................................................................. Yes

If yes, was a building permit required? ..................................................................................................... Yes

If yes, was a building permit obtained? .................................................................................................... Yes

No

No

No

No

No

Unknown

Unknown

Unknown

Unknown

Unknown

C.

If yes, was final inspection obtained? ....................................................................................................... Yes

Are there smoke alarms or detectors? ..................................................................................................... Yes

D. Are there carbon monoxide alarms?

E. Is there a woodstove or fireplace insert included in the sale?

*If yes, what is the make?

... Yes

... Yes

*If yes, was it installed with a permit?

....................................................................................................... Yes*

No

No

No

No

Unknown

Unknown

Unknown

Unknown

*If yes, is a certification label issued by the United States Environmental Protection Agency (EPA) or the

Department of Environmental Quality (DEQ) affixed to it?

...................................................................... Yes*

*F. Has pest and dry rot, structural or "whole house" inspection been done within the last three years?

............. Yes*

*G.

No

No

Unknown

Unknown

Are there any moisture problems, areas of water penetration, mildew odors or other moisture conditions (especially in the basement)?

..................................................................... Yes* No

*If yes, explain on attached sheet the frequency and extent of problem and any insurance claims, repairs or remediation done.

Unknown

H.

I.

Is there a sump pump on the property? ................................................................................................... Yes

Are there any materials used in the construction of the structure that are or have been the subject of a recall, class action suit, settlement or litigation? ........................................... Yes

No

No

No

Unknown

Unknown

Unknown

If yes, what are the materials?

(1) Are there problems with the materials? ........................................................................................... Yes

(2) Are the materials covered by a warranty? ....................................................................................... Yes

(3) Have the materials been inspected? ............................................................................................... Yes

(4) Have there ever been claims filed for these materials by you or by previous owners? .................. Yes

If yes, when?

(5) Was money received? ..................................................................................................................... Yes

(6) Were any of the materials repaired or replaced? ............................................................................ Yes

No

No

No

No

No

No

Unknown

Unknown

Unknown

Unknown

Unknown

Unknown

6. DWELLING SYSTEMS AND FIXTURES

If the following systems or fixtures are included in the purchase price, are they in good working order on the date this form is signed?

F.

G.

H.

I.

A.

B.

C.

D.

J.

Electrical system, including wiring, switches, outlets and service ............................................................ Yes

Plumbing system, including pipes, faucets, fixtures and toilets ............................................................... Yes

Water heater tank ..................................................................................................................................... Yes

Garbage disposal...................................................................................................................................... Yes

Built-in range and oven ............................................................................................................................. Yes

Built-in dishwasher .................................................................................................................................... Yes

Sump pump .............................................................................................................................................. Yes

Heating and cooling systems ................................................................................................................... Yes

Security system Owned Leased .................................................................................................. Yes

Are there any materials or products used in the systems and fixtures that are or have been the subject of a recall, class action settlement or other litigations? ............. Yes

If yes, what product?

(1) Are there problems with the product? .............................................................................................. Yes

(2) Is the product covered by a warranty? ............................................................................................ Yes

(3) Has the product been inspected? .................................................................................................... Yes

(4) Have claims been filed for this product by you or by previous owners? ......................................... Yes

If yes, when?

(5) Was money received? ..................................................................................................................... Yes

(6) Were any of the materials or products repaired or replaced? ......................................................... Yes

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

No

Unknown

Unknown

Unknown

Unknown

Unknown

Unknown

Unknown

Unknown

Unknown

Unknown

Unknown

Unknown

Unknown

Unknown

Unknown

Unknown

NA

NA

NA

NA

NA

NA

NA.

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA








Page 16 of 17

202

203

204

205

206

207

193

194

195

196

197

198

199

200

201

208

209

210

211

158

159

160

161

162

163

164

165

166

167

168

169

170

171

172

173

174

175

176

177

178

179

180

181

182

183

184

185

186

187

188

189

190

191

192

B.

*C.

D.

E.

F.

7. COMMON INTEREST

A. Is there a Home Owners' Association or other governing entity? ............................................................ Yes

Name of Association or Other Governing Entity

No Unknown

Contact Person

Address

Regular periodic assessments: $ per Month Year Other

Are there any pending or proposed special assessments?

..................................................................... Yes*

Are there shared "common areas" or joint maintenance agreement for facilities like walls, fences,

Phone Number

No Unknown pools, tennis courts, walkways or other areas co-owned in undivided interest with others? ................... Yes

Is the Home Owners' Association or other governing entity a party to

No Unknown pending litigation or subject to an unsatisfied judgment? ......................................................................... Yes

Is the property in violation of recorded covenants, conditions and restrictions or in violation of other bylaws or governing rules, whether recorded or not? ........................ Yes

No

No

Unknown

Unknown

A.

B.

C.

D.

E.

*F.

8. GENERAL

Are there problems with settling, soil, standing water or drainage on the property or in the immediate area? .................................................................................................... Yes

Does the property contain fill? .................................................................................................................. Yes

Is there any material damage to the property or any of the structure(s) from fire, wind, floods, beach movements, earthquake, expansive soils or landslides? ......................... Yes

Is the property in a designated floodplain? ............................................................................................... Yes

Is the property in a designated slide or other geologic hazard zone?...................................................... Yes

G.

H.

I.

Has any portion of the property been tested or treated for asbestos, formaldehyde, radon, gas, lead-based paint, mold, fuel or chemical storage tanks or contaminated soil or water?

......................... Yes*

Are there any tanks or underground storage tanks (e.g., septic, chemical, fuel, etc.) on the property? . Yes

Has the property ever been used as an illegal drug manufacturing or distribution site? ............................... Yes

*If yes, was a Certificate of Fitness issued?

............................................................................................. Yes*

Has the property been classified as forestland-urban interface? ............................................................. Yes

No

No

No

No

No

No

No

No

No

No

Unknown

Unknown

Unknown

Unknown

Unknown

Unknown

Unknown

Unknown

Unknown

Unknown

NA

NA

NA

*A.

9. FULL DISCLOSURE BY SELLER(S)

Are there any other material defects affecting this property or its value that a prospective buyer should know about ? ................................................................................................. Yes* No

If yes, describe the defect on attached sheet and explain the frequency and extent of the problem and any insurance claims, repairs or remediation?

V E R I F I C A T I O N

The foregoing answers and attached explanations (if any) are complete and correct to the best of my/our knowledge and I/we have received a copy of this disclosure statement. I/we authorize my/our agents to deliver a copy of this disclosure statement to all prospective buyers of the property or their agents.

_______ (complete even if zero) Number of pages of explanations are attached.

Seller Date Seller Date

I I . B U Y E R ’ S A C K N O W L E D G M E N T :

A. As buyer(s), I/we acknowledge the duty to pay diligent attention to any material defects that are known to me/us or can be known by me/us by utilizing diligent attention and observation.

B. Each buyer acknowledges and understands that the disclosures set forth in this statement and in any amendments to this statement are made only by the seller and are not the representations of any financial institution that may have made or may make a loan pertaining to the property, or that may have or take a security interest in the property, or of any real estate licensee engaged by the seller or buyer. A financial institution or real estate licensee is not bound by and has no liability with respect to any representation, misrepresentation, omission, error or inaccuracy contained in another party's disclosure statement required by this section or any amendment to the disclosure statement.

C. Buyer (which term includes all persons signing the "Buyer's Acknowledgment" portion of this disclosure statement below) hereby acknowledges receipt of a copy of this disclosure statement (including attachments, if any) bearing seller's signature(s).

DISCLOSURES, IF ANY, CONTAINED IN THIS FORM ARE PROVIDED BY THE SELLER ON THE BASIS OF SELLER'S ACTUAL KNOWLEDGE OF

THE PROPERTY AT THE TIME OF DISCLOSURE. IF THE SELLER HAS FILLED OUT SECTION 2 OF THIS FORM, YOU, THE BUYER, HAVE FIVE

BUSINESS DAYS FROM THE SELLER'S DELIVERY OF THIS DISCLOSURE STATEMENT TO REVOKE YOUR OFFER BY DELIVERING YOUR

SEPARATE SIGNED WRITTEN STATEMENT OF REVOCATION TO THE SELLER DISAPPROVING THE SELLER'S DISCLOSURE UNLESS YOU

WAIVE THIS RIGHT AT OR PRIOR TO ENTERING INTO A SALE AGREEMENT.

BUYER HEREBY ACKNOWLEDGES RECEIPT OF A COPY OF THIS SELLER'S PROPERTY DISCLOSURE STATEMENT.

Date Buyer Date Buyer

Licensee receiving disclosure statement on buyer's behalf to sign and date:

Real Estate Licensee Date received by Licensee

Real Estate Firm







OREF 020-4

Page 17 of 17

The Bullet Proof Earnest Money

The Bullet Proof Earnest Money

Presented By

Richard Mario

Litigation

Business and Real Estate Law

Richard A. Mario

Attorney at Law & Shareholder

Richard Mario began to represent clients in 1980 and is admitted to both the Arizona & Oregon State

Washington Square, a 600 acre residential development in Lincoln City, and a 500 acre mixed use development in Klamath County. Richard also co-founded the firm’s Wine Law Practice Group and volunteers his expertise to the Eola-Amity Hills AVA.

Richard has a wide range of knowledge of the particular challenges faced by buyers, sellers, and brokers in the residential real estate industry. He represents these clients before governmental agencies, in land use disputes, and real estate licensing.

Richard enjoys teaching more than 60 classes a year to real estate agents, title insurance representatives, and other esteemed professionals. He also enjoys teaching skiing at Mt. Hood Meadows as a certified ski instructor.

Richard and his family enjoy skiing, mountain bike riding, and camping.

The Bullet Proof Earnest Money

1

2

3

What is your responsibility as an agent?

1.1

Sellers.

1.2

Buyers.

1.3

Do you want to accept more responsibility?

1.4

Referrals. Should you use a list of three?

Earnest money is where your performance responsibility becomes memorialized.

Earnest money is a contract.

3.1

Essential elements of a contract must be met.

3.1.1 Price.

3.1.2 Property description.

3.1.3 Terms and conditions.

3.1.4 Repairs and inspections.

3.1.5 Special conditions.

3.1.6 Sale of property.

3.1.7 Partition of lot.

3.1.8 Subject to seller paying portion of buyer’s costs.

3.1.9 Seller financing.

3.1.10 Buyer providing financing qualifications information.

3.1.11 Seller’s agent to approve list price of purchaser’s property if contingent sale.

3.1.12 Subject to attorney approval, CPA approval and other approval.

3.1.13 1031 Exchange.

3.1.14 Seller’s representations.

3.1.15 “As Is.”

3.1.16 Closing.

3.1.17 Title Insurance.

3.1.18 Additional land sales contract.

3.1.19 Arbitration and mediation.

4

3.1.20 Other contingencies.

3.2

Purpose is to demonstrate a meeting of the minds on the elements.

Forms.

4.1

A contract with many of the terms spelled out and to be filled out.

4.2

The more you add or delete the form, the more you accept responsibility to make sure everything is included and correctly stated.

4.3

If you are not comfortable or uncertain with what you are drafting then ask why.

4.4

The more you add or delete the more opportunity there is to argue by what is meant and whether there is a meeting of the minds.

_____

_____

_____

____________ ,

______

______________

___________

_____________,____________

____________

____________

________

_____

______

OREGON REAL ESTATE INITIAL AGENCY

DISCLOSURE PAMPHLET

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