Article Guide
When embarking on the journey of buying or selling real estate in Michigan, understanding the Michigan Real Estate Buy form is crucial. This form serves as a contract for the sale and purchase of real estate, outlining the responsibilities and agreements between buyers and sellers. It includes essential details such as the legal description of the property, the purchase price, and payment terms. Additionally, it addresses contingencies related to financing and insurance, ensuring that buyers secure the necessary funds and coverage before finalizing the deal. The form also specifies the earnest money deposit, a good faith gesture that shows the buyer's commitment to the transaction. Other important components include provisions for closing, possession, and proration of costs. Importantly, the form emphasizes the need for legal counsel, encouraging parties to seek professional advice to fully understand their rights and obligations. In essence, the Michigan Real Estate Buy form is a vital tool that facilitates a smooth transaction while protecting the interests of all parties involved.
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CONTRACT FOR THE SALE AND PURCHASE OF REAL ESTATE
This form is provided as a courtesy to the parties only. It is not required to be used in this transaction and may not fit the needs, goals and purposes of the parties. The Mississippi Association of REALTORS® makes no statement or warranty as to this form, its contents or use, and the parties, by their use of this form, acknowledge said facts and agree that neither the Mississippi Association of REALTORS® nor any member thereof shall be liable to any party or person for its contents or use. If any party to this transaction does not fully understand it, or has any question, the party should seek advice from a competent legal professional before signing.
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This Contract is made the |
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Buyer(s) |
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agree(s) to buy |
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and Seller(s) |
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agree(s) to |
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4sell, the herein described property:
5 Legal Description:
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in |
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County, MS |
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(street address) |
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(city/town/zip code) |
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9together with the following items:
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all items permanently attached, unless specifically excluded herein. The Property is further |
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described as tax parcel # |
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in the records of the county courthouse |
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within which the property is located, the exact legal description to be determined by survey (if warranted). |
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141.
PURCHASE PRICE: The buyer will pay a total sum of
Cash Down Payment: Paid at closing and subject to adjustments and prorations
BALANCE: Balance payable
Balance is payable as: (check one of the options below) (A) Cash
OR
(B) New Loan (check appropriate boxes):
FHA VA CONV Other:
$
$
$
Adjustable Fixed
222.
LOAN AND INSURANCE CONTINGENCY: Contract is contingent upon (1) Buyer(s) being approved for a loan sufficient to close and (2) approval of homeowner's insurance to be issued to Buyer(s) at Closing.
Within seven (7) calendar days after the effective date of the Contract, Buyer(s) will make application in proper form for both the loan(s) and homeowner's insurance, shall cooperate with proper parties to obtain approval(s), diligently and timely pursue the same in good faith, execute all documents and furnish all information and documents required, and timely pay any costs of obtaining such loan and insurance commitments.
29Within
30notice of loan approval from lender, and (2) written proof of a commitment to issue insurance. Failure of the Buyer(s) to
31make timely application for loan and/or insurance or deliver the required loan commitment notice or proof of insurability
32shall entitle the Seller(s) at its option to (A) excuse the failure and proceed with the transaction on such terms as the parties
33may agree to in writing in the form of an amendment to the Contract; or (B) declare the Contract void and return to Buyer(s)
34its earnest money deposit.
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3. EARNEST MONEY: A sum of $ |
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[Broker/Trustee], who |
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37clearance of check. Upon acceptance of the Contract, earnest money deposit and down payment received by above named
38Broker/Trustee shall be deposited in an escrow account and shall remain in that account until the transaction has been
39consummated or terminated. All such funds will be deposited by the above named Broker/Trustee in federally insured
40accounts. The Broker has the authority to provide the earnest money to the rightfully entitled party based upon the terms of
41the Contract. Any party who wrongfully terminates this Contract shall forfeit their right to any earnest money funds. In the
42event the Broker cannot determine by the terms of the Contract which party is rightfully entitled to the earnest money, the
43Broker shall interplead the funds.
Page 1 of 6 |
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Copyright ©2008 by Mississippi Association of REALTORS® |
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F1 - Contract for the Sale and Purchase of Real Estate |
Rev. Date 1/2008 |
Phone: |
Fax: |
Produced with ZipForm™ by RE FormsNet, LLC 18025 Fifteen Mile Road, Clinton Township, Michigan 48035 www.zipform.com
444. MULTIPLE LISTING SERVICE (MLS). The Selling Broker is a participant of the
45Multiple Listing Service and the sales information will be provided to the MLS to be published and disseminated to it's
46Participants.
475. COSTS OF SALE: (Please mark each space with appropriate letter(s) Print the letter S if paid by the Seller(s) Print
48the letter B if paid by Buyer(s). Print the letter J if split by parties. Print NA if not applicable or No if not desired.
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Loan Origination |
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VA Funding Fee |
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Doc. Prep. |
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Home Insp. |
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Disc. Points |
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Tax Service |
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Title Ins. Owner |
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Mold Insp. |
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Appraisal |
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Title Ins. Lender |
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Well/Septic Insp. |
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Credit Report |
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Courier Ser. |
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Environmental Insp. |
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Assumption Fee |
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Atty. Closing Fee |
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Recording Fee |
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Wetlands Insp. |
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Underwriting |
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Certificate of Title |
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Survey |
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Home Warranty |
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Flood Cert. |
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Deed Preparation |
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Wood Destroying Insect Report (WDIR) |
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56Leasehold Transfer Fee
57Other
58 6. THE FOLLOWING VA/FHA STATEMENT |
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IS NOT APPLICABLE. |
59VA/FHA FINANCING: It is expressly agreed that not withstanding any other provisions of this Contract, the Buyer(s) shall
60not be obligated to complete the purchase of the Property described herein or forfeiture of earnest money deposits or otherwise
61unless the Seller(s) has/have delivered to Buyer(s) a written statement issued by the Federal Housing Commissioner setting
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forth the appraised value ( |
FHA or |
VA ) of the Property for mortgage insurance purpose (excluding closing costs), |
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of not less than $ |
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which statement the Seller(s) hereby agrees to deliver to the Buyer(s) promptly |
64after such appraised value statement is made available to the Seller(s). The Buyer(s) shall, however, have the privilege and option
65of proceeding with the consummation of this Contract without regard to the amount of the appraised valuation made by the
66Federal Housing Commissioner or the Veterans Administration. The appraised valuation is arrived at to determine the maximum
67mortgage the Department of Housing and Urban Development or the Veterans Administration will insure. HUD or VA does not
68warrant the value or the condition of the Property. The Buyer(s) should satisfy itself that the price and condition of the property
69are acceptable.
70 7. THE FOLLOWING FINANCING STATEMENT |
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IS NOT APPLICABLE. |
71Property must appraise at or above sale price or Buyer(s) shall not be obligated to complete the purchase of the Property
72described herein and all earnest money shall be refunded to the Buyer(s).
73 |
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OFFER: This offer expires at |
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if not accepted, countered or rejected by Seller(s) by that time. |
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CLOSING: Closing to be on |
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, or before if mutually agreed to by the parties. |
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7610. POSSESSION: Possession shall be delivered to Buyer(s) (check one box):
77 (A) Upon completion of Closing;
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(B) By separate |
7911. PRORATION: All taxes, rents, utility and other assessments and appropriate condominium or Property Owner's Association
80fees are to be prorated as of the settlement date. Seller(s) represent(s) that all mortgage payments, taxes, escrow accounts and
81condominium or Property Owner's Association fees will be current at Closing date.
8212. HOMESTEAD EXEMPTION: Homestead exemption
83the Property Condition Disclosure Statement.
is or
is not in effect for the current year as represented by
84 13. COMPENSATION: Seller(s) Buyer(s) of property sold under this Contract or through any other negotiated
85agreement agrees to pay as per listing agreement and prior offer of cooperation and compensation. If Broker collects this
86compensation, or any part thereof through legal action, defaulting party agrees to pay court costs including reasonable attorney
87fees. The agreement(s) is extended through the date of this Contract or any other agreement or negotiated contract between the
88parties or the successors, the heirs or the assigns. Any compensation or fee due hereunder shall be earned and payable upon
89presentation of a Buyer(s) ready, willing and able to purchase at any price and terms acceptable to Seller(s), although Broker
90agrees to accept said compensation or fee at closing as an accommodation to party paying compensation.
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Page 2 of 6 |
Copyright ©2008 by Mississippi Association of REALTORS® |
Rev. Date 1/2008 |
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F1 - Contract for the Sale and Purchase of Real Estate |
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Produced with ZipForm™ by RE FormsNet, LLC 18025 Fifteen Mile Road, Clinton Township, Michigan 48035 www.zipform.com
. Upon failure of
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14. TITLE AND CONVEYANCE: |
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General Warranty Deed, |
Special Warranty Deed, |
Assignment of Lease, |
Quit Claim Deed and a certificate of title |
93prepared by an attorney upon whose certificate title insurance may be obtained from a title insurance company qualified to do and doing
94business in the State of Mississippi will be provided by (See Clause 5). Seller(s) shall, prior to closing, satisfy all outstanding mortgages, deeds
95of trust and special liens affecting the subject property which are not specifically assumed by Buyer(s) herein. Title shall be good and
96marketable, subject only to the following items recorded in the Chancery Clerk's office of said county: easements without encroachments,
97applicable zoning ordinances, protective covenants and prior mineral reservations; otherwise Buyer(s), at its option, may either (A) if defects
98cannot be cured by designated Closing date, cancel this Contract, in which case all earnest money deposited shall be returned; (B) accept title as
99is or; (C) if the defects are of such character that they can be remedied by legal action within a reasonable time, permit Seller(s) such reasonable
100time to perform this curative work at Seller(s)' expense. In the event the curative work is performed by the Seller(s), the time specified herein
101for closing sale shall be extended for a reasonable period necessary for such action. Seller(s) represents that the property may be legally used as
102zoned and that no governmental agency has served any notice requiring repairs, alterations or corrections of any existing condition except as
103stated herein.
104 15. MINERAL RIGHTS. Seller(s)will transfer |
ANY |
NONE |
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105rights which it possesses in the real property to the Buyer(s).
OTHERmineral
10616. BREACH OF CONTRACT. Specific performance is the essence of this Contract, except as otherwise specifically provided for herein
107and as further delineated below, and time is of the essence.
108In the event of breach of this Contract by Buyer(s), Seller(s) may at its option (A) accept the earnest money deposit as liquidated damages and
109this Contract shall then be null and void; (B) file suit in any court of competent jurisdiction for damages; or (C) file suit in any court of
110competent jurisdiction for specific performance. If Seller elects to proceed under (A) or (B) in this section, or if Seller(s) proceed(s) under (C)
111and is/are unsuccessful in a suit for specific performance but receive(s) an award of the earnest money deposit and/or damages, Listing Broker
112shall retain or be paid
113compensation due under the Listing Agreement. If Seller(s) elects to proceed under option (C) and secure(s) specific performance, Listing
114Broker shall be paid the full compensation due under the Listing Agreement.
115In the event of breach of this Contract by Seller(s), Buyer(s) may at its option (A) accept the return of its earnest money deposit as liquidated
116damages and this Contract shall be null and void; or (B) file suit in any court of competent jurisdiction for damages, less credit for earnest
117money returned to Buyer(s); or (C) file suit in any court of competent jurisdiction for specific performance. In the event of Seller(s)' breach,
118Listing Broker shall be paid the full compensation due under the Listing Agreement, unless and except this Contract requires Buyer(s) to pay
119all or any portion of said compensation.
120If it becomes necessary to ensure the performance of this Contract for either party to initiate litigation, then the
121pay reasonable attorney fees and court costs in connection therewith to the prevailing party.
12217. ACCELERATION (Due on Sale) CLAUSE. If the note and/or deed of trust or mortgage for any existing loan contains an acceleration
123(Due on Sale) clause, the lender may demand full payment of the entire balance as a result of the transfer. Both parties acknowledge that they
124are not relying on any representation of the other party or Broker with respect to the enforceability of such provision(s).
125 18. SURVIVAL OF CONTRACT. All express representations, warranties and covenants shall survive delivery of the deed unless
126specified to the contrary. All other contractual obligations shall terminate at Closing.
12719. DISCLOSURES.
128SELECT ONE:
129 |
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Buyer(s) acknowledge(s) receipt of the Property Condition Disclosure Statement. |
130OR
131 Seller(s) has/has not delivered the Property Condition Disclosure Statement. This Offer/Contract is contingent upon delivery to
132 Buyer(s) of the Property Condition Disclosure Statement no later than (date)
133the Seller(s) to do so, Buyer(s) may void the Offer/Contract and receive a refund of the earnest money.
134Disclosure of the Parties. The parties acknowledge that Buyer(s) may rely upon the Property Condition Disclosure statement in accordance
135with Sections
136relied upon any statement, representation, omission made or documentation provided by the other party or the broker(s) and salesperson(s) and
137that their representatives, relating to this transaction including, but not limited to, value of the Property, condition of the Property, the decision
138to sell or purchase the Property, the terms or conditions of sale, tax or legal considerations or liability, size or condition of the Property, the
139presence or lack thereof of UFFI insulation, the presence of or lack thereof of Exterior Insulated Finish Systems (E.I.F.S.), previous flooding,
140effect of or location within Mississippi State Tidelands or Federal wetlands, presence of expansive soils, or the presence or absence thereof of
141acceleration clauses or tax or balloon notes. The parties further acknowledge that this Contract form is provided as a courtesy to the parties only.
142It is not required to be used in this transaction and may not meet the specific needs, goals and purposes of the parties, or any of them. If any
143party to this transaction does not fully understand it, or has any question, the party has been advised to, and should, seek advice from a
144competent legal professional before signing.
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Page 3 of 6 |
Copyright ©2008 by Mississippi Association of REALTORS® |
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F1 - Contract for the Sale and Purchase of Real Estate |
Rev. Date 1/2008 |
Produced with ZipForm™ by RE FormsNet, LLC 18025 Fifteen Mile Road, Clinton Township, Michigan 48035 www.zipform.com
14520. INSPECTIONS. SELECT ONE:
146 Buyer(s) and Seller (s) have executed a Home Inspection Addendum as part of this Contract, the same being attached hereto
147and incorporated herein.
148OR
149 Buyer(s) has/have inspected the property and finds the same to be in satisfactory condition and DOES NOT wish to
150perform further inspections prior to Closing or avail itself of the benefit of a home inspection. Buyer(s) accept(s) the Property
151"AS IS WHERE IS" in its condition as of the effective date of this Contract, and acknowledges that neither Seller(s) nor Listing
152Broker, Selling Broker or salespersons associated with this transaction have made any warranty, express, implied or otherwise, as
153to the Property, except such express warranties as the parties agree in writing attached to this Contract shall survive the Closing.
154Buyer(s) understand that it has the right to perform a final
155the terms of the Contract have been fulfilled.
15621. MATERIAL CHANGE.
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(A) Wood Destroying Insect Report: (check box) |
Buyer(s) |
Seller(s) shall furnish and pay for within |
158days before closing approved FHA/VA Wood Destroying Insect Report from a licensed termite company indicating that
159subject Property shows no evidence of termite or other wood destroying insect infestation. If such infestation constitutes
160material damage, the buyer(s) can declare the Contract null and void and have its earnest money refunded. Additionally,
161when any infestation is found on the subject Property Seller(s) can either furnish a warranty of approved treatment and
162correct any structural damage caused by such infestation or deem said repairs as cost prohibitive and declare the contract
163null and void refunding buyer(s)' earnest money.
164(B) Parties acknowledge that Listing and Selling Broker(s), salespersons associated with this transaction, Lender,
165and Attorney(s) have relied solely on the Wood Destroying Inspect Report (WDIR) at Closing. In the event damage is
166found, the Buyer(s) release the Listing and Selling Broker(s), salespersons associated with this transaction, Lender, and
167Attorney(s) from any liability. Both Buyer and Seller acknowledge that the Broker(s) did not recommend any pest control
168company or in any way warrant the inspection or treatment made by the company, and are in no way responsible for
169damage attributable to wood destroying insects.
170(C) Any material change to the subject property shall be disclosed in accordance with the Mississippi Real Estate
171Brokers License Act of 1954 as amended
17222. DAMAGE BY FIRE, ETC. Subject to the provisions of this Clause, this Contract is further conditioned upon delivery
173of the improvements in their present condition, reasonable wear and tear excepted. In the event of damage to the Property or
174improvements before Closing by virtue of causes beyond the parties' control, such as fire, flood, war, acts of God or other causes,
175Seller(s) shall, within three (3) calendar days or as soon thereafter as reasonably possible, notify Buyer(s) in writing of said
176damage, at which time Buyer(s) may, at its option:
177(A) cancel this contract and be entitled to the return of earnest money deposits; or
178(B) waive any objection and proceed to Closing on the terms set forth in this Contract; or
179 (C) seek to reach suitable agreement with Seller(s) as to repair(s), extension of the Closing date and/or other
180adjustments to the Contract as may be agreed upon by the parties. Failure of the parties to reach a suitable agreement within
181five (5) calendar days after election by Buyer(s) to proceed under this option (C) shall automatically and without further
182notice cancel this Contract and entitle Buyer(s) to the return of earnest money deposits.
18323. AGREEMENT OF THE PARTIES. This Contract incorporates all prior agreements between the parties, contains the
184entire and final agreement of the parties and cannot be changed except by their written consent.
18524. DISCLOSURE OF AGENCY RELATIONSHIP. Check one box:
186 (A) The Listing Firm, the Selling Firm, and their salespersons represent the Seller(s) as their Client. The Buyer(s)
187is/are the customer.
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(B) The Listing Firm and its salespersons represent the Seller(s). The Selling Firm and its salespersons represent the |
189Buyer(s).
190 (C) The Listing Firm and its salespersons represent both the Seller(s) and the Buyer(s) as dual agents by mutual
191agreement and all parties have signed and understand the Dual Agency Confirmation form attached and made a part of this
192Contract
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(D) The Selling Firm and its salespersons represent the Buyer(s). The Seller(s) is/are the customer. |
Page 4 of 6
Rev. Date 1/2008
Copyright ©2008 by Mississippi Association of REALTORS®
F1 - Contract for the Sale and Purchase of Real Estate
Produced with ZipForm™ by RE FormsNet, LLC 18025 Fifteen Mile Road, Clinton Township, Michigan 48035 www.zipform.com
19425. EQUAL HOUSING OPPORTUNITY. In accordance with the Federal Fair Housing Law, it is illegal to block bust or to
195discriminate against any person because of race, color, religion, sex, handicap, familial status or national origin in the sale or
196rental of housing or residential lots, in advertising the sale or rental of housing, in the financing of housing, in the providing of
197real estate brokerage services.
198 26. PRIVACY ACT. Signature of Buyer(s) on this Contract or counteroffer is authorization by Buyer(s) to the mortgage
199company processing a loan application to examine the credit worthiness of Buyer(s). Signature of Seller(s) of this Contract or
200counter offer is authorization to any mortgage company to release any information pertinent to the mortgage secured by the
201subject Property to foresaid brokers or salespersons and the closing attorney.
20227. ATTACHMENTS:
203Property Condition Disclosure Statement
204Home Inspection Addendum
205Dual Agency Confirmation
206
207Possession Agreement
208Property Issues Addendum
Yes
Yes
Yes
Yes
Yes
Yes
No Mandatory Arbitration Addendum
No Other
No Other
No Other
No Other
No Other
Yes
Yes
Yes
Yes
Yes
Yes
No
No
No
No
No
No
20930.
210was built prior to 1978 is notified that such subject property may present exposure to lead from
211young children at risk of developing lead poisoning. Lead poisoning in young children may produce permanent neurological
212damage, including learning disabilities, reduced intelligence quotient, behavioral problems, and impaired memory. Lead
213poisoning also poses a particular risk to pregnant women. The Seller of any interest in residential real property is required to
214provide the Buyer with any information on
215possession and notify the Buyer of any known
216paint hazards is recommended prior to purchase.
21729. SPECIAL PROVISIONS & CONTINGENCIES:
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23630. MISCELLANEOUS. (A) Neither party shall be bound by any terms, conditions, oral statements, warranties or representations
237not herein contained. (B) Broker's liability to Buyer(s) and Seller(s) in this transaction shall not exceed the amount it has received
238as commission. (C) Each party acknowledges and hereby affirms that it has read and understands this Contract. (D) This Contract
239shall not be assignable by either party without consent of the other party.
24031. NOTICE. Any notices required or permitted to be given under this Contract shall be delivered by hand or mailed by certified
241or registered mail, return receipt requested, in a postage prepaid envelope; by nationally recognized overnight carrier service; by
242facsimile with receipt acknowledgment (if the fax number is listed below); or by email (if the email address is listed below), at
243Sender's option, and addressed as follows:
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Page 5 of 6 |
Copyright ©2008 by Mississippi Association of REALTORS® |
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F1 - Contract for the Sale and Purchase of Real Estate |
Rev. Date 1/2008 |
Produced with ZipForm™ by RE FormsNet, LLC 18025 Fifteen Mile Road, Clinton Township, Michigan 48035 www.zipform.com
244If to Seller(s):
245Address:
246Facsimile:
247Email:
248If to Buyer(s):
249Address:
250Facsimile:
251Email:
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The Sellers have countered this offer subject to the terms of the attached Counter Offer No. |
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The Sellers have rejected this offer and make no counter offer this the |
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and a copy hereof received: |
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A copy of this rejection has been received this the |
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273 |
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275 |
Selling Agency |
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276 |
Business Phone |
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277 |
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278 |
Business Phone |
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NOTE: This form is provided by MAR to its members for their use in real estate transactions and is to be used as is. By using this form, you agree and covenant not to alter, amend, or edit said form or its content, and agree and acknowledge that any such alteration, amendment or edit of said form is done at your own risk. These forms are provided with the understanding that the publisher does not engage in rendering legal, accounting, or other professional services.
|
Page 6 of 6 |
Copyright ©2008 by Mississippi Association of REALTORS® |
|
F1 - Contract for the Sale and Purchase of Real Estate |
Rev. Date 1/2008 |
Produced with ZipForm™ by RE FormsNet, LLC 18025 Fifteen Mile Road, Clinton Township, Michigan 48035 www.zipform.com
Form Specifications
| Fact Name | Description |
|---|---|
| Form Purpose | This form serves as a contract for the sale and purchase of real estate in Michigan. It is provided as a courtesy and is not mandatory for use. |
| Governing Law | The form is governed by the Michigan Compiled Laws, specifically under the Michigan Real Estate License Act. |
| Contingencies | The contract includes contingencies for loan approval and homeowner's insurance, which must be satisfied within specified timeframes. |
| Earnest Money | Earnest money is required and must be deposited with a broker or trustee. This deposit is held in trust until the transaction is completed or terminated. |
| Closing Timeline | The closing date is negotiable but must occur on or before a date mutually agreed upon by the parties involved. |
| Disclosure Requirements | Buyers must receive a Property Condition Disclosure Statement, and the contract may be contingent upon its delivery. |
Michigan Real Estate Buy: Usage Guidelines
Filling out the Michigan Real Estate Buy form is a crucial step in the home buying process. It’s essential to complete this form accurately to ensure a smooth transaction. Below are the steps to guide you through the process of filling out this form effectively.
- Enter the date of the contract in the designated space.
- Fill in the names of the Buyer(s) who agree to purchase the property.
- Provide the names of the Seller(s) who agree to sell the property.
- Describe the property being sold, including the street address, city, and zip code.
- Include the legal description of the property, along with the county name.
- List any items that are included with the property, ensuring to note any exclusions.
- Enter the tax parcel number associated with the property.
- State the total purchase price and the cash down payment amount.
- Indicate how the balance will be paid (cash or loan) and check the appropriate boxes for the type of loan.
- Complete the loan and insurance contingency section, noting the deadlines for applications and approvals.
- Specify the amount of earnest money to be deposited and the name of the broker or trustee holding it.
- Mark who will be responsible for various costs of sale by filling in the appropriate letters.
- Indicate whether VA/FHA financing is applicable and provide necessary appraised value details.
- Set the expiration time for the offer and the closing date.
- Decide when possession of the property will be delivered to the Buyer(s).
- Fill in details regarding proration of taxes and other fees.
- Indicate if the homestead exemption is in effect for the current year.
- Complete the compensation section for the broker involved in the transaction.
- Specify the type of deed that will be used for the transfer of title.
- Fill in the mineral rights section, indicating what rights will be transferred.
- Review and complete the breach of contract section, ensuring all options are clear.
- Fill out the inspections section, indicating if any inspections have been completed.
- Complete the section regarding damage to the property prior to closing.
- Finalize the agreement of the parties and check the appropriate agency relationship box.
- Sign and date the form where indicated.
After completing the form, ensure that all parties involved review the document for accuracy. It's advisable to consult with a legal professional if there are any uncertainties. This diligence will help protect everyone’s interests as the transaction moves forward.
Your Questions, Answered
What is the Michigan Real Estate Buy form?
The Michigan Real Estate Buy form is a contract used for the sale and purchase of real estate in Michigan. It outlines the terms and conditions agreed upon by the buyer and seller, including the purchase price, property description, and contingencies related to financing and inspections. While it serves as a helpful guideline, it is not mandatory and may not suit every transaction.
What should I do if I don’t understand the form?
If you do not fully understand the Michigan Real Estate Buy form or have questions about its contents, it is important to seek advice from a qualified legal professional. They can help clarify any terms and ensure that your rights and interests are protected before you sign the contract.
What is earnest money and how does it work?
Earnest money is a deposit made by the buyer to demonstrate their commitment to purchasing the property. This amount is held in trust by a broker or trustee and is usually applied to the purchase price at closing. If the buyer backs out of the deal without a valid reason, they may forfeit this deposit to the seller.
What are the contingencies in the contract?
Contingencies are conditions that must be met for the contract to be valid. In the Michigan Real Estate Buy form, common contingencies include securing financing and obtaining homeowner's insurance. If these conditions are not met within the specified timeframes, the seller may choose to void the contract and return the buyer's earnest money.
When does the buyer receive possession of the property?
The buyer typically receives possession of the property upon closing, unless otherwise agreed upon in the contract. If a separate Pre-Closing Possession Addendum is attached, possession may occur before the official closing date.
What happens if the property is damaged before closing?
If the property is damaged before closing due to unforeseen circumstances, such as a fire or flood, the seller must notify the buyer within three days. The buyer then has options: they can cancel the contract and receive their earnest money back, proceed with the closing, or negotiate repairs and adjustments with the seller.
Are there any disclosures required in this contract?
Yes, the seller is required to provide a Property Condition Disclosure Statement to the buyer. This document outlines the condition of the property and any known issues. If the seller fails to provide this disclosure, the buyer may have the right to void the contract and receive a refund of their earnest money.
Can the terms of the contract be changed after it is signed?
Once the contract is signed, it represents the final agreement between the parties. Any changes must be made in writing and agreed upon by both the buyer and seller. Verbal agreements or changes are not enforceable.
What should I do if I have special provisions or contingencies?
If you have specific provisions or contingencies you want included in the contract, be sure to write them in the designated section of the form. Clearly outlining these items helps protect your interests and ensures that both parties are aware of any additional terms agreed upon.
Common mistakes
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Missing Dates: Failing to fill in the contract date can lead to confusion about when the agreement takes effect.
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Incomplete Legal Description: Not providing a full legal description of the property can cause issues with title transfer.
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Improper Purchase Price: Entering an incorrect purchase price can complicate financing and negotiations.
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Ignoring Contingencies: Overlooking contingencies for financing and insurance can put the buyer at risk if they cannot secure a loan.
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Earnest Money Errors: Not specifying the correct amount or method of payment for earnest money can delay the transaction.
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Neglecting Inspection Clauses: Failing to check the appropriate boxes regarding inspections may lead to unexpected issues after closing.
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Incorrect Closing Details: Not clearly stating the closing date or conditions can lead to misunderstandings.
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Missing Signatures: Forgetting to sign the contract can render it invalid, leaving both parties without a binding agreement.
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Ignoring Disclosure Requirements: Not acknowledging the Property Condition Disclosure Statement can lead to legal disputes later on.
Documents used along the form
When engaging in a real estate transaction in Michigan, several additional forms and documents often accompany the Michigan Real Estate Buy form. These documents help clarify various aspects of the transaction and protect the interests of both buyers and sellers. Below is a list of commonly used forms in conjunction with the buy form.
- Property Condition Disclosure Statement: This document provides buyers with essential information about the property's condition, including any known issues or repairs. Sellers must disclose material defects to ensure transparency.
- Home Inspection Addendum: If buyers wish to conduct a home inspection, this addendum outlines the terms and conditions related to the inspection process, including timelines and responsibilities.
- Lead-Based Paint Disclosure: Required for homes built before 1978, this disclosure informs buyers about potential lead hazards and requires sellers to provide any known information regarding lead-based paint.
- Possession Agreement: This document specifies when the buyer will take possession of the property. It can include terms for pre-closing possession or immediate occupancy upon closing.
- Dual Agency Confirmation: If the same agent represents both the buyer and seller, this form confirms the dual agency relationship and ensures that both parties understand the implications.
- Mandatory Arbitration Addendum: This addendum outlines the requirement for arbitration in case of disputes, providing a framework for resolving conflicts outside of court.
- Property Issues Addendum: This form addresses specific issues related to the property that may not be covered in other documents, such as easements, zoning restrictions, or neighborhood disputes.
Utilizing these documents alongside the Michigan Real Estate Buy form can streamline the buying process and help ensure that all parties are informed and protected throughout the transaction. Always consider consulting a legal professional for personalized guidance based on your specific situation.
Similar forms
The Michigan Real Estate Buy form shares similarities with several other real estate documents. Each document serves a specific purpose in the buying and selling process, ensuring that both parties are protected and informed. Below is a list of these similar documents and their key characteristics:
- Purchase Agreement: This document outlines the terms and conditions of the sale, including the purchase price and closing date, much like the Michigan Real Estate Buy form.
- Real Estate Sale Contract: Similar to the Michigan form, this contract specifies the obligations of both the buyer and seller, including contingencies and disclosures.
- Offer to Purchase: This document allows the buyer to formally propose a purchase to the seller, similar to how the Michigan form initiates the transaction.
- Lease Agreement: While primarily for rental properties, this document also details terms and conditions, akin to the obligations outlined in the Michigan Buy form.
- Title Commitment: This document assures the buyer that the title is clear and marketable, similar to the title provisions found in the Michigan form.
- Property Condition Disclosure Statement: This statement informs buyers of the property's condition, aligning with the disclosure requirements in the Michigan form.
- Closing Statement: This document summarizes the financial aspects of the transaction at closing, which complements the financial details provided in the Michigan Buy form.
Dos and Don'ts
When filling out the Michigan Real Estate Buy form, it is essential to approach the task with care and attention to detail. Here is a list of things to do and avoid:
- Do read the entire form thoroughly before filling it out to ensure understanding of all terms and conditions.
- Do provide accurate and complete information, especially regarding the property details and buyer/seller information.
- Do consult a legal professional if there are any uncertainties or questions about the form or its implications.
- Do ensure that all parties involved sign the document where required to validate the agreement.
- Don't rush through the process; take the time to review each section carefully.
- Don't leave any sections blank unless specifically instructed to do so; incomplete forms can lead to delays or complications.
- Don't ignore deadlines for submitting applications for loans or insurance, as these are critical for the transaction to proceed smoothly.
Misconceptions
- Misconception 1: The Michigan Real Estate Buy form is mandatory for all transactions.
- Misconception 2: Using this form guarantees a successful transaction.
- Misconception 3: The form protects buyers from all potential issues.
- Misconception 4: The seller is responsible for all repairs before closing.
- Misconception 5: Earnest money is always refundable.
- Misconception 6: The form includes all necessary disclosures about the property.
- Misconception 7: Once signed, the contract cannot be changed.
This form is actually provided as a courtesy. It is not required for any real estate transaction and may not suit everyone's specific needs.
Using the form does not ensure that the transaction will go smoothly. Each party should still seek legal advice to understand their rights and obligations.
While the form includes various contingencies, it does not cover every possible issue. Buyers should conduct their own inspections and research.
Unless specifically stated in the contract, sellers are not obligated to make repairs. Buyers should clarify this before signing.
Earnest money can be forfeited if a party wrongfully terminates the contract. It’s essential to understand the conditions surrounding this deposit.
Not all disclosures may be included in the form. Buyers must ensure they receive all relevant information, such as the Property Condition Disclosure Statement.
The contract can be amended if both parties agree in writing. Flexibility is possible as long as both sides consent to the changes.
Key takeaways
Key Takeaways for Using the Michigan Real Estate Buy Form
- The form is optional and may not suit everyone's needs. Parties should consider their specific circumstances before using it.
- Consult a legal professional if there are any uncertainties or questions about the contract. Understanding the terms is crucial before signing.
- Earnest money is required and must be deposited with a broker or trustee. This amount can be forfeited if the contract is wrongfully terminated by a party.
- Contingencies for financing and insurance must be met within specified timeframes. Failure to do so may allow the seller to void the contract.
- All agreements and disclosures must be documented. Ensure that any changes or additional agreements are made in writing to avoid misunderstandings.