Consumer s Guide to the AGreement of sale. for use with 2015 revisions to PAr form Asr A consumer service of the Pennsylvania Association of realtors

Transcription

1 Consumer s Guide to AGreement of sale for use wi 2015 revisions to PAr form Asr SA M PL E A consumer service of Pennsylvania Association of realtors

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3 Consumer s Guide to AGreement of sale ACknowledGment of receipt Consumer s Guide to Agreement of sale has been developed by Pennsylvania Association of realtors to help consumers who may be interested in buying or selling a home better understand major terms of PAr standard Agreement for sale of real estate. is Guide is not a substitute for professional advice and counsel from a real estate broker and/or an attorney representing consumer. signing is acknowledgment does not create any contractual relationship between listed broker and signing consumer. Any business relationship between broker and consumer will be established in a separate written agreement between broker and consumer. i acknowledge at i have received Consumer s Guide to Agreement of sale. Print name signed date Print name signed date Print name signed date Broker (ComPAny name) Provided By date -Consumer Copy - Consumer s Guide to AGreement of sale ACknowledGment of receipt Consumer s Guide to Agreement of sale has been developed by Pennsylvania Association of realtors to help consumers who may be interested in buying or selling a home better understand major terms of PAr standard Agreement for sale of real estate. is Guide is not a substitute for professional advice and counsel from a real estate broker and/or an attorney representing consumer. signing is acknowledgment does not create any contractual relationship between listed broker and signing consumer. Any business relationship between broker and consumer will be established in a separate written agreement between broker and consumer. i acknowledge at i have received Consumer s Guide to Agreement of sale. Print name signed date Print name signed date Print name signed date Broker (ComPAny name) Provided By date -Broker Copy -

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5 table of Contents Getting started...6 making an offer...6 Agreement of sale...6 everying is negotiable...6 what Buyer should Bring...7 Parties...7 Property...7 who are Brokers?...8 is Agreement...8 Purchase Price and deposits...8 A Good fai deposit...8 escrow Accounts...9 seller Assist...9 settlement and Possession...9 settlement date...9 taxes...10 how Are taxes Calculated?...10 Possession...10 date/time is of essence...10 Acceptance deadline...10 date and times...11 Zoning Classification...11 fixtures and Personal Property...11 mortgage Contingency...12 what do Pre-Qualified and Pre-Approved mean?...12 mortgage Amount...13 mortgage term...13 loan-to-value ratio...13 type of mortgages...13 mortgage lenders...14 mortgage rates...14 fixed rate vs. Adjustable/variable rate loans...14 what are Points?...14 two important deadlines...15 Conditional mortgage Commitments...15 lender requirements...15 mortgage Application Checklist for Buyers...16 what if loan is not Approved?...16 Change in Buyer s financial status...16 seller representations...17 seller disclosure law...17 Public and/or Private notices and Assessments...18 waiver of Contingencies...18 due diligence/inspections...18 Are inspections required?...19 how long will inspections take?...19 Pennsylvania Association of realtors

6 home/property and environmental hazards...19 wood infestation...20 deeds, restrictions and Zoning...21 water service...21 radon...21 on-lot sewage...21 Property and flood insurance...22 Property Boundaries...22 lead-based Paint hazards...22 inspection Contingency...22 real estate taxes and Assessed value...23 notices, Assessments and municipal requirements...23 notices and Assessments...23 Certificate of occupancy or use and occupancy Permit...24 Condominium/Planned Community (homeowner Association) resale notice...24 A word to wise...24 title, surveys and Costs...25 title to Property...25 maintenance and risk of loss...25 home warranties...26 recording new deed...26 Assignment...26 Governing law, venue & Personal Jurisdiction...27 foreign investment in real Property tax Act of 1980 (firpta)...27 notice regarding Convicted sex offenders (megan s law)...27 representations...27 default, termination and return of deposits...28 mediation...28 release...29 real estate recovery fund...29 Communications wi Buyer and/or seller...29 headings...29 special Clauses...29 signing Agreement...30 miscellaneous Broker s services...30 let your realtor Be your Guide...30 notes and Questions...31 standard Agreement of sale (Asr) Pennsylvania Association of realtors 2015

7 Welcome to Consumer s Guide to Agreement of Sale. This booklet is designed to help you to better understand Standard Agreement for Sale of Real Estate, which is produced, copyrighted and distributed by Pennsylvania Association of Realtors ( PAR ). is form, often just referred to as Agreement, is used by most realtors across state, and by many attorneys as well. Because it is form at sets out all terms agreed to by buyer and seller, it may be single most important form in your transaction. it is very important to read and understand all terms and conditions in Agreement. is booklet covers many common questions about form, but it is not a substitute for professional help of a realtor and an attorney. if you don t understand someing, ask your realtor and/or attorney for more information before signing Agreement. Be sure to read notice paragraphs located roughout Agreement. some of notices are required by law or regulation, while ors are more informational, but all contain information at will help you to better understand content of Agreement. As you go rough Guide, is icon will alert you to check out certain notices at relate to a particular paragraph or clause in Agreement, or bring your attention to a certain topic. And remember, as you go rough Agreement of Sale, ask your Realtor (pronounced REAL-tor ) if you have any questions. what s a realtor? many consumers believe at term realtor is used for all real estate practitioners. in fact, only real estate professionals who belong to national Association of realtors (as well as state and local Association) may use term realtor. As a condition of membership, all realtors are bound by a Code of eics at goes above and beyond requirements of state licensing law. Ask your real estate agent if he or she is a realtor. Pennsylvania Association of realtors

8 GETTING STARTED wher you ve done it once, a dozen times, or never before, a real estate transaction can be a terrifying, stressful, and exhilarating experience. good news is at by time you read is booklet you ve already gotten over some of biggest hurdles in whole process. As a seller, you ve made decision to put your home on market; as a buyer, you ve committed to home buying process and may have even seen a few houses. now at ings are moving along, next big step for a buyer is to make an offer on a particular property. But when you sit down in front of is 13-page form filled wi real estate jargon and legalese, how can you be sure you understand what it all means? best advice is to arm yourself wi a realtor and/or attorney who can guide you rough process, explain your options, and answer your questions. reviewing is booklet Before making an offer or considering an offer from a buyer should address many of questions you re likely to have. where you still need more information, you will have plenty of time to ask your realtor to clarify ings before getting into stress of negotiations. Making an Offer Buyers should never make an offer on a property in haste wiout fully inking rough all of ir options. After all, if offer is accepted it now turns into a legally binding contract and may not be easy to get out of. But once a buyer has decided to pursue a particular property, it is wise to start process as soon as possible. it can take as long as two hours to complete Agreement of sale and re are many decisions at must be made during at time. process of completing Agreement of sale will often take place at realtor s office. wi use of computer-generated forms, however, Agreement can be filled out and even signed from almost anywhere - buyers might not even be in same room as realtor while y re filling it out. if you have particular needs in is regard (for example, you re buying a home in anor area of state and can t easily travel re for more an a day or two at a time), speak to your realtor about technology available in his or her office. The Agreement of Sale in some areas of country, a buyer might make an offer by submitting a form wi only a few terms - sometimes one page or less. After buyer and seller agree on is framework, seller takes house off market while parties negotiate all or terms and conditions at will apply. in Pennsylvania, however, vast majority of offers are made by presenting seller wi a completely filled out Agreement of sale at lists terms and conditions requested by buyer. buyer and seller negotiate complete terms of Agreement, and if bo sign off on Agreement, result is a legally binding contract. taking a couple of hours to fill out an entire agreement for a property you might not actually end up buying might seem like a lot of effort, and it is. does it take more time and effort to make an offer wi such complete terms? yes. experience has shown, however, at effort helps bo buyer and seller by laying out All terms and conditions desired by bo parties so re are fewer surprises during transaction. Everying is Negotiable while completing Agreement of sale you will make many decisions about terms. terms are details and specifics of Agreement, which need to be acceptable to bo buyer and seller. Alough Agreement contains a great deal of pre-printed text, perhaps most important phrase for bo buyer and seller to remember is at everying is negotiable. some terms to be negoti- 6 Pennsylvania Association of realtors 2015

9 ated can include: purchase price, deposit amounts, date of settlement, items to be included or excluded, financing arrangements, and property inspections, just to name a few. remember at most of time frames for performing under contract are also negotiable, even ough certain time frames are often pre-printed in text for convenience. to protect yourself legally, you may want to have your attorney review Agreement before you sign it. What Buyer Should Bring Buyers will need to have certain items and information readily available when filling out Agreement of sale. some of se items include: your checkbook, if you are providing a deposit on property. information about your finances. seller will almost always want to verify a buyer s financial ability to buy or obtain a mortgage before deciding to accept Agreement. depending on practice in your market, a mortgage preapproval may be sufficient. in or markets sellers might ask buyers to fill out a separate financial information form. information regarding available funds. you will want to make sure you have enough money for your deposit and for settlement. All buyers! if you and or people (for example, your spouse or business partner) are buying a property toger, you will need to complete and sign Agreement toger. if you have any questions about what to bring wi you when filling out Agreement, ask your realtor. THE PARTIES when identifying buyer and seller in transaction, it is very important to list All buyers and All sellers, preferably by name listed on deed (for sellers) or name to be put on deed (for buyers). for example, if a husband and wife own a property jointly, bo names should be listed in Agreement. if property is deeded only to wife, ough, only her name would be listed. similarly, if property is owned by a business entity, name of at business should be listed. on seller s side, listing all sellers helps to make sure at all owners of record actually sign Agreement. if property is owned by several individuals and one fails to sign Agreement, Agreement (and possibly transaction) may not be valid. Buyers, attorneys and title companies will often use listed buyers names to prepare a new deed. if buyers forget to list someone who should be on deed, it may hold up transaction or could require making is legal change after fact at additional expense. THE PROPERTY next part of Agreement is a description of property to be purchased. in most cases property will be identified bo by street address, including municipality, ZiP code, county, and school district, as well as by a more orough legal description of property. if re is any doubt or confusion about actual location of property or property boundaries, talk to your realtor about obtaining a survey. many buyers are interested in living in a particular ZiP code or sending ir children to school in a specific school district, so bo buyer and seller are encouraged to double-check is information for accuracy. Pennsylvania Association of realtors

10 WHO ARE THE BROKERS? boxes at bottom of front page of Agreement contain information at identifies broker or brokers who are providing real estate services in transaction and ir relationship(s) to buyer and seller. it is very important at you understand relationship you have wi each broker and legal duties at each broker owes you (or doesn t owe you). remember: unless you have entered into a written agency contract creating a legal relationship between you and broker, broker may not be representing your interests and may be representing or party. if you have a question about how se relationships work, review Consumer notice ( first form realtor gave you) and ask realtor to clarify his or her role in transaction. THIS AGREEMENT first section of Agreement states date Agreement was first presented as an offer. date in is paragraph is generally not same as acceptance date, or execution date - date a valid contract exists. is date is simply used as a convenience to identify when buyer s offer was first presented and will be particularly helpful if more an one Agreement is submitted at different times. PURCHASE PRICE AND DEPOSITS purchase price is first of many terms stated in Agreement. while many buyers and sellers assume at is is most important part of Agreement, re are many or negotiable terms at can be just as important as purchase price. to make your offer as attractive as possible to seller, be sure to pay attention to all terms in Agreement - don t focus only on purchase price. how much should a buyer offer to pay for property? which offer should sellers accept? se are decisions at depend on many different factors. Buyers and sellers will need to consider ings such as wher re are or offers, recent sale prices of similar homes, how long property has been on market, and motivations of buyer and seller. your realtor can help you review issues to consider, but realtor can t make final decision for you. A Good Fai Deposit Buyers are almost always expected to make a good fai deposit (sometimes called hand money, earnest money or down money ) on property. deposits can be given in one large deposit or in two (or more) steps. when a buyer makes an offer, an initial deposit is usually given to seller along wi Agreement, or shortly reafter depending on how Agreement is delivered to seller. in some markets, if seller accepts offer a second deposit is due wiin a short time after acceptance. in or markets, it is not uncommon for re to be a ird deposit at some point later in transaction. however y are paid, deposits will be credited toward total purchase price and/or closing costs at time of settlement. amount and timing of deposits is often determined by local custom. Ask your realtor about what is customary in your area, keeping in mind at se are always negotiable issues. note: depending on circumstances, if a buyer backs out of an accepted Agreement buyer may forfeit any deposits. offering a higher deposit could make buyer s offer look more serious to seller but it also means more risk to buyer. 8 Pennsylvania Association of realtors 2015

11 Agreement allows buyer to pay by cashier s check, wired funds or personal check if a deposit is being made 30 or more days from settlement date. if a deposit is being made wiin 30 days of settlement date, buyer must pay by cashier s check or wired funds, not by personal check. se specifications can be modified if Buyer and seller agree on a change. Escrow Accounts in most markets a buyer s deposits are held by realtor representing seller, alough it may be practice in or markets for realtor representing buyer to hold it. whichever realtor holds deposits, y will be held in a special bank account called an escrow account. when completing Agreement, parties will determine who will be holding deposit. escrow ACCount: An account, separate from a broker s regular business account, at a broker is required to establish to hold deposit monies until a transaction is completed or terminated. re are laws and regulations governing how brokers must handle money deposited in ir escrow accounts. one of ose rules is at broker generally cannot release deposit money to eir buyer or seller if re is any dispute over how money is to be distributed. if buyer or seller breaks Agreement after it has been signed, broker is not legally permitted to give deposit money to eir party unless buyer and seller bo agree on who should get deposit money. two primary exceptions to is rule are at a broker must distribute deposits according to terms of (1) a final court order (re is a lawsuit and court directs payment); or (2) a pre-agreement between parties as to what happens if re is a dispute at isn t resolved. for example, Agreement says in Paragraph 26(C) at if buyer and seller can t resolve a dispute wiin 180 days buyer gets deposit back unless a lawsuit has been filed. SELLER ASSIST some sellers may be willing to pay part of buyers costs incurred to obtain mortgage loan or to settle on property. se arrangements must be clearly spelled out in Agreement. it is important to know wher your lender has a limit on how much sellers are allowed to pay and what at limit is. is limit can vary between lenders or even between loan products from same lender. SETTLEMENT AND POSSESSION Settlement Date Choose settlement date very carefully. Among or factors, settlement date will depend upon time it will take to complete any desired property inspections and to obtain a mortgage loan, if one is necessary. buyer will often consider seller s preferred settlement date. As simple as it seems, it is a good idea to have a calendar handy when dealing wi Agreement of sale. when picking a settlement date it is best to avoid weekends and holidays, as well as dates wi or conflicts such as vacations or work deadlines. Also, remember at settlements can often take several hours to a half day, so don t pick a day inking at you can just squeeze it in at lunch. At settlement buyer will receive a copy of deed. original deed will be recorded in office of recorder of deeds for county where property is located. recorder will stamp deed wi date and location of recording and will send deed to buyer. re is more information on deeds and titles later in is booklet. title: right to or ownership of land, or evidence of ownership of land. deed: A written document at, when executed and delivered, transfers ownership, or title, to real estate. Pennsylvania Association of realtors

12 Taxes in Pennsylvania, a real estate transfer tax is assessed when a property is purchased. state imposes a tax on all transactions and re may be a local transfer tax on transaction as well. transfer taxes may range from a minimum of 1% to 4% or more of purchase price. if Agreement is being assigned to anor buyer, it may affect transfer tax on property. talk to an attorney if you are planning on assigning Agreement. in most areas practice is to divide payment of transfer taxes equally between buyer and seller, but is is negotiable. real estate property taxes and or obligations such as condominium or homeowner association fees, or fees and rents, and interest on mortgage loan assumptions are prorated at settlement. is means at seller is responsible only for portion of taxes and or assessments up to and including day of settlement, and buyer is responsible for paying taxes and fees after settlement date. if seller has already paid se bills, adjustment will generally require buyer to reimburse seller for buyer s portion. review all tax bills carefully to be sure you understand what taxing periods are covered by each. for example, all municipal governments base ir bills on a tax year at runs from January 1 to december 31; most school districts have a tax year of July 1 to June 30. How are Taxes Calculated? By law, transfer taxes are a fixed percentage of purchase price of property. Check wi your realtor to find out what transfer tax is in your community. local property taxes are set by municipality and school district and are based on a percentage of assessed value of property. Property taxes may change each year based on millage set by municipality and assessed value of your property. Possession unless orwise agreed to, buyer can expect to receive deed and keys to vacant property at settlement. of course, vacant doesn t necessarily mean at re will be noing left in property. if parties have agreed at seller will leave certain items (appliances or furniture, for example), buyers should check for se items during pre-settlement walk rough. At same time, it is understood at seller is responsible for removing all personal items at haven t been negotiated. at means seller is not permitted to just leave behind trash or any or items at y don t want in ir new home. sometimes parties will agree to let buyer move in before settlement or to let seller stay after settlement. make sure is is in writing, just like rest of Agreement. issues like fees for is extra time of possession and who is responsible for any damages are best dealt wi well before settlement. PAr publishes forms covering many of issues involved in bo seller and buyer occupancy. if property is tenant-occupied, make sure at leases are properly transferred from seller to buyer and at seller has taken care of any remaining obligations to tenants. re is a PAr form for is purpose as well. DATES/TIME IS OF THE ESSENCE Acceptance Deadline A buyer and seller will usually want to insert some sort of a deadline for m to agree to terms of Agreement. if Agreement is not accepted by deadline and deadline is not extended, offer will become void. Consider factors such as local custom, buyer s or seller s sense of urgency regarding transaction and schedules of parties and brokers when setting is deadline. 10 Pennsylvania Association of realtors 2015

13 Dates and Times roughout Agreement re are many spots at establish time frames for completing certain acts (for example, ordering and delivering inspection reports or making a mortgage application). Considering what needs to be accomplished and selecting realistic time frames for each task is CruCiAl. keep in mind at your realtor probably has a good idea about how long it usually takes to do se ings in your market area. Alough some of se times are pre-printed in Agreement, y are by no means set in stone. if you need a different period of time to complete a certain part of Agreement re is room for you to cross out pre-printed numbers and put in a different number. keep in mind at buyer and seller must agree to any changes. Agreement of sale provides at time is of essence. is is a technical phrase meaning at if you don t do someing by an agreed upon date you can lose certain rights or be in default of Agreement. for is reason, it is critical at dates in Agreement be strictly followed, including time for settlement. time for performing under Agreement doesn t start until parties have reached a final understanding on all terms of contract. it is important at every change to Agreement be initialed and dated by bo parties, so at everyone can keep track of when to start clock, it is important at every change to Agreement be initialed and dated by bo parties. ZONING zoning classification is required in an Agreement of sale unless property is in an area primarily zoned to permit single family dwellings. note: if buyer plans to change use of property, it may be wise to make purchase contingent on zoning. PAr Zoning Approval Contingency (PAr form ZA) gives buyers right to check if future use is permitted, or to apply for a change of zoning. later, in inspections paragraph of Agreement, buyers will be asked to decide wher y want to check present use or make Agreement conditional on a change in use. if buyer has certain zoning needs, buyer should investigate zoning issues at relate to ose needs. sellers and agents should be careful to not guess at what uses would be allowed. FIXTURES AND PERSONAL PROPERTY re will often be certain fixtures and personal property (appliances or lighting fixtures, for example) included wi property as part of sale. if specific items are to be included or excluded, y must be clearly listed in Agreement. Any information provided rough multiple listing service (MLS) or any items identified in Seller s Property Disclosure Statement don t count if y are not also listed in Agreement. Agreement contains a list of personal property items at are commonly included in sale. it is important for buyers and sellers to carefully review is list to make sure at everying at should stay is included and everying at should go is excluded. Any item of personal property at isn t included in Agreement in writing is not part of transaction and does not stay wi property. if re is any confusion about transaction, written terms of Agreement will decide what stays and what goes. Pennsylvania Association of realtors

14 MORTGAGE CONTINGENCY Buyers should oroughly assess ir financial situation before setting a price range for ir search and looking at properties. most buyers will require mortgage financing to buy a home, so most will elect to include a mortgage contingency in Agreement. in short, contingency states at buyer won t have to move forward wi purchase if a good fai application for mortgage financing is denied. re are many financial aspects to a real estate purchase. se include deposits, up-front costs (such as inspections), settlement costs, purchase price and financial reserves (for repairs and or expenses after moving in). Buyers should be sure y fully understand how each element factors into ir financial status and how y will find money to cover each (savings, gift, mortgage, etc.). sellers may want to ask for certain proof at buyers have, or can get, resources to purchase ir home. to help seller judge wher a particular buyer is likely to be able to afford property, Agreement asks buyers to be fairly specific in stating what ir mortgage requirements will be. remember: Bo buyers and sellers must receive a copy of estimated closing costs before signing Agreement of sale. Buyers should double-check estimated cost sheet before signing to be sure y are able to afford listed costs. What do Pre-Qualified and Pre-Approved Mean? most buyers will have a pre-qualification or pre-approval letter from a lender indicating approximately how much buyer can afford to pay for a house. Alough is is no guarantee at buyer will eventually be approved for financing, it is helpful for buyers to know what price range y should be focusing on and to let sellers get an idea of buyer s financial ability. PRE-QUALIFICATION is when lender looks at buyers financial status to estimate mortgage loan amount for which y might qualify. it is based on documentation provided by buyer and is usually free. Pre-qualification may help buyers determine price range y can afford and can be helpful at beginning of a search. PRE-APPROVAL is more detailed and takes place when buyers are closer to making an offer on a house. for a pre-approval lender will verify buyers earnings and financial situation often by obtaining a credit report to determine wher or not to lend money. once buyers are pre-approved lender will provide a letter stating maximum amount buyer would likely be approved to borrow. Pre-approval may make buyers look stronger in eyes of a seller and improve chances of coming to an agreement on purchase price. note: se terms may vary from lender to lender; buyers should be sure y understand ir lender s obligations to m if y are pre-qualified or pre-approved. remember at neir of se is same as having a full mortgage commitment. re are many different mortgage products available rough various lenders. in some cases se mortgages might involve multiple loans - a first and second mortgage, for example, or a mortgage loan wi an accompanying line of credit. Buyers would be well served to talk to ir realtor or a financing expert to determine what types of loans might be attractive based on ir current financial status. Aside from asking buyer to identify if multiple loans will be involved, Agreement also asks for information regarding mortgage amount, term of loan(s), type of loan(s), mortgage lender(s), loan-to-value ratio, interest rate(s), and points. 12 Pennsylvania Association of realtors 2015

15 Mortgage Amount when judging ability of a certain buyer to purchase ir home, sellers will look at wher buyer has financial streng to afford payments on mortgage amount being sought. in most transactions, mortgage amount is calculated by taking full purchase price of property and subtracting any deposits already paid by buyer along wi any or cash buyer expects to bring to settlement. in some cases, ough, buyer may have special needs. most common of se scenarios would be a purchase where buyer also wants to borrow additional money to cover closing costs or to pay for repairs or renovations. se types of loans are also only available rough a limitied number of loan programs, so sellers should consider wher a buyer would qualify for ose programs. Mortgage Term term of mortgage is leng of time it will take to repay loan in full. Alough traditional loan is 30 years, or loans are available for 15 years, 20 years, or even 40 years. keep in mind at a monly payment can vary greatly depending on term of loan longer term, lower payment. term of loan can also affect interest rate and buyer s ability to qualify for loan. Loan-To-Value Ratio (LTV) Agreement allows buyer to set an upper limit on someing called a loan-to-value ratio, or ltv. ltv may be used by lenders to help assess potential risk of a mortgage loan. ltv is determined by dividing requested loan amount by eir Purchase Price or appraised value of property, whichever is lower. many pre-qualification or pre-approval letters (discussed above) are based on assumption at a buyer will be applying for a 30-year loan. if loan term is different, purchase price at a buyer can afford may change. Be sure to calculate your payments based on correct information before making an offer. A particular ltv may be necessary to qualify for certain loans, or buyers might be required to pay additional fees if ltv exceeds a specific level. for example, if you are planning to borrow $80,000 for a property at appraises at $100,000 your ltv is 80% ($80,000/$100,000). stated anor way, loan ($80,000) should not be more an 80% of value of home ($100,000). Buyers should talk to ir realtor about wher is term should be included and, if so, what maximum ltv should be. Types of Mortgages mortgages come in many varieties. many loans are variations on traditional conventional mortgage loans, but each lender has its own requirements and re are a number of loans and loan guarantee programs available rough federal, state and local governments. most loans will require a down payment of some sort (often between 5% and 20% of purchase price), alough amount may differ depending on lender and programs for which a buyer qualifies. some loan products may permit downpayments as low as 1% to 3%, and re are even ors at will finance 100% or more of purchase price. keep in mind at buyers who have down payments of less an 20% may be required to purchase private mortgage insurance ( Pmi ), which is available for an additional fee. if a buyer is financing rough federal housing Administration (fha) or veterans Administration (va), make sure to read mortgage paragraph and fha/va notice in Agreement. fha mortgages are insured by department of housing and urban development s (hud) federal housing Administration program. A va loan is a mortgage loan on approved property made to a qualified veteran. one advantage of se programs is a relatively low down payment. in most cases, va loans don t require any down payment. or criteria may be more strict an a conventional loan. talk to your realtor about wher re are certain types of loans you should (or shouldn t) pursue. Pennsylvania Association of realtors

16 Mortgage Lenders while most lenders are very reliable and reputable, some lenders may be less reliable an ors in your market area. Asking buyers to identify lender y intend to use has two benefits. first, buyers are encouraged to research lenders prior to submitting an offer. since mortgage contingency paragraph of Agreement gives buyers a limited period of time to submit ir actual application (which can t be done until ir offer has been accepted), buyers who have identified lenders ahead of time should have an easier time making is deadline. second, having a lender identified in offer may also help sellers determine likelihood at a transaction will make it rough closing wi no financing delays. if a seller is aware at a particular lender tends to have problems wi delaying, or even canceling, planned closings, seller may be less likely to want to accept at offer. including name of a mortgage lender or lenders is not mandatory. Buyers should consult ir realtor to determine wher naming lender would be beneficial. where an offer is presented wiout a named lender, sellers should discuss wi ir realtor wher or not to request at buyer identify one. Mortgage Rates re are actually two interest rates stated in Agreement. first is rate at buyer is hoping to get and second is highest rate buyer is willing to accept. As wi or elements of is contingency, be realistic. if a mortgage is approved wi terms stated in Agreement but buyer fails to accept or lock in at loan wi an acceptable interest rate, buyer may be in default if rates later rise above stated interest rate cap and buyer refuses to accept loan at at time. federal regulations require mortgage lenders to provide buyers wi a loan estimate (le) statement wiin ree business days from receipt of buyer s mortgage application. settlement cannot occur wiin 7 days of early disclosure or wiin 3 days of redisclosure. redisclosure is only permitted if re is a change in circumstances. for example, if buyer fails to lock in interest rate quoted in le wiin 10 days, at is a change in circumstances, and lender may issue a revised le. Agreement requires buyer to lock in his interest rate 15 days before settlement if lender gives buyer chance because interest rates can have a large impact on APr. Fixed Rate vs. Adjustable/Variable Rate Loans interest on mortgage loans can be at a fixed rate, which means monly payment never changes except for possible increases in taxes and insurance. - or - A loan may be an adjustable-rate mortgage ( Arm ) or variable-rate mortgage ( vrm ), which means monly payment on mortgage loan may change. calculation of se changes is complicated and should be clearly understood before choosing is type of loan. What are Points? Points are fees at mortgage lender charges buyers for providing certain services. one point is equal to one percent of mortgage amount. Agreement asks buyers to put in a maximum number of points y are willing to pay often called a cap. for example, if points are capped at ree for a $100, loan, buyer will not be required to buy property if a lender offers a mortgage commitment requiring payment of more an ree points, or $3, Buyers pay points up front in cash as part of closing costs; money is not financed as part of mortgage loan. 14 Pennsylvania Association of realtors 2015

17 Two Important Deadlines mortgage Contingency paragraph of Agreement has two big deadlines. first deadline is time in which buyer has to submit a mortgage application. second deadline is mortgage commitment date, time by which buyer must have an answer from mortgage lender to give to seller. mortgage commitment date should be chosen carefully because it is not just deadline for mortgage lender to give approval for loan - seller or seller s broker also must receive a copy of commitment by is date. remember at if buyer doesn t meet se deadlines buyer may be in default and seller may have option to cancel Agreement and keep buyer s deposit. Conditional Mortgage Commitments Be careful if a mortgage loan will be conditioned on someing at isn t provided for in Agreement. if a mortgage commitment contains requirements or conditions from lender at are not part of Agreement, n seller may have right to terminate Agreement. for any condition on commitment (such as verifying income or selling or settling on anor property), buyers have 7 days after mortgage commitment date to satisfy se conditions. Certain types of routine conditions at can only be met at or near settlement don t give sellers right to terminate, however. such routine conditions might include a final verification of employment or providing proof of property insurance. As a buyer, if you know you must sell your current home before purchasing a new one consider making your offer contingent on sale or settlement of is or property. PAr offers several addenda for is purpose, depending on your circumstances. Lender Requirements every lender has slightly different requirements for approving a loan. se requirements will vary depending on type of loan being offered and are often very dependent on buyer s current financial status and financial history. value of property is anor major element at goes into lender s decision. in unlikely event at a buyer stops making payments and lender has to foreclose on property, at lender wants to be sure at value of property is high enough at lender could sell property and get its money back. Before lending a buyer money to purchase property, mortgage lender will almost certainly do an appraisal to make sure house meets lender s standards for loan. After appraising property lender will decide maximum amount of money at may be borrowed. in most mortgage transactions, federal lending regulations prohibit lenders from charging fees for appraisals to potential buyers before at buyer has indicated at he or she agrees to terms presented in loan estimate. until at time, potential buyers may only be charged a reasonable fee for credit report done by lender. After accepting terms of loan estimate and indicating an intent to move forward wi mortgage, buyer will likely be required to promptly order (and pay for) an appraisal on property. it is essential at lender s timelines be followed so at settlement can occur as scheduled. keep in mind at appraised value of property may be different from agreed-upon purchase price. sometimes appraised value will be too low for lender to approve entire amount of mortgage at has been requested. if buyer still wants to purchase property, it will be necessary to find additional money to make up difference. Pennsylvania Association of realtors

18 Mortgage Application Checklist for Buyers here is a sample checklist of some of ings buyer may need to provide to lender when applying for a mortgage loan. income information, including: employers name, address, and phone number for last two years w-2 statements for last two years recent pay stubs (approximately one mon s wor) Green card for resident alien if self-employed, last two years tax returns wi all schedules and year-to-date profit and loss statements or income from social security, va & retirement benefits, alimony, and child support financial information, including: Bank names, account numbers, and balances Bank statements for last ree mons on all accounts Proof of rent or mortgage payments for last 12 mons liabilities, including debts, loans, and credit card balances Current financial statements listing assets and investments Check to pay for appraisal, credit report, and mortgage rate lock or items and information, including: social security number landlords name and address for last two years Certificate of eligibility and/or dd214 for va loans leases for rental properties separation agreement, divorce decree, and/or property settlement Agreement of sale legal description of property is is only a sample checklist. Buyers should ask lender what else y need, as requirements may differ from lender to lender. keep in mind at is information will be required shortly after seller accepts Agreement of sale, so it couldn t hurt to get it ready ahead of time! What if Loan Is Not Approved? if a mortgage is approved wiin terms specified in Agreement, buyer must proceed wi transaction. if buyer meets all of obligations spelled out in is contingency and is still turned down for a mortgage, terms of Agreement state at buyer will not have to go rough wi purchase. remember at is is only true where buyer has, in fact, done everying required by terms of Agreement. is means buyer must have completed application and locked in interest rate wiin time given, application had same terms as were listed in Agreement, buyer was honest wi seller and mortgage lender regarding buyer s finances, and buyer has fully cooperated wi lender during processing of application. if buyer has failed to meet obligations agreed to in Agreement, he would likely be in default if loan is not approved. CHANGE IN BUYER S FINANCIAL STATUS successful completion of transaction depends in large part upon financial status of buyer. in time it takes to complete sale of a home, unexpected changes in buyer s finances could take place. if any of ose changes may affect buyer s ability to purchase property, n he is obligated to inform seller, and any lenders who received mortgage applications, in writing. 16 Pennsylvania Association of realtors 2015

19 Buyers should be aware at applying for or incurring additional financial obligations during is time can affect ir eligibility for financing along terms specified in Agreement. it is best to hold off on major purchases until after transaction has closed. SELLER REPRESENTATIONS is paragraph explains what seller knows about type of water and sewage systems serving property, wher re are historic preservation or land use restrictions on property and wher seller has received any notices about property from any government or public auority. note at re are additional explanatory notices included in Agreement for most types of on-lot sewer systems and land use restrictions. buyer agent often fills in is section wi information provided by seller in or forms, but seller should always double-check se items. once a seller accepts Agreement seller is responsible for se statements. remember at if buyer has special needs or questions on se issues buyer should still do inspections and contact a tax professional or attorney, if needed. The Seller Disclosure Law Pennsylvania law requires at before an Agreement is signed, seller in most residential real estate transfer must make certain disclosures regarding property. A residential real estate transfer is defined as a sale, exchange, installment sales contract, lease wi an option to buy, grant or or transfer of an interest in real property of between one and four dwelling units. disclosures must be made to all potential buyers in a form defined by law. re are several exceptions where disclosures do not have to be made: 1. transfers at are result of a court order; 2. transfers to a mortgage lender at result from a buyer s default and sbusequent foreclosure sales at result from default; 3. transfers from a co-owner to one or more or co-owners; 4. transfers made to a spouse or a direct descendant; 5. transfers between spouses at result from divorce, legal separation or property settlement; 6. transfers by a corporation, partnership or or association to its shareholders, partners or or equity owners as part of a plan of liquidation; 7. transfer of a property to be demolished or converted to non-residential use; 8. transfer of unimproved real property; 9. transfers by a fiduciary during administration of a decedent estate, guardianship, conservatorship or trust; 10. transfers of new construction at has never been occupied when: 1) buyer has received a one-year warranty covering construction, 2) building has been inspected for compliance wi applicable building code or, if none, a nationally recognized model building code, and 3) a certificate of occupancy or a certificate of code compliance has been issued for dwelling. in addition to se exceptions, disclosures for condominiums and cooperatives are limited to seller s particular unit(s). disclosures regarding common areas or facilities are not required, as ose elements are already addressed in laws at govern resale of condominium and cooperative interests. Buyers should be aware at seller disclosure law does not require seller to do any investigation; only obligation is for seller to disclose what y know. if buyer has any questions about soundness or function of property or any part of it, y should consider a home inspection. Pennsylvania Association of realtors

20 Public and/or Private Notices and Assessments term assessment is used in Agreement of sale and in is booklet to refer to some fee or cost paid by a homeowner for an improvement related to property. for example, a local government might impose an assessment on residents to pay for new sidewalks or sewer pipes, while a condominium or homeowner association might levy an assessment on property owners to pay for cost of maintaining public areas overseen by association. term assessment is not meant to include property tax assessments or relate to property values. buyer should research local assessments and tax rates during process of searching for a suitable home, before submitting an offer. seller is required to pay for any assessments made prior to acceptance of Agreement, and is also responsible to correct violations of zoning, building or safety ordinances when notices of violation have been provided to seller before Agreement is signed. even if assessment or violation hasn t yet been received, if seller knows at someing will be coming it must be disclosed to buyer in advance. WAIVER OF CONTINGENCIES many contingencies in Agreement of sale specify time periods wiin which parties must act. waiver of contingencies paragraph reminds bo buyer and seller at failure to meet a deadline will result in waiver of rights under at contingency. for example, if buyer misses a deadline to request repairs after an inspection, buyer will be deemed to have accepted property wi no repairs. if re is any reason why preprinted contingency time periods might be problematic be sure to let your realtor know so ose times can be adjusted. DUE DILIGENCE/INSPECTIONS in most residential transactions, sellers are required to provide buyers wi a seller s Property disclosure statement listing known problems wi property. exceptions to is general rule are listed above and on PAr seller s Property disclosure statement (form spd). Alough is form covers many important aspects of property, buyers should not rely exclusively on is form in determining condition of property. for one ing, form only asks sellers to disclose conditions y are aware of. re might be many ings at would concern a buyer (and seller, for at matter), but are unknown by seller. for example, sellers might not know of a weak spot in roof if it hasn t started leaking; similarly, y might not know at a septic system is getting close to needing a repair if it hasn t started causing problems. Buyers should strongly consider hiring professional inspectors to review major elements and systems of home. is might take form of obtaining a full home inspection of property, hiring a series of specialists to inspect individual systems (for example, a roofer for roof, a plumber for plumbing, etc.), or some combination of two. keep in mind at Agreement requires at inspections be done by licensed or orwise qualified inspectors, so buyers should always be sure to check out qualifications of inspectors before hiring m. in inspections paragraph seller agrees to allow access to property for all inspections agreed upon in Agreement. it also states at utilities will be on for inspections and reserves buyers right to a pre-settlement inspection of property. Alough buyers do have right to attend inspections, buyers are re just as observers. is isn t time to bring along family members for a tour of home or to ask a decorator to measure for new curtains. similarly, right to a pre-settlement inspection is generally meant to provide an opportunity to look rough property just before settlement to make sure at everying is in condition agreed to in Agreement. if buyers have any or need to enter property before settlement y should work out arrangements ahead of time wi seller. 18 Pennsylvania Association of realtors 2015

21 Are Inspections Required? when making an offer, it is better to err on side of caution. As a buyer, if you are unsure of wher or not you will need any inspections, elect to have m done. reserving option to have inspections lets buyers decide later wher y want m. however, if buyers waive right to inspections in Agreement y can t come back later to have m done. remember at requesting and allowing inspections are negotiable terms. if sellers have a choice between two similar offers y may opt for offer at is contingent upon fewer inspections. At same time, however, when a buyer waives right to an inspection it means at property will be accepted in its present condition, regardless of what at condition is. is could be very expensive for buyer if certain conditions need to be fixed after moving into property. in many ways, deciding on what inspections to have may be one of most important elements of Agreement. sometimes a potential buyer may want to conduct certain types of inspections before even making an offer. for example, it is often a good idea to drive around a neighborhood and even talk to a few neighbors before making an offer. is can help identify issues such as ease of access to neighborhood, noise from nearby roads or factories, and many or concerns at might affect decision. some buyers might even want to inspect property before making an offer. talk to your realtor to determine wher is is right for you. doing se sorts of inspections before making an offer can save buyers and sellers a lot of time if it turns out at re is someing a buyer doesn t like. How long will inspections take? Buyers should ask ir realtor for an idea of how long it will take to get inspections done. All of inspections are subject to a Contingency Period of a certain number of days. Contingency Period will be same for all inspections. remember to leave a buffer so re is enough time to complete everying wiin time given. see appropriate notices in Agreement for helpful information on property conditions and some information on certain inspections. HOME/PROPERTY AND ENVIRONMENTAL HAZARDS INSPECTION Agreement s home/property and environmental hazards inspection provides for inspections of pretty much anying and everying related to property not covered by later inspections. some of inspections often performed as a single system inspection or as part of a full home inspection are listed below. electrical system environmental issues General appliance condition heat/air conditioning (hvac) mechanical systems Plumbing roof mold and indoor air quality Property boundaries Building codes compliance site features (condition of driveway, sidewalks, etc.) structural condition water penetration note: or common inspections are listed individually in rest of is paragraph: wood infestation deeds, restrictions and Zoning water service radon on-lot sewage system Property and flood insurance Property Boundaries lead-based Paint Pennsylvania Association of realtors

22 Pennsylvania home inspection law applies to residential real estate transfers, which is a transfer of between one and four dwelling units. law also sets certain criteria for home inspectors. Below are definitions of some of common terms used in a home inspection. Home Inspection: A non-invasive, visual examination of some combination of mechanical, electrical or plumbing systems or structural and essential components of a residential dwelling designed to identify material defects in ose systems and components. term does not include an examination at is limited to inspection for, or of, one or more of following: wood-destroying insects, underground tanks and wells, septic systems, swimming pools and spas, alarm systems, air and water quality, tennis courts and playground equipment, pollutants, toxic chemicals and environmental hazards. simply put, a home inspection is an inspection at covers multiple systems of property in a single inspection. for example, if one inspector looks at roof, plumbing, and heating systems during a single inspection, it is a home inspection according to law. if ree different inspectors look at each item separately, ose single-system inspections are not home inspections as defined by law. Home Inspection Report: A written report on results of a home inspection. report must include a description of scope of inspection and a description of any material defects noted during inspection, along wi any recommendation at certain experts be retained to determine extent of defects and any corrective action at should be taken. remember: hiring a home inspector does not guarantee at everying will be perfect wi property, or at inspector will always discover all problems wi property. Home Inspector: An individual who performs a home inspection National Home Inspectors Association: Any national association of home inspectors at: (1) is operated on a not-for-profit basis and is not operated as a franchise, 2) has members in more an ten states, 3) requires at a person may not become a full member unless person has performed or participated in more an 100 home inspections and has passed a recognized or accredited examination testing knowledge of proper procedures for conducting a home inspection, and 4) requires at its members comply wi a code of conduct and attend continuing professional education classes as an ongoing condition of membership. if buyer elects to have a home inspection, make sure home inspector is properly qualified and operates in compliance wi law. keep in mind at law gives certain protection if inspector provides a written representation regarding home inspector s qualifications, so be sure to get it in writing when selecting an inspector. when hiring or inspectors, check out ir qualifications and background, as well as wher y have any required local licenses and permits (for example, certain cities or municipalities might require at a plumber get a local license before being allowed to work). Material Defect: A problem wi a residential real property or any portion of it at would have a significant adverse impact on value of property or at involves an unreasonable risk to people on property. WOOD INFESTATION it s always a good idea to have property inspected for wood-destroying insect infestation (termites) and it is usually required by mortgage lenders. remember at it will be buyer s responsibility to request treatment or repairs if y are desired. 20 Pennsylvania Association of realtors 2015

23 DEEDS, RESTRICTIONS & ZONING later in Agreement it states at seller will provide good title to buyer, but at title will be subject to existing deed restrictions and or types of existing restrictions. Buyers will probably want to be sure at any existing restrictions don t interfere wi how y expect to use property. for example, a buyer who wants to install an in-ground pool may not be able to if it turns out electric company has an easement for an underground power line at runs right rough yard. Buyers can use is inspection to look at deed rough a title search, as well as examining or property restrictions including zoning issues. WATER SERVICE if buyers are concerned about status of water system serving property, y should elect to have system inspected. is is often elected when property is served by an on-site system, usually a private well. re are no state or federal standards for well water, so buyer may want to have a reputable water testing company analyze quality of water and provide a report listing any contamination. Buyers should speak wi testing company about what types of tests it will run and what contaminants it can detect. different testing may be necessary for different areas. Buyers might also wish to have an inspector test flow rate of well, along wi physical structure of well and its components. Alough not as common, is inspection also allows buyers to investigate quantity or quality of public water supply; some buyers might want to have testing done even if home uses public water. testing might determine if re are problems wi system wiin home or wi pipes leading to home off main water line, which are often owner s responsibility. RADON radon is a radioactive gas produced in ground by natural decay of radium and uranium. extended exposure to high levels of radon can pose serious heal risks. if radon gas has been detected on property rough past testing seller must disclose is information in seller s Property disclosure statement. if no disclosure statement is required in your transaction, it may be prudent for a buyer to elect is inspection. if radon is discovered to be at or higher an level at is acceptable to buyer, buyer can decide which choice to make wiin inspection process. ON-LOT SEWAGE inspection in is paragraph relates only to testing an on-lot sewage system such as a septic system. most buyers are concerned about condition of an on-site sewage disposal system. it s a good idea to have sewage disposal system inspected unless current data and/or documentation is available to verify current status of system. if property has access to public sewer and buyers want to have an inspector check flow and condition of sewage lines it would be done under home/property inspection found earlier in Agreement. if inspection shows at existing system is defective but can be repaired wiout expansion or replacement, parties proceed under inspection process. unlike or inspection contingencies, re is a second step to is contingency. if fixing defects identified in report would require expansion or replacement of current system seller decides what action to take. default terms of Agreement give seller 25 days to get furr testing and present a written Corrective Proposal (more on is below) to buyer about expanding or replacing system. buyer n has option to accept terms of Proposal, take property wi no changes, or terminate Agreement and get back any deposit monies. Pennsylvania Association of realtors

24 PROPERTY AND FLOOD INSURANCE Almost every buyer will want or need to obtain insurance coverage for property. for buyers getting mortgage financing lender may require a minimum amount of insurance coverage. even for a cash buyer who isn t required to get insurance by a lender it is certainly a good idea to insure such a large investment against loss or damage. Just like mortgage lenders have varying standards for making loans, insurers may have different standards for deciding wher to insure a particular property. se standards will often include property s insurance history (wher re have been claims by current or prior owners), buyer s insurance history (wher buyer has filed claims in prior homes), property s condition and value, and buyer s credit history. Property and flood insurance inspection gives buyers option to make Agreement contingent on being able to obtain suitable insurance coverage. electing is paragraph requires buyer to make an application for insurance wiin stated Contingency Period. if buyers are unable to obtain acceptable insurance wiin Contingency Period y will have option to terminate Agreement wiout being in default. in 2012, changes to national flood insurance Program (nfip) included re-mapping of flood plains and removal of federal subsidies for cost of flood insurance premiums. Buyers are cautioned to get quotes from several reputable sources based on current maps and not to rely on seller s current need for or cost of flood insurance. Buyers should not delay in seeking quotes on cost of insurance, as estimates may take several weeks to complete. most insurers will be able to provide a reliable answer to an insurance application wiin a few days. keep in mind, however, at an insurer might make a preliminary decision conditioned on result of an inspection or furr research by insurer. if buyer obtains a conditional approval, parties may wish to amend is paragraph to permit furr discussion if insurer changes its decision. PROPERTY BOUNDARIES if re isn t a valid legal description of property in deed, a survey may be required by title company or attorney performing title abstract. if so, seller will pay for it. A buyer who is concerned about precise location of boundaries of property may wish to obtain (and pay for) a survey unless property was recently surveyed and markers/stakes remain. wiout a survey it is unlikely sellers or realtors involved in transaction will know precisely where boundary lines are located. LEAD-BASED PAINT HAZARDS law provides buyers right to carry out a risk assessment and/or inspection for presence of lead-based paint and lead-based paint hazards in properties built prior to is paragraph allows buyer to elect such an inspection. you should receive a pamphlet titled Protect Your Family From Lead in Your Home and a disclosure from seller about seller s knowledge of lead-based paint on property if property was built before INSPECTION CONTINGENCY if buyer decides to have any inspections, Agreement of sale lays out a process of how to proceed if re is someing unsatisfactory in inspection reports. is process gives buyers right to accept Property in condition reported by inspector(s), terminate Agreement and get back any deposits, or suggest anor solution. Buyers make is suggestion by providing a written Corrective Proposal to seller, which lists issues buyer would like to have addressed and what actions y would like seller to take. 22 Pennsylvania Association of realtors 2015

25 in most instances, buyers are asking for repairs to property, some sort of a credit or seller assist towards cost of repairs, or a reduction in sale price of property. various or alternatives may exist, but whatever buyers wish to have done should be stated wi some specificity in ir written Corrective Proposal. it is important for bo buyer and seller to always meet all time deadlines stated in is process. missing a deadline may mean at party has waived his or her right to take certain action. for example, if buyer has chance to terminate during contingency period but doesn t, buyer has waived at right and has to move forward. re are no specific requirements for what a written Corrective Proposal must look like, nor what must be in Proposal. PAr produces a form called reply to inspections/reports (form rr) at can often be used for is purpose, but buyers may create ir own Proposals if desired. negotiation during is period may be as formal or informal as parties like, so long as final terms of agreement are put in writing and signed by parties. whatever format, buyers can make terms of Proposal as specific as y would like. depending on context, is could include ings like name of contractor and meods used to do work. remember at initial terms of written Corrective Proposal are up to buyer, and buyer and seller will n negotiate over a final resolution of issue. buyer might ask seller to replace hot water heater and repair sidewalk. or Proposal might be to repair sidewalk and provide a $500 credit towards hot water heater. or it might be an $800 seller assist. or it might be any combination of se solutions and many ors. see PAr form rr for hints on handling se Proposals. After receiving Proposal, buyer and seller have a certain period of time to decide what to do wi buyers requests. if seller decides to complete everying as requested in Proposal buyers must move forward wi purchase of property. if seller chooses to not do everying in Proposal buyer and seller have a chance to try to negotiate a solution at works for bo. if time period for negotiation ends, and parties haven t reached a mutually acceptable written agreement, n buyer will have a chance to terminate Agreement. REAL ESTATE TAXES AND ASSESSED VALUE Currently, Pennsylvania property and school taxes are based on a home s fair market value. se assessments are done on a county-wide basis and not upon sale of property. if property owner or taxing auority (school district, township, etc.) disagree wi new assessment, bo sides have certain rights of appeal. A successful appeal by eir party could result in taxes going up or down. NOTICES, ASSESSMENTS AND MUNICIPAL REQUIREMENTS Notices and Assessments seller is required to provide to buyer any notices of assessments or violations received after Agreement has been signed by bo parties, along wi notice of wher seller intends to pay assessments and/or fix violations. if seller does not pay any new assessments or correct any new violations buyer n has a choice to accept property (and pay assessments or correct violations) or terminate sale and get back all deposit monies. ordinance: governing rules and regulations of a municipality (e.g., zoning, building and safety). state and federal governments govern by using laws; local municipalities (cities, boroughs, townships, etc.) use ordinances. Pennsylvania Association of realtors

26 Certificate of Occupancy or Use and Occupancy Permit in some municipalities re is a requirement to obtain a certificate of occupancy or a use and occupancy permit when a property is sold. is process may include municipality performing some sort of a physical inspection and reporting any violations of local ordinances. depending on ordinances, some or all of violations may need to be fixed before settlement or wiin a certain period of time after settlement. if property has no violations, or if property is brought into compliance wi ordinances, owner will receive is certificate/permit. if any violations are found during is municipal inspection seller will decide wher to fix violations. if seller agrees to appropriate repairs buyer must move forward wi purchase; if not, buyer has choice to make repairs or to terminate agreement and get back all deposit monies. unlike most or inspections, results of se municipal inspections might be given to seller, not buyer. Accordingly, a buyer may not realize at a problem exists until seller shares results of inspection. to encourage sellers to inform buyers of any problems as soon as possible, Agreement states at if seller fails to notify buyer wiin agreed upon time period seller is automatically required to do - and pay for - all repairs called for in report. CONDOMINIUM/PLANNED COMMUNITY (HOMEOWNER ASSOCIATION) RESALE NOTICE re are a number of differences between a standard residential property and one at is part of a condominium or planned community. Generally speaking, a condominium owner only owns interior area of his or her unit. owner also owns, wi all or owners, property surrounding units, which is called common area. owners pay a monly fee to cover maintenance and repairs to common areas, which generally include sidewalks, parking areas, landscaping, swimming pools and exteriors of buildings. A planned community is similar to a condominium except owner usually owns building and land directly undernea it. most of rest of planned community would be common areas owned by all of owners and maintained by a homeowner association. like condominium, a monly fee is generally assessed for upkeep of common areas. condominium or homeowner association usually has a board of directors made up of owners. board makes rules and regulations governing use of common areas and is also responsible for overseeing association s finances. when an existing unit or house is being purchased, wi some exceptions, uniform Condominium Act and Pennsylvania uniform Planned Community Act require a seller to give a buyer a certificate of resale along wi rules and regulations of association before Agreement can become binding. certificate of resale contains a list of items at buyer is entitled to review before settlement occurs. Buyers are given five days to review se documents and to terminate sale if not satisfied for any reason. when purchasing a new unit in a condominium or a new house in a planned community, developer (seller) is required to give you additional information and more time to review documents. Ask your realtor for details. A Word to Wise many buyers are quite surprised to find out what sorts of limitations a condominium or homeowner association can enforce. limitations can often include rules on choosing exterior paint color, putting up decorations and ornaments, landscaping, and or issues. Certain activities may also be restricted, such as parking, ball playing, and bicycle riding. to avoid surprises, buyers should learn as much as possible about homeowner or condominium association restrictions Before buying is type of property. 24 Pennsylvania Association of realtors 2015

27 TITLES, SURVEYS AND COSTS Title to Property seller will transfer ownership of property to buyer at settlement in form of a deed. is is known as taking title to property. it is always a good idea for buyer to have a title search and to obtain title insurance; bo are generally required by mortgage lenders. purpose of a title search is to research history of property to determine if re are any financial liens or claims of ownership to property beyond seller s ownership. if title search reveals at seller can t give good and marketable title free of or liens or claims buyer may terminate sale and have all deposit monies returned. lien: A right given by law to creditors (lenders) to have ir loans paid off when property is sold. A mortgage is a type of lien. Title insurance is meant to protect against claims or liens at may be discovered after purchase is complete. for example, if a lien wasn t properly filed against property and is only discovered several years after purchasing property, a title insurance policy should pay some or all of costs of addressing at problem. re are a number of variations on title insurance, including some policies at cover certain property defects or failure of prior owners to obtain proper permits for work done to property. Buyers should talk to ir title insurer about extent of protection offered by title insurance policy. it is assumed at all rights to property (sometimes called a bundle of rights ), including ose above and below ground, transfer wi property unless Agreement specifies orwise. if Buyer and seller know at not all of se rights will transfer - such as rights for coal mining or oil and gas drilling - y should make sure Agreement explains which rights will be transferred and which rights will not. re is a PAr form for is purpose. CAution: seller s requirement to transfer marketable title at settlement does not mean at re are no easements or or restrictions at affect use of property. An easement is a right of access over or on property for a specific use. for example, utility companies frequently have easements giving m access to install and maintain ir lines on privately owned property. deed restrictions and restrictive covenants may also limit how a property may be used or what may be placed on property. Buyers concerned wi impact at easements and restrictions will have on ir use of property should find out if any exist before signing Agreement of sale, or y should make it one of ings y check as part of deeds, restrictions and Zoning inspection, if elected. if property is in an area where coal has been extracted or where rights to coal have been transferred separately from rights to surface land, legally required notice in Paragraph 17(h) informs buyer at certain below-ground rights ( rights to coal at may be under your property) might not be transferred wi property. it also advises buyers at damage may occur as a result of mining activity. MAINTENANCE AND RISK OF LOSS it is a common misconception at a property is guaranteed to be in good condition at settlement. in reality, buyers are purchasing property in condition it is in at time bo parties sign (execute) Agreement of sale unless terms of Agreement state orwise. is means at if buyer wants someing to be fixed or replaced before settlement it should be in writing as a term of Agreement or in an addendum. Pennsylvania Association of realtors

28 Generally, Agreement refers to property as being in its present condition at time Agreement is signed. if condition changes before settlement, after accounting for normal wear and tear (and any changes made as a result of inspection contingency process), Agreement says at seller can eir correct condition or credit buyer cost for correction. if seller fails to correct condition or offer a credit, buyer can terminate sale. let s use refrigerator as an example and assume at it is included wi sale of home. if, after buyer submits an offer, a few small scratches appear on door of refrigerator n Agreement places no obligation on seller to do anying because at would be considered normal wear and tear. seller is prohibited, however, from taking refrigerator at buyers ink y are getting and replacing it wi an older or less-expensive one (at is not present condition). if refrigerator at buyers are to receive breaks before settlement, n seller must eir repair it, replace it, or provide buyer wi a credit. if seller fails to do any of ose ree ings, n buyer has option to terminate Agreement. remember: electing inspections provided for in Agreement of sale is best way to determine property s condition. if you have any questions it is better to have m answered by an inspector before settlement when you may be able to negotiate over a condition or terminate Agreement. one of reasons to do a pre-settlement walkrough is to be sure noing has changed. where re is damage from a fire or any or sort of disaster (flood, tornado, etc.) which is not repaired or replaced prior to settlement, buyer has choice to accept property wi seller s insurance reimbursement, if any, or to terminate Agreement and get any deposits returned. HOME WARRANTIES A home warranty is like an insurance policy at covers some or all of costs to repair or replace certain appliances or systems of a home. in some transactions a seller might elect to purchase a warranty at would cover home after it is sold. or times a buyer might want to purchase warranty on his own. types of warranties and ir availability will vary from market to market, so check wi your realtor if you ink purchasing a home warranty might be useful. RECORDING After seller accepts Agreement of sale, but before settlement is complete, a buyer technically has an ownership interest in property. in fact, buyers are sometimes known as equitable owners prior to settlement. Paragraph 20 states at executed Agreement of sale, which creates is ownership interest, may not be recorded at courouse. when settlement is complete, new deed will be recorded in public record as evidence of buyer s full ownership of property. ASSIGNMENT occasionally, a buyer might not want his or her identity known to seller. for example, an investor seeking to buy several homes on same block might not want sellers to know at same buyer is interested in all lots. in at sort of transaction original offer might be submitted wi name of anor person or company identified as buyer. once contract is signed, identified buyer would n assign right to purchase property to true buyer via a separate contract. is can cause problems for sellers, who might find at y are suddenly in a transaction wi a buyer y wouldn t have accepted had y known buyer s true identity from beginning. to avoid is problem, Agreement states at a buyer may not transfer or assign Agreement of 26 Pennsylvania Association of realtors 2015

29 sale to anor buyer wiout seller s permission. at is, if identified buyer doesn t have seller s permission to make assignment, buyer must go forward wi purchase himself or risk being in default and losing all deposits. if you know in advance at right to purchase will be assigned you should talk to your realtor. buyer may be required to pay additional transfer tax when assigning right to purchase. talk to an attorney and/or accountant about potential impacts. GOVERNING LAW, VENUE AND PERSONAL JURISDICTION should a legal problem arise during transaction at results in filing of a lawsuit, parties agree to file and defend lawsuit wiin Pennsylvania courts, using Pennsylvania law. FOREIGN INVESTMENT IN REAL PROPERTY TAX ACT OF 1980 (FIRPTA) typically, transfer of an interest in real estate is a taxable event. firpta permitted internal revenue service (irs) to impose a tax on foreign persons upon transfer of real estate located wiin united states. A foreign person can be a nonresident alien individual, a foreign corporation, a foreign partnership, a foreign trust or a foreign estate. term does not apply to resident aliens. foreign persons must inform buyers of ir status and provide an affidavit setting for information needed to properly record tax. when purchasing real estate from a foreign person, buyers are required to act as wiholding agents and wihold a percentage of profit as tax. failure to properly wihold could result in buyer being liable for tax, so it is wise to consult an attorney or accountant if involved in is type of transaction. NOTICE REGARDING CONVICTED SEX OFFENDERS (MEGAN S LAW) Pennsylvania law requires ose convicted of certain sexual offenses to register wi state Police under a program commonly known as megan s law. purpose of megan s law is to provide community notification of presence of certain individuals in a particular area. state Police website ( provides a searchable database for public s use. A search of is nature is not an inspection, nor is proximity of an offender a material defect at must be disclosed under seller disclosure law. Buyers who are concerned should make use of resources available to m prior to submitting an offer. REPRESENTATIONS during course of a transaction many people say many ings. Buyers will probably hear or read information about property provided by seller, seller s realtor and buyer s own realtor. sellers will likely have gotten certain information about buyers and ir financial position from buyers realtor or buyers mselves. wi all is additional information floating around it is important to remember at transaction is ruled only by what is written in Agreement and any addenda. if re is someing about transaction at isn t in writing and included as part of Agreement, neir side can rely on it. if you want someing to be done, get it in writing even if or party verbally says y ll take care of it. if re is a proposed term written in Agreement at you dislike or disagree wi, delete it before signing form; if a term is in Agreement you will be bound by it, even if or party stated at it wouldn t be a big deal. CAution: take time to read and understand all relevant portions of Agreement and any addenda. time to deal wi any issues is well before settlement, not at settlement table or after purchase is complete. Pennsylvania Association of realtors

30 DEFAULT, TERMINATION AND RETURN OF DEPOSITS if a party fails to do someing at is required by Agreement at party could be considered to be in default. if is happens or party may have certain legal rights and or rights granted by terms of Agreement. in most transactions buyer will have some amount of money paid as a deposit being held in escrow by a broker. default paragraph of Agreement states at where buyer is in default (usually for failing to do someing necessary to keep transaction moving forward) seller will get to keep buyer s deposits. re is also a choice for seller to decide wher ose damages will be complete remedy for default or if seller will reserve right to also file a lawsuit for any additional remedy at might be provided by law. where seller is in default buyer s rights are primarily defined by law, not by Agreement. if buyer wants to move forward wi purchase but seller backs out for a reason not permitted in Agreement, buyer may be able to bring a lawsuit for damages or to force seller to complete sale. re are many places in Agreement where your action (or inaction) could lead to a default. your realtor can help keep track of your various deadlines and responsibilities to make sure you don t inadvertently end up in default. Any deposits will be given to real estate broker (unless anor escrow agent is named in Agreement) and will be applied to purchase price. state laws strictly outline a real estate broker s escrow duties and dictate at deposits be kept in an escrow account separate from real estate broker s regular business account. MEDIATION return of deposits is one of most commonly misunderstood parts of Agreement. state law requires at a real estate broker keep all deposits in broker s escrow account if re is any dispute between parties about how deposits should be paid. even if one party is being unreasonable or is taking a position at clearly doesn t match terms of Agreement, broker is not permitted to return deposits until parties agree, a court order is issued, or terms of a pre-agreement between parties kick in. so at neir side can later claim at deposits were released against ir will, most brokers will ask parties to sign some sort of a document auorizing broker to release deposits. language in Paragraph 26 is a pre-agreement between parties at in event of an unresolved dispute over deposit money, buyer may ask for it to be returned after a specified time. note at re are certain conditions at must be met before broker may return money. Also, a distribution of deposit money to buyer does not mean at buyer is legally entitled to money. parties maintain ir legal rights to litigate dispute in court even if deposit has been given back to buyer. it used to be at if a dispute between a buyer and seller couldn t be resolved amicably between parties, only or option was to go to court. in many areas of Pennsylvania local association of realtors offers a mediation process at brings parties toger wi a trained mediator at a moderate cost to encourage an amicable solution. language in is Paragraph indicates at buyer and seller agree in advance to mediate using mediation process offered by local association of realtors if a dispute arises. if dispute cannot be resolved, parties are still free to go to court. you can ask your realtor for more information. 28 Pennsylvania Association of realtors 2015

31 RELEASE depending on terms negotiated by parties, buyer may have various opportunities to renegotiate or to terminate Agreement. where buyer elects to move forward wi transaction or misses a deadline, Agreement states at buyer will accept property and agree to is release. in general terms, release states at buyers understand at if y accept property wi certain conditions y can t n come back and file suit against seller over ose conditions. for example, if buyer does an inspection at detects roofing problems but chooses to move forward wiout asking seller to fix roof, buyer can t come back later after roof starts leaking and sue seller for cost of making repairs to roof. it is important to note at release does not protect seller in case of fraud or any or default by seller. so if seller agrees to fix a problem wi roof but n lies about getting repair done, buyer is probably not bound by release language of Agreement. Because release is so important, it is a good idea to ask your realtor or an attorney if you have any questions. REAL ESTATE RECOVERY FUND Pennsylvania law can protect consumers in unlikely event at re is misconduct on part of real estate licensees involved in transaction. if you successfully sue licensee or licensees for ir actions but are unable to collect your judgment from m, real estate recovery fund can be a source to collect some, if not all, of your funds. COMMUNICATIONS WITH BUYER AND/OR SELLER Communication between parties and ir realtors is key to a smoo, successful transaction. Copies of important documents, such as time-sensitive loan estimate and Closing disclosure, should be provided to your realtor as soon as you receive m. in most cases communicating someing to a Buyer Agent is viewed as same as communicating someing to buyer. same holds true for seller Agent and seller. only exception to is rule is resale certificates for Condominiums and Planned Communities. se certificates must be delivered to buyer before buyer s time to review se documents would begin, so is allows seller s agent to send ose documents to buyer directly rar an going rough buyer agent. HEADINGS you will see at each of paragraphs (and some subparagraphs) in Agreement are labeled wi a heading. headings are to help organize and locate information, and are not interpreted as providing any rights or responsibilities to parties or ir agents. SPECIAL CLAUSES during negotiation process bo buyer and seller will probably make a number of changes to pre-printed text of Agreement. sometimes se changes will just help clarify pre-printed text (changing number of days for an inspection, for example), and sometimes y will substantially alter text (perhaps by crossing out and rewriting a paragraph to better reflect parties intention). in certain or cases buyer and seller will decide at re is a need to include someing completely new in Agreement. special Clauses Paragraph provides parties some space to add new or different terms at aren t included in pre-printed text. re is also a list of some commonly used PAr addenda at parties might decide to use if y are relevant to transaction, along wi some blank lines to indicate at some or addenda are attached. Pennsylvania Association of realtors

32 remember: All terms and conditions of transaction must be included in Agreement in writing. if buyer and seller have agreed to some or clause or contingency in anor document, at document should be listed here. ideally, it should also be physically attached to signed Agreement. SIGNING THE AGREEMENT you will be asked to initial and date each page and sign Agreement of sale. Be sure to fill out signature AreA ComPletely. last, but certainly one of most important steps of process, is to promptly deliver completed Agreement of sale to or party. until Agreement presented by buyer is signed and dated by Bo PArties it is still just an offer to purchase, not a legally binding contract. even if or party verbally assures you at Agreement will be or has been signed, safest course of action is often to wait to proceed until you or your realtor has received a copy of Agreement. MISCELLANEOUS BROKER SERVICES you may be asked to sign a separate agreement wi your realtor for specific services relating to sale. if broker, or anyone affiliated wi company, has a financial affiliation wi any of service providers, it will be disclosed to you in a separate form. LET YOUR REALTOR BE YOUR GUIDE real estate transactions can be very complicated and you ll probably feel overwhelmed. is booklet is designed to get you more comfortable wi is part of process, but your realtor is re to guide you from start to finish, so be sure to rely on expertise of your realtor to see you rough it. 30 Pennsylvania Association of realtors 2015

33 Notes & Questions Pennsylvania Association of realtors

34 STANDARD AGREEMENT FOR THE SALE OF REAL ESTATE This form recommended and approved for, but not restricted to use by, members of Pennsylvania Association of Realtors (PAR). BUYER(S): BUYER S MAILING ADDRESS: SELLER S MAILING ADDRESS: E PROPERTY ADDRESS (including postal city) ZIP,, in municipality of,, County of,, in School District of,, in sylvania. Tax ID #(s): and/or Identification ication (e.g., Parcel #; Lot, Block; Deed Book, Page, Recording Dat ate): #P EPenns BUYER S RELATIONSHIP WITH PA LICENSED BROKER No Business Relationship (Buyer is not represented by a broker) Broker (Company) Licensee(s) (Name) Company License # M State License Company Address Direct Cell Company Phone MP Company Fax Licensee(s) only one) e): Broker is (check only one): Buyer Agent (all compan any licensees represent Buyer) Buyer Agent (Broker represents Buyer only) wi Des esignated Agency (only Licensee(s) named Dual Agent (See Dual and/or Designated Agent box below) Buyer) (See Dual and/or Designated Agent box below) Transa action Licensee (Broker and te services but do not represent Buyer) SELLER SAMprovide RELA PA LICENSED BROKER No Business s Relationship (Seller is not esented amby oker) MBuyer MP(check MPPhone(s) Mreal MDual MAgent (Name) License # State License # Address Direct Phone(s) Cell Phone(s) Phone Fax AMATIONSHIP S Broker (Company) Licensee(s) _ Company Company Company Company Licensee(s) is (check only one): Broker is (c check only Seller Agent (all company licensees represent Seller) Seller Agen ent (Broker Seller only) Seller Agent wi Designated Agency (only Licensee(s) named Dual Agent (See Designated Agent box below) above represent Seller) Dual Agent (See Dual and/or Designated Agent box below) Sand/or SDual Transaction Licensee (Broker and Licensee(s) provide real estate services but do not represent Seller) PARTIES SELLER(S): EofECommonweal P MLicensee(s) Mrepresent Mabove MP MPPhone(s) Mestate MAgent SrepresentsS S one):s reprambrmmwithm PisP S P L E DUAL AND/OR DESIGNATED AGENCY A Broker is a Dual Agent when a Broker represents bo o Buyer and Seller in same transaction. A Licensee is a Dual Agent when a Licensee represents Buyer and Seller in same trans action. All of Broker s licensees are also Dual Agents UNLESS re are separate Designated Agents for Buyer and Seller. If same Lic censee is designated for Buyer and Seller, Licensee is a Dual Agent. By signing is Agreement, Buyer and Seller each ac cknowledge having been previously informed of, and consented to, dual agency, if applicable. ASR Buyer Initials: / ASR Page 1 of 13 Revised 8/15 Seller Initials: / COPYRIGHT PENNSYLVANIA ASSOCIATION OF REALTORS /15 32 Pennsylvania Association of realtors 2015

35 By is Agreement, dated 1., Seller hereby agrees to sell and convey to Buyer, who agrees to purchase, he identified Property. 2. PURCHASE PRICE AND DEPOSITS (4-14) (A) Purchase Price $ ( U.S. Dollars), to be paid by Buyer as follows: 1. Initial Deposit, wiin days (5 if not specified) of Execution Date, if not included wi is Agreement: $ 2. Additional Deposit wiin days of Execution Date: $ E 3. $ Remaining balance will be paid at settlement. (B) All funds paid by Buyer, including deposits, will be paid by check, cashier s check or wired funds. All fun nds paid by Buyer wiin 30 days of settlement, including funds paid at settlement, will be by cashier s check or wired funds, but not by per- sonal check. (C) Deposits, regardless of form of payment, will be paid in U.S. Dollars to Brok roker for Seller (unless orwise here: ), ), L ), who will retain deposits in an escrow account in conformity wi all applicable laws and regulations consummationn or ter- mination of is Agreement. Only real estate brokers are required to hold de eposits in accordance rules andewi ations of State Real Estate Commission. Checks tendered as deposit monies may be held uncashed execution of is Agreement. 3. SELLER ASSIST (If Applicable) (1-10) Seller will pay $ or % of Purchase Price (0 specified) toward Buyer s costs, as permitted by mortgage lender, if any. Seller is only obligated to amount Eh Estated Eb or percentage which is approved by mortgage lender. 4. SETTLEMENT AND POSSESSION (4-14) (A) Settlement Date is,,, Buyer and Seller agree. (B) Settlement will occur in county where Property is located or in adjacent county during normal business hours, unless Buyer and Seller agree orwise. Lif Buyer and Seller, rei eimbursing where applicable: homeowner asso ociation fees; water and/or sewer be prorated for period(s) covered. Seller will pay paymp M (C) At time of settlement, following will l be pro-rated on a daily basis betwe current taxes; rents; interest on mortga gage assumptions; condominium fees fees, toger wi any or lienabl ble municipal service fees. ges up to and including date of settlement and Buyer will all ollowing settlement, unless orwise stated here: (D) For purposes of prorating real estate taxes, periods covered are as lows: P_ 1. Municipal tax bills for all counties and municipalities inm ar re for period from January 1 to December PrSA School tax bills for Philade A lphia, Pittsb ur g Districts ar re for period from January 1 to December 31. School tax bills for all or school districts period July 1 to June 30. (E) Conveyance from Seller will be by fee simple warranty unl nle ess orwise stated here: (F) Payment of transfer taxes will be divided equally between and Seller unless orwise stated here: (G) Posse ession to a vacant Property free of debris, wi all structures Mfor Mare Ml Mo Mh Agreement, has identified in writing at Property ossession is to be delivered by deed, existing keys and and interest, if any, at day and time of settlement. Seller erty wiout written consent of Buyer. Buyer will Agreement, unless orwise stated in is Agreement. and made part of is Agreement. of any obligations of is Agreement are of SAMspecial delivered existing time unless MBuyer Mdeed Mfrom Mc MS Mn Man is to be by keys physical possession bro room-clean, at day and of Seller, befo fore signing is i s subject to a lease. (H) If Seller has identified writing Property is subject to a lease, po assignment of e taraoaf h y wi security deposits ill not e nt er in w leases, for Prop c kn owledge e ( at execution of is Tenant-Occupied operty AfoAPAR Aease(s) Al Aisting And Ax Aher Ag Ao A, Ap ArAPAeAhAtAo (PAR Form TOP) is attached 5. DATES/TIME THE ESSENCE (1-10) (A) will on or before: (B) all or and times identified for performance Sd Sparties SIS San SA SAy, SAe SAs xisti w xis a Written be The S dates DateS S essence e (C) The Execution Date of is date when Buyer and Seller have indicated full acceptance of is Agreement by signing and/or initialing it. For purposes of is Agreement, number of days will be counted from Execution Date, excluding Sbinding. SareSand Sis SAgreement day is Agreement was executed and including last day of time period. All changes to is Agreement should be ini- tialed and dated. (D) The Settlement Date is not extended by any or provision of is Agreement and may only be extended by mutual written agree- ment of parties. (E) Certain terms and time periods are pre-printed in is Agreement as a convenience to Buyer and Seller. All pre-printed terms and time periods are negotiable and may be changed by striking out pre-printed text and inserting different ferent terms acceptable to all parties, except where restricted by law. apll an SAgAnAiAlAaAiAtA SAaSA SngSA SAMPL easa nysa sesa nesa lesa AoAnA,AlA ianaiayaba saeasaaaea MhM PLE LE EEpending Eregulations Euntil Enot Lpay L,Ly, PLbefore Peen M Man MPennsylvania MPfoPdays MPchar SettlementS SandS SAddendumA SinS SstS SxiS SOFSStoS SAAatAinSA SofSDateSofSacceptanceSallS s)asettlement,adeed,amanm MofMandMcrM tom formp AllMPllP follpwilpandp LorLtoLupLL EEifE g lsa 63 Buyer Initials: / ASR Page 2 of 13 Seller Initials: / Pennsylvania Association of realtors

36 at ora ZONING (4-14) Failure of is Agreement to contain zoning classification (except in cases where property {and each parcel reof, if subdi- vidable} is zoned solely or primarily to permit single-family dwellings) will render is Agreement voidable at Buyer s option, and, if voided, any deposits tendered by Buyer will be returned to Buyer wiout any requirement for court ac ction. Zoning Classification, as set for in local zoning ordinance: 7. FIXTURES AND PERSONAL PROPERTY (4-14) (A) INCLUDED in is sale, unless orwise stated, are all existing items permanently installed in or on Property, free of liens, and or items including plumbing; heating; radiator covers; lighting fixtures (including chandeliers and c eiling fans); pools, spas and hot tubs (including covers and cleaning equipment); electric animal fencing systems (excluding collar s); garage door openers and transmitters; television antennas; mounting brackets and hardware for television and sound equipment; unpotted shrubbery, plantings and trees; smoke detectors and carbon monoxide detectors; sump pumps; storage sheds; fences; mailboxes; wall to wall carpeting; existing window screens, storm windows and screen/storm doors; window w covering hardwa are (including rods and brackets), shades and blinds; awnings; built-in air conditioners; built-in appliances; range/oven; any remain ining heating and cooking fuels stored on Property at time of settlement; and, if owned, water treatment systems, propane s satellite dish- es and security systems. Also included: TPL L (B) The following items are LEASED (not owned by Seller). Contact provid ider/vendor for more information (e.g., reatment systems, propane tanks, satellite dishes and security systems): (C) EXCLUDED fixtures and items: 8. MORTGAGE CONTINGENCY (4-14) WAIVED. This sale is NOT contingent on mortgage financing, ng, alough Buyer may obtain mortgage fina ancing parties may include an appraisal contingency. Etr Ewater Eand/or E ELECTED. (A) This sale is contingent upon Buyer obtaining mortgage financing according to terms:lfollowing First Mortgage on Property Second gage o Loan Amount $ Lo an Am unt $ Minimum Term years M in Term Lty M year rs Type of mortgage MPm MPp Ty age For conventional loans, Loan-To- Va al lu e ( LT V ) r MPr MPo MPF at io is n ot to c onal loans, Lo an-to o-valu ue (LTV) ratio is not to exceed % Pf Po Pe Pum PiPtPnPnt Pim MPyp MPc MPx MPe P % Mortgage lender Interest rate %; howev e r, Buyer ag I tpapat er agrees to accept interest rate as may be committe d by mo mortgage lender, not to exceed a max ximumm in nterest rate of %. Discount points, lo an origin ation, lo an pl ac em acement and or fees charged by lender as a percenta ge of m mortgage loan (exclud- ing any mortg gage ins ur an ce premi um s or V VA funding fee) not to exceed % ( 0% if not speci fi of mortgage loan. (B) Mortga gage Commitment Date Upo pon receiving mortgage commitment(s), Mrt Seller. ( LT gage loan. A particularr ma y be ne fayafafy LTV exceeds a specific el. The ap pra of a mortgage loan. The prai view, and may be higher r lo naaaan andsa The interest rate(s) fee(s) provisionsa yer right to guarantee AA interest rate(s)s a MPePgPaPag MPt derpnpeplpm rees to a nt ere %; however, Buye rtgag Pg rate as may be committed by % d a maximu um in nterest ra ate of e fe s unt poin nt ts, loan origin nation, loan pla by lender as a percentage of g MPrt Mlu Mh M Md Mn Man Mn (C) The Loan-To-Value ratio LT V cess ar ry t e lev ap sed value is wer an P (D) Al Aus Ai Ark Aar And AnAiAnAaAe Art ApAoArAPAeAe andsapa fee(s) ck in interest rate(s), Buyer will atssosdo option and as permitted lender(s), yer and/or mortgage above mpleted mortgage appli- mortgage lender(s) SAAbelowA SAMd SAMn SAMf S15 SAqu SAu ised o AcArAoAfo A) AMVA SAMo Ae ABuyer AMrt AMoMtMto AMin AMdi ny mortgage insurance premiu ums or AMun AMfu e daysame AMm % (0% if not specified) Med Mx Mged Mr Mha Ms Mi MD Mcee Mest Mn. MaMan will promptl deliver a copy of commitment(s) to as one tool to help assess ir potential risk of a mort or buyers might be required to pay additional fees if used by lenders to determine maximum amount subject to mortgage lender s underwriter rev of property. 8(A) are satisfied if mortgage lender(s) gives Buy Aice Appraiser, At Ad Ae Ab Ay Aay Am A, Ao Al As AMnM)MeMeMfMfe AMoMlMeMgMag S ptly pri aragraph maximum levels stated. If lender(s) gives Buyer right to loc befo efore Settlement Date. Buyer gives Seller right, at Seller s sole by law Sand to ibute financially, wiout promise of reimbursement, to Buy lender r(s) akesto mortga age term(s) available to Buyer. (E) Wiin (7 not speci ecified) from Execution Date of is Agreement, Buyer will make a com cation (including payment for and ordering of credit reports wiout delay) for mortgage terms and to identified in Paragraph Scontri SAap SdaysSabove SmS 8(A), if any, orwise to a responsible mortgage lender(s) of Buyer s choice. B roker for Buyer, if any, orwise Broker for Seller, is auorized to communicate wi mortgage lender(s) to assist in mortgage loan process. Broker for Seller, if any, is permitted to contact morgage lender(s) at any time to determine statu us of mortgage loan application. (F) Buyer will be in default of is Agreement if Buyer furnishes false information to anyone concerning Buyer s financial and/or employment status, fails to cooperate in good fai wi processing mortgage loan application (including payment for and ordering of appraisal wiout delay), fails to lock in interest rate(s) as stated in Paragraph 8(D), or orwise causes lender to reject, or refuse to approve or issue, a mortgage loan commitment. SgageAMPLE fam M lmmpopy MPdPe e AMA lender( MPo PmP mopl unpl MoPL SAeAcA SurSA SAmArAoA/AdAiArA SAnSA SetSA SAlSA SAoSA PS chsa ds assa ersa esa misa vasata ba ieam SAM AVA AMhAM AMtgMtMP AkA AMP AMP d)am ofam tam MPLE M.M MeM MP fm epmp nm tmp MP emplrlelplolrlplelhltl PoP PrP eptpsp ep rtpl LnL LE E Etanks, PePvPnPnv Ptg Prt P_P P e Mr MtMoMn McMxMeM(MnMaMan MaMgMt Mo Mr, Man Mng Mrg Mar MP MoMlMeMgMaMag Me Mg SheS SmortgageS SifS leasts AbyAdA AinA AtyA AaiA ArtA eda M Mud-M MeeM Mr,M MdeM MccM MenM PtgP rmp EonE SAiAlAaAu SAfAo 126 Buyer Initials: / ASR Page 3 of 13 Seller Initials: / 34 Pennsylvania Association of realtors 2015

37 (G) 1. If Seller does not receive a copy of mortgage commitment(s) by Mortgage Commitment Date, S eller may terminate is Agreement by written notice to Buyer. Seller s right to terminate continues until Buyer delivers a mo ortgage commitment to Seller. Until Seller terminates is Agreement pursuant to is Paragraph, Buyer must continue to mak ke a good fai effort fort to obtain mortgage financing. 2. Seller may terminate is Agreement by written notice to Buyer after Mortgage Commitment Date if mortgage commitment: a. Does not satisfy terms of Paragraph 8(A), OR b. Contains any condition not specified in is Agreement (e.g., Buyer must settle on anor property, an appraisal must be received by lender, or mortgage commitment is not valid rough Settlement Date) a at is not satisfied and/or removed in writing by mortgage lender(s) wiin 7 DAYS after Mortgage ae Commitment Date in Paragraph 8(B), or any extension reof, or an ose conditions at are customarily satisfied at or near E settlement tlement (e.g., obtaining insurance, confirming employment). 3. If is Agreement is terminated pursuant to Paragraphs 8(G)(1) or (2), or mortgage loan(s) is not obtained for settlement, all deposit monies will be returned to Buyer according to terms of Paragraph 26 and is Agreemen nt will be VOID. Buyer will be responsible for any costs incurred by Buyer for any inspections or certifications obtained according to terms of is Agreement, and any costs incurred by Buyer for: (1) Title search, title insurance and/or mechanics lie en e, or any fee for cancellation; (2) Flood insurance, fire insurance, hazard insurance, min ne subsidence L insurance, or ncellation; (3) Appraisal fees and charges paid in advance to mortgage lender(s). (H) If mortgage lender(s), or a property and casualty insurer providing insurance required by gage requires repairs to Property, Buyer will, upon receiving requirements, deliver a copy of requirements oe5. DAYS of receiving copy of requirements, Seller will notify Buyer makele wher Seller will req t Seller s expense. 1. If Seller makes required repairs to satisfaction of mortgage lender and/or Buyer Prop operty and agrees to RELEASE in Paragraph 28 of is Agreement. Eiin EW Ecanc Eat 2. If Seller will not make required repairs, or if Seller fails to respond wiin stated time, er will, wiin 5 DAYS, notify Seller of Buyer s choice to: a. Make repairs/improvements at Buyer s expense, andpl wi permission access Property en by Seller, which will not be unreasonably wiheld, OR b. Terminate is Agreement by written notice to Seller, wi all deposit monies returned Buyer ac LBuye L LE Lgiv M ccording to terms of Paragraph 26 of is Agreement. If Buyer fails to respond wiin he time st at e MPH MP( MP8 d in P ar agr ap h fpapils to terminate is Agreem ment by written notice to Seller wi hin hat time, Buyer will l accep t t he P P(2P) MPk roper ty, make required repairs/improvements ments at Buyer s expense and agree to RELEASE in Paragrap h 28 of is Agreement. FHA/VA, APPLICABLE (I) It is expressly notwistanding any provisions of to complete pur- chase of agreed at or is Buyer not be obligated Property desc cribed herein or to incur any of earnest rwise unless Buyer has been given, in ordance wi HUD/FHA or writte ousing Commissioner, Veterans ation, or a Direct Endorsement perty of not less an ( Purchase stated rivilege and option of proceeding consummation of contract regard he appraised valuation is arrived to determine maximum of will insure. HUD does not ant value nor condition Property should satisfy and condition of rty are acceptable. Warning: 1010 MLender Ma Mby Mcontract, and Federal Housing ransactions, Whoever of such Department, makes, passes, utters publishes title or imprisoned not more an two years, bo. U.S. Department Housing s Acknowledgement Buyer received HUD nds importance of independentsa getting an home Buyer understands at performsainspectiona NoticeA andaau.s.c., A18, Amortgage S Section of MH MDepartment Mamou M MAgree Mis Min MVA Ml money will deposits or ot acco en state atement by Federal Ho Administrat he appraised value of Prop $ ement). Buyer will have pr wi oun of appraised valuation. Th at Housi ing and Urban Development warran himself/herself at price Propert of Housing and Urban Development Administration T for purpose of... inf fluencing in any way action or statement, ng same to be false shall be fined under is (J) Development (HUD) NOTICE TO PURCHASERS: Buyer has Your Protection: Get a Hom me Inspection. Buyer understands and has ought about is befo fore signing is Agreement. Ao AY Aknowin FHA will not inspection nor guarantee price or con ndition of Property. (K) C Sell ller(s) and Buyer(s) party to is tran nsaction each certify at ter rms of is contract for purc rchase tostruesare best of our knowledge and belief, and at any o her agreement entered into by any of se parties in connec ection is attached to is Agreement. 9. CHANGE IN BUYER SStransaction FINANCIAL STATUS (4-14) In event of a change Sis Sundersigned, Sa SeSWSWe SA For in Buyer s financial status affecting fecting Buyer s ability to purchase, Buyer shall promptly notify Seller and lender(s) to whom Buyer submitted a mortgage application, if any, in writing g. A change in financial status includes, but is not lim- ited to, loss or a change in employment; failure or loss of sale of Buyer s home e; Buyer s having incurred a ne ew financial obligation; entry of a judgment against Buyer. Buyer understands at applying for and/or incurring an additional fin nancial obligation may affect Buyer s ability to purchase. 10. SELLER REPRESENTATIONS (4-14) (A) Status of Water Seller represents at Property is served by: Public Water Community Water On-site Water None L IFMP, Buyer S ofsa orsata ofamp PL LE Elender(s), Eany Einsurance, Eccepts Erepairs Equired Efor Efee LLto PrPoP)Pfa Mwiout Mrequirements, Mforfeiture Mpenalty MP Mfor Msetting CertificationS SwiSSS SAUrbanA SAMP homeaprovides,a AanyA itlea MPLE MasMPriceM MBuyerM.M MM tom edp LtoLinsurer,LE ESellerE EE EmortgEacEtoE 190 Initials: / ASR Page 4 of 13 Seller Initials: /

38 gpa ipcpac EuEsEe (B) Status of Sewer 1. Seller represents at Property is served by: Public Sewer Community Sewage Disposal System Ten-Acre Permit Exemption (see Sewage Notice 2) Individual On-lot Sewage Disposal System (see Sewage Notice 1) Holding Tank (see Sewage Notice 3) Individual On-lot Sewage Disposal System in Proximity to Well (see Sewage Notice 1; see Sewage Notice 4, if applicable) None (see Sewage Notice 1) None Available/Permit Limitations in Effect fect (see Sewage Notice 5) 2. Notices Pursuant to Pennsylvania Sewage Facilities Act Notice 1: There is no currently existing community sewage system available for subject property. Section 7 of Pennsylvania Sewage Facilities Act provides at no person shall install, repair or occupy any building or structure for which an individual sewa installed, permit. Buyer is advised by is notice at, before signing is Agreemen contact administering Act to determine procedure and requirements for ob for an individual local agency charged wi administering Act will be municipality Property located working cooperatively wi ors. Notice 2: This Property is serviced by an individual sewage system inst of Section 7 of Pennsylvania Sewage Facilities Act. (Section 7 prov constructing, awarding a contract for construction, altering, repairing or con parcel or lot is subdivided from a parent tract after January 10, 1987). Buy ye and at, should he system malfunction, owner of he Propert ty or pr op may be held liable for any contamination, pollution, public healt haz ar d o Notice 3: This Property is serviced by a holding tank (permanent or carrying system and which is designed and constru ructed to facilitate Pursuant to Pennsylvania Sewage Facilities Act, Seller must provide from date of its installation or December 14, 1995, whichever is late Notice 4: An individual sewage system has been installed at an isolation distance tance specified by regulation. The regulati tions at 25 Pa. Code pertaining provide guidance. Subsection (b) of states horpl he ten r it m ay ot r i dual weweees e t r n u whichle E re construct, request bid proposals for construction, alter, age system is to be wiout first obtaining a nt, Buyer shou ould local agency charged wi btaining a permit sew wage system. The ity wher ere is municipality talled under LEr temporary) conveyed ultimate Ewe EeEtEiEsEd En Eh Eor L t -acre pe pr ides at a pe rm n nstalling, nnecting to an ind iv ten-acre er is advised at soils o o ucted rt ies se rv ice d b Ea history er. at minimum rizontal distance L LEat LEs LEm y f a m l unction is an ce wh ic LEs ur to sewage by a water te of sewage Elfu Eondu Ec EgEnEiEtEsEeEtEa Ean Ea Ef Ee Eb Eu Erovisions En Ei Ep Em Eat anor site. a Lof of mainta taining tank is less an dishorizontal ontal isolation distances isolation bet etween an individual water Lat Lwell supply or water supply system suction line and treatment tanks bepshall feet. Subsection (c) of states at horizontal isolation distance between individual water supply water supply system suction line and perimeter of absorption area shall be 100 feet. Notice 5: This lot is wiin an area in which per tpcpepfpfe and is subject to ose limitations. Sewage facilities apage facilities may not begin until municipality com- lities Ac t an nd regulations promulgated reunder. P50 rty unle less orwise stated here: be preferentially assessed for tax purposes under ow): 1; 3 P..S. 901 et seq.) PS MPor MPr MPa mit limi epnpipe fpfpff are not available for is lot an d cons tr ru ction of a s tr ru c tu ur to e rv epspypbpd pletes a maj jor planning re equire men t p ur su an nt to e P nn lvan a S ew (C) Historic Preservation Ps Seller is not aware of historic normalaa preservation restrictions (D) Land Use Restrictions 1. Property, or a portion of it, is subject restrictions and may follow owing Act(s) ( see Notices Regarding Land Restrictions below) Agricultu l Ar a Sec ur AM- AMt ity amfm-mo of 198 Farmland an d Forest Lan me nt CM(MtMcMA Green Prog Open ct ( A MProper M SAMg ur a e 3 gram; Act 319 of 1974; 72 P.S et seq.) Space A Md Mn Man M43 M; Mc MA MmMrMrm MPve et seq.) Conse Re am 3831 et seq.) Or 2. Notices Regarding UseALand a. PennsylvaniaSARestrictions The you are buying take place. Pennsylvania agricultu resources for production where agricultur operations may be subject AU Ar Ar Ae As AS A2 A3 A; A7 A6 A9 Apro A: AC. A. A1 A( b. Clean Program Proper enrolled in Clean and andsment. have been advised of need to contact is to determin property tax implications at Sin SSeller Seen SAP. SAe rv at ion roperty tural ural A44 At AMht S may be located in an area where agricultural operations of food and agricultural products. The law limits to nuisance lawsuits or restrictive ordinances. perties Green Program receive preferential property tax assess- en e County Tax Assessment Office fice before execution ne will or may result from sale of Property, or at as a result of any change in use of Prop perty or land from which it is being separated. c. Open Act This A enables counties to enter into covenants wi owners of land designated as farm, forest, water supply, or open space land on an adopted municipal, county or regional plan for purpose of preserving land as open space. A Sof SSin SresultSmay Sfuture covenant between owner and county is binding upon an ny Buyer of Property during period of time at covenant is in effect fect (5 or 10 years). Covenants automatically re enew at end of covenant period unless specific termination notice procedures are followed. Buyer has been advised of need to determine restrictions at will apply from sale of Property to Buyer and property tax implications ions at will or may result from a change in use of Property, or any portion of it. Buyer is furr advised to determine term of any covenant now in effect. fect. (AM GrSA SAMto w and ole LEtEmEiEtEtEtEe o h 2A ndam 1A AsAM tyam LAM seam ssam remp MPL MenMP lvmp tomp nimp bemp tamp SAMP S:S AvA AcA aam RiAM symp timp smp onmp PLE PrP FPeP apfpwpep LEeLE LEyLE ccle ule hele rsle ale EbE E qe fe teseyeseeegeae eeme ee Ein Ea EeEhE Ewh Efo Lcost Lannual LĖtElElt Lto Mland Mregarding MnMaMan MeMlMt Mar Mh SAgreementS circumstancessaprotectsa SSpaceSBuyerSRight-To-FarmAogrA AofA AActA AamA MuseM MUseM PLminimumL PLaLomLfrLLdisposalLEreE EmEitE EedE EirE ExeE EisEEequE OSActAMPLE 251 Buyer Initials: / ASR Page 5 of 13 S eller Initials: / 36 Pennsylvania Association of realtors 2015

39 ephptp d. Conservation Reserve (Enhancement) Program: Properties enrolled in Conservation Reserve Program or CREP are environmentally-sensitive areas, owners of which receive compensation in exchange for an agreement to maintain land in its natural state. Contracts last from 10 to 15 years and carry penalties to Seller if terminated early by Buyer. Buyer has been advised of need to determine restrictions on development of Property and term of any contract now in effect. Seller is advised to determine financial implications at will or may result from sale of Property. (E) Real Estate Seller Disclosure Law Generally, Real Estate Seller Disclosure Law requires at before an agr reement of sale is signed, seller in a residential real estate transfer must make certain disclosures regarding property to pote ential buyers in a form defined by law. A residen- tial real estate transfer is defined as a sale, exchange, installment sales contract, lease wi an option to buy, grant or or transfer of an interest in real property where NOT LESS THAN ONE AND NOT MORE asle THAN FOUR RESIDENTIAL E DWELLING UNITS are involved. Disclosures for condominiums and cooperatives are limited to seller s particular unit(s). Disclosures regarding common areas or facilities are not required, as ose elements ar re already addr dressed in laws a hat govern resale of condominium and cooperative interests. (F) Public and/or Private Assessments 1. Seller represents at, as of date Seller signed is Agreement, no pu ublic improvement, condominium eowner asso- ciation assessments have been made against Property which remain unp npaid, and at no notice by auority (excluding assessed value) has been served upon Seller or anyone behalf, including lations of zoning, housing, building, safety or fire ordinances at rem ema and at at would constitute a violation of any such ordinances at remai ain unc orwise here: 2. Seller knows of no or potential notices (including violations) ions) and/or assessments follows: (G) Highway Occupancy Permit Access to a public road may require issuance of a highway occupancy perm from Eno Eor L t or public on Seller s g to vioain uncorrected, condition corrected, unless except mit Transportation. E Eo Ehomeo n. 11. WAIVER OF CONTINGENCIES (9-05) If is Agreement is contingent on Buyer s right to inspect and/or repair Property, or nmental conditions, boundaries, certifications, zoning classification or use e, or any or information nplinsurability regarding s failure to exercise any of Buyer s options wiin times set for in is Agreement is a WAIVER of contingency and Buyer accepts Property and agrees to RELEASE in Parag agraph 28 of is Agr Lof LBuyer s L, LDepartment M bm 12. BUYER S DUE DILIGENCE/INSPECTIONS (4-14) (A) Rights and Responsibilities 1. Seller will provide access to insurers rep resentatives ti and, b quired by is Agreem ement or by mortgage lender(s), to surveyors, municipal officials, ficials, appraisers and inspectors. ir real estate licensee(s) may attend any inspections. 2. Buyer may make two pre-set ettlement walk k-rough inspections ProP operty. Buyer s right to se inspections is not waived by any or provision of is Agreement. 3. Seller will have heatin ing and all utilities (including PanPan Ps inspections/appraisals. 4. All inspectors, including home A inspectors, ar e ide a copy of any inspection Report to Broker for Buyer. 5. Seller has right t, upon request, to receiv e eport fr rom party for whom it was prepared. (B) Buyer waives or elects at Buyer s expense ions, certifications, and investigations (referred to as Inspection or Inspections ) performed by me inspectors, engineers, architects and or properly licensed or orwise qualified professionals. nvasive, unless orwise agreed in writing. If same inspector is inspecting more an one system, Home Inspection Law. (See Paragraph 12(D) for Notices Regarding Property and Environmen Inspections) (C) For elected Inspection ( s), B uy Me Mr Mfr Mr Me Md Mfor Mon MPmay MPe MPi MPt MPdPr of au prov a f of a i Re inspections, hom be non-invasive, com mply wit ntal Mno Mshall Mon Mc Me Mp Mi My MB Mh M Mut MPar tingency Period stated in Paragraph 13(A), complete Insp Inspection Reports SAe SA( resul Reports ), and accept Property, terminate is written corrective proposal SellerAto terms of Paragraph 13(B). Home/Property Inspections o Hazards (mold, etc.) Elected Buyer m ay con P structural components; roof; exterior windows and ex / exterior buil a iacasaaafafa d d ts; swimming pools, hot tubs and spas; applianc systems; sewer systems; heating and cooling systems; water pene A Aed Arr Af Afe As A; Ars Aut AEnvir Ai Ad As Aa AR AC Ah AMinspections AMcontractors, AMfollowing Aublic Adownspout And Aan Aty s Ae Aonmental A Ag Art tromag w Apla Aod n ards oses( ir quali, asbest home inspection a Sby SmSeSe Sc Si St Se lafaflo ain delineation; structure square footage; mold and or enviro tos, underground storage tanks, etc.); and any or items Buye I of Property, as defined in Home Inspection Law, hom home Sfu SrSrmSoSfSfoSrSbSt SoStSsStScSeSlSeSrSeSy Su SB Sy, Sty San SA SAMinspector SAM SAMAll S pections, obtain any Agreement, or submit a xterior doors; Waived ces; electrical / pub etration; eleconmental haz- er may select. me inspection mu y ull member good standing of a national inspection association, or a person super- vised e of a nat tional home inspection association, in accordance wi eical standards and code of conduct practice of hat association, by a properly licensed or registered engineer or architect. (See Notices Regarding Property SmSlSlSuSfSfuSaSySb Sd SmSrSoSfSrSeSe Se SrmSfoSbSt Ss & Environmental Inspections) Wood Infestation Elected Buyer may obtain a written Wood-Destroying Insect Infestation Inspection Report from an inspector certifi ied as a Waived / wood-destroying pests pesticide applicator and will deliver it and all supporting documents and drawings provided / by inspector to Seller. The Report is to be made satisfactory to and in compliance wi applicable laws, mortgage lender requirements, and/or Federal Insuring and Guaranteeing Agency requirements. The Inspection is to be limited to all readily-visible and accessible areas of all structures on Property, except fences. If Inspection reveals SnS SAdA SAgA,AaA,AlA SAiSA SduSA SAM SpSeS SbS tsis ndsa tlsa exsa asa tesa ctsa risa ansa oa AbAmAuA ArA AeA AMP lapara tacaeapasa PA wa MPL MP MPpMP ym AMP llmp PLE WPL LE Especified Erelating Eany Enotices Egovernment Lverify Lto Lenvironmental Ly, Mprofessional MMhave Man Mfuel(s)) MPbe Mto Min My Mu Mall eement.p SavS ShavS SorS SriS SnSteS SngS SdiS SndS Ss;S SldS SfieS SfiS S,SiSgSnSuSunSfSfuS,S.SgS.S matsa ndsa tea riaita Al,A AandA AorA AaA,AccA AwilA toa ManM MzeM MmustM MoriM ofm PLPropertyLL reqpasmplatleknowse ofesellere SAMy SAfAoAnAoAiAn M L 314 Buyer Initials: / ASR Page 6 of 13 Seller Initials: / Pennsylvania Association of realtors

40 active infestation(s), Buyer, at Buyer s expense, may obtain a Proposal from a wood-destroying pests pesticide appli- cator to treat Property. If Inspection reveals damage from active or previous infestation(s), Buyer may obtain a written Report from a professional contractor, home inspector or structural engineer at is limited to structural damage to Property caused by wood-destroying organisms and a Proposal to repair Property. Deeds, Restrictions and Zoning Elected Buyer may investigate easements, deed and use restrictions (including any historic preservation restrictions or ordi- Waived / nances) at apply to Property and review local zoning ordinances. Buyer may verify at present use of / Property (such as in-law quarters, apartments, home office, fice, day care, co mmercial or recreational vehicle parking) is permitted and may elect to make Agreement contingent upon an ant ticipated use. Present use: Water Service Elected Buyer may obtain an Inspection of quality and quantity of water s licensed / qualified water/well testing company. If and as required by inspection at Seller locate and provide access to on-site (or individual) water system. Se Property its condition, at Seller s expense, prior to settlement. Radon Elected Buyer may obtain a radon test of Property from a certified inspector. Environmental Agency / (EPA) advises corrective action if average annual exposure to radon i higher an levels or 4 picocuries/liter (4pCi/L). Radon is a natu ural, radioactive gas at is of uranium and radium. Studies indicate at extended exposur re to hig h lung cancer. Radon can find its way into any air-space and can permeat e a st problem, it usually can be cured by increased ventilation and/or by preventing AnyLE E ystem from a properly or orwise Waived company, Seller, s expense, will / eller will restore to vious The U.S. Waived s equal to or working / produced in e gro un ay levels of radon ra adon entry tests, or safeguards a building for radon in Pennsylvania must be certified by Department Eis Er EhEtEaEeEe Ec Ee Eal EhEtEyEbEd E0.02 EProtection Information about radon and about certified testi ting or mitigation firms rough Environmental Protection, Bureau of Radiation Protection, 13 Floor, Rachel ffice Box 8469, Harrisburg, PA , (800) 23RADON wwwler LEc LEn LEi g ru c tu re. house has. person who mitigates he Ef Eo Ey E_ Protection. on. Department ent of ing, P..O. or (717) On-lot Sewage (If Applicable) Elected Buyer may obtain an Inspection of individual on-lot sewage posal system qualified, professional Lfice LOf / inspector. If and as required by inspe pection company,, at will locate, provide access to, and empty individual on-lot sewage disposal system. Property to its condition, at hmprestore f nformation regarding Individual On-lot tpapat n for property and casualty insurance for PLBuildin M ied, Waived / previous Seller s expense, prior to settlem ment. See Paragraph 13(C) more in Sewage Inspection Contingency. Property and Flood Insurance Elected Buyer may determine he insurability of e Prope ng ap Waived / Property to a responsible insurer. Broker fo r B Ppp Broker fo or Seller, may communicate wi / insurer to assist in insura specially-designat ted flood zone, Buyer may eed to be ordered 14 days or more prior to substan ntially increase future flood insurance hould consult wi one or more flood insur- increases. MP PSeller and/orsaa nce process. If in a be required to carry flood insuran ce at Bu, ay ne Settlement D ate. Revised flood m aps an e ay premiums or requ ire insur an c Boundaries services surveyor title certainty and of requirement ofa AMl AMr SAMs ding e n MoMtMsMeMgMnMdMn M Mr Mc Mt M, My MPfor AMe e fo r fo i s ance agents regar ee constructed barriers mayaor of size of property approximations Lead-Based Hazards obligated purchase risk assessment inspection iss Ato Amay Aproperty AManMan AMur AMn d fo r fl m Prope perty Elected Buy uyer may engage abstractor, tor or or qualified professional to assess legal Waived / description, Memium Mbl MdMnMaMan Muyer MB M. MaMan Mm Mc Mh Mp Mo Ml Ms Mi Mro Mwise S and/or qua uantum of land. Most sellers have not had Property sur- / veyed as it is not a in Pennsylvania. An ny fences, hedges, walls and or natural or represent true boundary lines of Property. Any numerical representations only may be inaccurate. Paint built prior to 1978 only) Elected Before resid idential dwelling built prior to 1978, Buyer has option to conduct a Waived / Property for presence of le ad-based paint and/or lead-based paint haz- / Aoperties APr Aand A ards. Regardless wher insp pection is elected or waived, he Residential Lead-Based Paint Hazard Reduction a seller of property built prior to 1978 to provide Buyer wi an EPA-approved lead hazardsspamph phlet titled Protect Your Family from Lead in Your Home, along wi a sep- ara rate attached is Agr eement, disclosing Seller s knowled dge of lead-based paint hazards and any lead-b d-basedsattached regarding Property. Or Elected SformSinformation Ses Sequir SBuyer SAtransfer SAboundaries Srecords Sto Waived / / The Inspections elected above do not apply to following existing conditions and/or items: (D) Notices Regarding Property & Environmental Inspections 1. Exterior Building Materials: Poor or improper installation of exterior building materials may result in moisture penetrating surface of a structure where it may cause mold and damage to building s frame. alee L If LEa SAMP ofsa AMiAM AMmAM AaA AMrAM ofam aam flam ooam MPL MyM MtyMP MxM MhM M,M MeMcMdAMMhMcM pm umrm bymp mamp kimp PLE apcpiplp opip sp LaL asle cle EdE AMxMtMpMmMe Eradon Eprevious EmErErm EoEnEeE En LStateLCarson Lavailable Lis LEnvironmental LEkEeEsEnLEaLEan PL.epa.gov Pexpense, MPwill Mr MertMpMoMrMpMy Mat Mty M Mrt Maw Man Muy Sform,SpaintSrSActSAlocationAAisAAofAA(ForAAareSA AnotA MrtM MFedM MseM MtyM MerM Mr,M MyeM MnyM MifM enm PrePPfromL dispplofl 379 Buyer Initials: / ASR Page 7 of 13 S eller Initials: / 38 Pennsylvania Association of realtors 2015

41 lpbpapab Asbestos: Asbestos is linked wi several adverse heal effects, fects, including ing various forms of cancer. 3. Environmental Hazards: The U.S. Environmental Protection Agency has a list of hazardous substances, use and disposal of which are restricted by law. Generally, if hazardous substances are fou und on a property, it is property owner s responsi- bility to dispose of m properly. 4. Wetlands: Wetlands are protected by federal and state governments. Buyer may wish to hire an environmental engineer to investigate wher Property is located in a wetlands area to determin ne if permits for plans to build, improve or develop property would be affected fected or denied because of its location in a wetland ds area. 5. Mold, Fungi and Indoor Air Quality: Indoor mold contamination and inhalation of bioaerosols (bacteria, mold spores, pollen and viruses) have been associated wi allergic responses. 6. Additional Information: Inquiries or requests for more information ab bout asbestos and or hazardous E substances can be directed to U.S. Environmental Protection Agency, Ariel Rios Buildi ing, 1200 Pennsyl sylvania Ave., N.W., Washington, D.C , (202) , and/or Department of Heal, Commonwealt of Pennsylvania, Division of Env nvironmental Heal, Harrisburg, PA Information about indoor air quality issues is avai ilable rough Pennsylvania Depar artment of Heal and may be obtained by contacting Heal & Welfare Building, 8 Floo or West, 625 Forster St., Harrisbur PA 17120, or by calling INSPECTION CONTINGENCY (4-14) (A) The Contingency Period is days (10 if not specified) from Execution in Paragraph 12(C). (B) Except as stated in Paragraph 13(C), if result of any Inspection elected will, wiin stated Contingency Period: 1. Accept Property wi information stated in Report(s) and agree 2. Terminate is Agreement by written notice to Seller, wi all deposit Paragraph 26 of is Agreement, OR Eg, Agreement Inspection toeunsatisfactory to monies according E EBuye EA EP al L Date of is n elected in Paragraph 12(C) r, Buyer e RELEAS LEp t, OR returned to Buyer terms of Ement Ee Egr EA Es Ei Ea EfEoE8E2Eh 3. Present Report t(s) to Seller wi a Written Correctiv e P ro posa l ( P ro pos al ) lis nloliltlclct desired by Buyer. The Proposal may, but is not required to, include he n am e( s) of a properl y licen s al(s) perform cor- rections requested in Proposal, provisions for paym en t, including retes t an d a of corrections. Buyer agrees at Seller will not be held liable for correction s at do n mply governmental require- ments if performed in a workmanlike man nner according to e te rm s uy r s Pr LdLuLq LquLr L/ Ld LnLcLg Li Lr Lnd Ll Le Lg LhLt LLmpletion Lor Lfo Lp Lon Li Lcredits Ls LEap LEr arag m to or a. Following end of Conting en cy Perio MPe d, B uy er an d Sell av Period. t lpfpi Pll Pw Pr PLfLeLtLaLat M days (5 if not specified) for a Negotiation (1) During Negotiation P er iod, Seller wi MPt h terms of Buyer s Proposal or negotiate, by written a ment, providing for any repairs or improvements to o mortgage lender, if any. ypuyer and Seller enter into anor mutually acceptable PtP apnpe se nt a B er accep RELEASE in Paragraph 28 of is Agreement and ds. written agreement if fails to respond, during Negotiation Period, wiin following on Period, Buyer will: Property in s) and agree to RELEASE in Paragraph 28 of is Agreement, OR is Agreement notice eposit monies returned to Buyer according to terms Paragraph 26 is Agreement. Seller do Mstated Mof MtMend Mreached, Me Mg Ma MPtt MPr lly accep Pis MPat MPo ll ei er agre lpapypfpfy or verbal communicat io n, an o er mu tu ab gpw Property and/ /or an y credit to B uy er at tl a (2) If Seller agrees to satis fy ll e terms of osal op, written agreement t, Buy ts e Pro Negotiation Period en b. If no mutually acceptable day ys (2 if not specified) (1) Acce cept wi rt(s (2) Terminate written wi all de of of If Buyer written Seller and agree to RELEASE ina and M, MReport( M MSeller Mor Md Mn MPcc S accepta ptable written agreement, and Buyer does not terminate is Agreement by time allotted in Par ragraph 13(B)(3)(b), Buyer will accept Property 28 of i his Agreement. On ngoing negotiations do not automatically extend Negotiation Period. (C) If a Repo rt reveals existing individual on-lot sewage disposal system, Seller may, wiin d ay s ( 25 if not f t submit a Proposal to Buyer. The Proposal will include, but not be limited to, name of e c rfo hata or replacement; provisions for payment, including retests; and a projected comple- Awiin Ato Amutually Aon Ai As An At, Aor Ap AR Ah A Ac Aa Al Aep Ar AdAnAaApAd AParagraph tion date fo m sures. Ahin AtAiAWAWi 5 DAYS of receiving Seller s Proposal, or if no Proposal is provided wiin s tated t nsmsi y Seller in wr riting of Buyer s choice to: 1. A Proposal, accept Property and agree to RE ELEASE in Paragraph 28 of is Agreement, OR 2. Ter erminate issby written notice to Seller, wi all deposit monies returned to Buyer according to terms of Parag graph is ment, OR 3. Accept he Property and existing system and agree to RELEASE in Par ragraph 28 of is Agreement. If required by any mort- gage lendersa So Sc Sr Sh Si So SsSmSrSrmSeStSeShSt SSoSt StoSe Se Sr Sgr Sfy SAgreement and/ /or any governmental auority, Buyer will correct defects before settlementt or wiin time required by mortgage lender and/ /or governmental auority, at Buyer s sole expense, wi permission and access to Property given by Seller, which may not be unreasonably wiheld. If Seller denies Buyer permission and/ /or access to correct defects, Buyer may, wiin 5 DAYS of Seller s denial, terminate is Agreement by writt ten notice to Seller, wi all deposit monies returned to Buyer according to terms of Paragraph 26 of is Agreement. If Buyer fails to respond wiin time stated in Paragraph 13(C) or fa ails to terminate is Agreement by written notice to Seller wiin at time, Buyer will accept Property and agree to RELEASE in Paragraph 28 of is Agreement. ile PLEE L E n MPs MPi MPL PfPL opbupl uypl otpl copl s,pl SoS SAmA SnySA SAgAnAiAeArA SAeSA SAMP ts is tosa fsa iesa pesa hesa d)sa fa nesa AxAeAeA vaiaeaca xaeaoata byam MPtMP rm uymp am r MP memp PrMP opmp nmp t,mp abmp asmp lemp PLE PlPlP PeMPBPrP upbpeplp tp epeprpgp hpepl apl LoLmL LdLdLeLtLcLeLjL LeLrLrLoL al arle agle E Eis Efor EPA Lfe LrLoLd Ld/ LoLoj LiLlLaLeLiLfLfiLe PLaLgLtLrLrt PtPpPe Minformation Mty MNegotiation Man SanyS SoSmpS SifiSA SecS SspS SctS SrreS SrrS SllS SofS26SSisSwSrSeSySuSuySBS,SeS S ivs oranoticeaareachanotamtym MtoM MpeM MisMheM avep opl osl wil al.lprl EtoE eache 442 Buyer Initials: / ASR Page 8 of 13 S eller Initials: / Pennsylvania Association of realtors

42 Ao Pall REAL ESTATE TAXES AND ASSESSED VALUE (4-14) In Pennsylvania, taxing auorities (school districts and municipalities) and prop perty owners may appeal assessed value of a property at time of sale, or at any time reafter. A successful appeal by a taxing auority may result in a higher assessed value for property and an increase in property taxes. Also, periodic county-wide property reassessments may change assessed value of property and result in a change in property tax. 15. NOTICES, ASSESSMENTS AND MUNICIPAL REQUIREMENTS (4-14) (A) In event any notices of public and/or private assessments as described ed in Paragraph 10(F) (excluding assessed value) are received after Seller has signed is Agreement and before settlement, Seller will wiin 5 DAYS of receiving notices and/or assessments provide a copy of notices and/or assessments to Buyer and will notify Buyer in writing at Seller will: 1. Fully comply wi notices and/or assessments, at Seller s expense, e, before settlement. If Seller E fully complies wi notices and/or assessments, Buyer accepts Property and agrees to he RELEASE in Paragraph 28 of is Agreement, OR 2. Not comply wi notices and/or assessments. If Seller chooses not to comply wi notices and/or assessments, or fails wiin stated time to notify Buyer wher Seller will comply, Buyer will notify Seller in writing wi iin 5 DAYS at Buyer will: a. Comply wi notices and/or assessments at Buyer s expense, accept Property, and agree RELEASE in Paragraph 28 of is Agreement, OR b. Terminate is Agreement by written notice to Seller, wi all deposit monies returned to Buyer of Paragraph 26 of is Agreement. If Buyer fails to respond wiin time stated in Paragraph 15(A)(2) or fails to terminate yeregeaes tt to Seller wiin at time, Buyer will accept Property and agree to e RELEASE in P ar LEo LE8 ag ap (B) If required by law, wiin 30 DAYS from Execution Date of is Ag reem Settlement Date, Seller will order at Seller s expense a certification from of any uncorrected violations of zoning, housing, building, sa fety or fire ord Ei Eaccording Ef LEr e ap pro nces E5 E. Ent Enotice Ee E Eto ERE E L terms n en t, b ut in at S prior to pri at e un m notice in an an Esing Eo El Ec Ei Ed E) Er tting occupancy of Property. If Buyer receives a notice of any required repa ir s/ improvemen ts, B uyer w of notice to Seller. 1. Wiin 5 DAYS of receiving notice from municipality at repairs/improvements of notice to Buyer and notify Buyer in writi iting at Seller will: a. Make required repairs/improvement ts to satis fa ction of e m nplrequired, ments, Buyer accepts Property and agrees to e RELEAS ar LvLoLrLp Ll Lp LEte Lopy Lermi Lt Lc Li Lf LErt LEar b. Not make required repairs/impr provements. If Seller chooses notp ep ES EAY arelseller will deliver a copy ipality. h requ uired repairs/improve- r aph OR Lnt, Lm Lr Lg L Ls Lk Lak M t required repairs/improvements, Buyer will notify Seller in writing wiin 5 DAYS at Buyer will: (1) Make repairs/improvem ements at Buyer s expense, permis and access to Property given by Seller, which will not be unreasonabl bly wiheld, OR (2) Terminate is Agree eement by written notice to wi de eposit monies returned to Buyer according to terms of Paragraph 26 of is Agreement. If Buyer fails to respond wiin time stated Pmake inm )(1)(b) or fails to terminate is Agreement by written notice to Seller er wiin at time, Buyer y and agree to RELEASE in Paragraph 28 of is Agreement, and Buyer accepts r repairs/improvements according to terms of notice pro rovided by municipality. 2. If Seller denies Buyer permission to required repairs/improvements, or does not provide Buyer access before Settlemen ent Date to make required repairs/improvements, Buyer may, wiin 5 DAYS, terminate is Agreement by writ- to terms of Paragraph 26 of is Agreement. Moperty MPr MPwi ds ten notice to Seller, wi all deposit monies returned according 3. If rep airs/improv ements ar e r qu an smlmimamfmfa irs/ i Mperform M15(B) AMe Sell e a copy of notice to Buyer as required in is Paragraph, Seller will perfo orm all repa mp Mde Mi Mv Mr MoMtMr MBuyer S d by he notice at Seller s expense. Paragraph 15(B)(3) will survive settlement. 16. COND NDOMINIUM/PLANNED (HOMEOWNER ASSOCIATIONS) RESALE NOTICE (1-10) (A) Property is NOT a Condominium of Community unless c hecked below. CONDOMIN m att is prima Uni fo rm requires Seller to furnis condomini um raeahata plans), bylaws and PLANNED (HOMEOWNE ASSOCIATION). The Pr AopArAP Au Ad Uniform Community 5407(a) of Act requires (or and plans), bylaw rules and regulations of set in 5407(a) of I SPL SGSWSASAP San Sm SAqu SArAeAe SAh IU d arily run by a unit owners association. Section 3407 of SAs on AaAan Aia Al Asy AnAn AfAoAtAcAu Acondominium Af Ao At AsAiAyAtAty Apart Ave Ar SNSISLSO Sfor SAhAtA SAan SAi a sh Buyer wi a Certificate of Resale and copies of rules and regulations of association. NER roperty is part of a planned community as defined by Section es Seller to furnish Buyer wi a copy of declaration aws, association, and a Certificate containing provisions Act. (B) THE F L TO PROPERTIES THAT TARE PART OFACONDOMINIUM ORAPLAN NNED COMMUNITY: 1. Wiin 15SPSPSASAP from Execution Date of is Agreement, Seller, at Seller s expense, will request from association a Certificate of Resale and any or documents necessary to enable Sel ller to comply wi relevant Act. The Act provides at association Sn SAPlanned SGSNSISWSOSLSYS SDASAYS SES SI SOWSLSO is required to provide se documents wiin 10 da ays of Seller s request. 2. Seller will promptly deliver to Buyer all documents received from association. Under Act, Seller is not liable to Buyer for failure of association to provide Certificate in a timely ma anner or for any incorrect information provided by association in Certificate. 3. The Act provides at Buyer may declare is Agreement VOID at any time before Buyer receives association documents and for 5 days after receipt, OR until settlement, whichever occurs first. Buyer s notice to Seller must be in writing; upon Buyer declaring is Agreement void, all deposit monies will be returned to Buyer according to terms of Paragraph 26 of is Agreement t. iplete(etes E SAoA(A SecSA SAnSA arsa dosa atsa M.SA SATSA SAMP misa ApA AAmA eaquam iram ta edam aam ndam MPL,MP PLmLrLeLlLlLeLSL PLE nptp opppl arpl rapl unpl gpl icpl IL LE2LE LsLiL LALhLtLhL LfL mle dlyllltlplml elrltlil unle icle nole iple cale alle sele grle dle aple EDE teneeeme meseiehlewe EeEeErEgEAEhEtE EhE1EnEaEan EbEtEnEtEeEmEeEeEh Lat Lfi LcLaLrLoL/LdLd/ Pi Mmake MtoMesponsibility Maccept MParagraph M SOWSLS SSectionS SACOMMUNITYA SplatsS SCoS PlannedSA larsanta AmeA AAct.A AorAunA MwillMMtoMSellerMP ssionp 28L ofllil toe 505 Buyer Initials: / ASR Page 9 of 13 S eller Initials: / 40 Pennsylvania Association of realtors 2015

43 Pw If association has right to buy Property (right of first refusal), and association exercises at right, Seller will reimburse Buyer for any costs incurred by Buyer for any inspections or certifications obtained according to terms of Agreement, and any costs incurred by Buyer for: (1) Title search, title insurance and/or mechanics lien insurance, or any fee for cancellation; (2) Flood insurance, fire insurance, hazard insurance, mine subsidence insurance, or any fee for cancellation; (3) Appraisal fees and charges paid in advance to mortgage lender. 17. TITLES, SURVEYS AND COSTS (4-14) (A) The Property will be conveyed wi good and marketable title at is insurable by a reputable title insurance company at regular rates, free and clear of all liens, encumbrances, and easements, excepting however following: existing deed restrictions; his- toric preservation restrictions or ordinances; building restrictions; ordinances; nces; easements of roads; easements visible upon ground; easements of record; and privileges or rights of public service com mpanies, if any. (B) Buyer is encouraged to obtain an owner s title insurance policy to protect Bu a lender s title insurance policy, which will not protect Buyer from claims an come in standard and enhanced versions; Buyer should consult wi a title in release and discharge any and all claims and losses against Broker for Buyer ance policy. (C) Buyer will pay for following: (1) Title search, title insurance and/or or (2) Flood insurance, fire insurance, hazard insurance, mine subsidence insu anye E uyer. An owner s title insurance policy is different ferent from nd attacks on title. Owner s title tle insurance policies nsurance agent about Buyer s options. Buyer agrees to should Buyer neglect to obtain an ner s title insurmechanics L lien insurance, ncellation; urance, or any fee for cancellation; isal fees and charges paid in advance to mortgage lender; (4) Buyer s customary sett tlement costs and accruals. (D) Seller has right, upon request, to receive a free copy of any title abstr ract fo or Property fr om o i a p red. (E) Any survey or surveys required by title insurance company or he abstracting company for preparing adequate descrip- tion of Property (or correction reof) will be obtained and paid for by Seller. Any survey or desired Buyer or required by mortgage lender will be obtained and paid for by Buyer. (F) In event of a change in Seller s financial status affecting fect Seller s abi ility to convey Ew Em EyEt EtyEe EAppra EB Eby Eprepar Es EfEhEwErEoEfEo E(3) Ecanc Efor Eowne on or before Settlement Date, or any extension reof, Seller shall promptly notify Buye er in writing. changel status tus includes, but is not limited to, Seller filing bankruptcy; filing of a foreclosure lawsuit against of y judgment against Seller; notice of public tax sale affecting fecting Proper perty; and Seller learning hat sale Property is no longer sufficientficient to satisfy all liens and encumbrances against Property. (G) If Seller is unable to give good and marketable title at is ins ur ab le by able tit y he r tes, as Lentry Lin L Lpany Lm Lo Lc La Lto at regular rat specified in Paragraph 17(A), Buyer may te rm in at e is Agreemen t b notice to Seller, wi all deposit monies returned to Buyer according to terms of Paragrap ph 26 of is MPn MPo Agreeme nt. Up opn, Seller will reimbur rse Buyer for any costs incurred ti tp of is Agreement t, and for ose items specified in or lea eased, and Sellers make no representation ismpcp ntṗconveyed PrmPrmPit Pwr Pe Py ched to and made part of is Agreement. TITLE TO THE COAL AND RIGHTS OF SUPPORT UNDERNEATH OWNERS OF SUCH COAL MAY HAVE THE COMPLETE LEGAL RESULT TO THE SURFACE OF THE LAND AND ANY HOUSE, in manner provided in Section 1 of Act of July right of protection against subsidence resulting from notsawhichaam M by Buyer for any inspections or cert if fi cations obta h 17( D). may have been previously unless elsewhere in Agreemen Addendum Applicable) A CONVEY, TRANSFER OR REFERRED SAMT SUCH DAMAGE STRUCTURE SUCH LAND Buyer acknowledges maymhe and at property described owners of interests MCONNECTION MAND M,MHEREINMT MINCLUDE Mis MOGM) MP ined accordi Paragraph 17(B) items (1), (2), (3 ) an d in P ar agr ap (H) Oil, gas, mineral, or or rights of is Property about status of ose right ghts indicated Oil, Gas and Mineral Rights (PAR Form (I) COAL NOTICE (Where THIS DOCUMENT MAY NOT SELL, THE SURFACE LAND DESCRIBED OR OWNER OR RIGHT TO REMOVE ALL COAL AND IN BUILDING OR OTHER ON for 17, 1957, P.L. 984.) at obtaining coal mining operations, may be protected from damage due to mine subsidence by a private cont ntract wi 14 Mine deed Seller Property is not recreational 1. This property subject aato Private Addendum ABituminous A Aof AMTHA AMAT os Mherein Mset Mnotice MMAY MTHE MINSURE S coal. This acknowledgement is made for purpose of complying wi provisions of Section Subsidence and Lan nd Conservation Act of April 27, Buyer agrees to sign from will aforesaid provision. (J) The a as in Pennsylvania Construction Code Act unless orwise stated here: (K) sfer Fee Obligation unless ot rwise stated here: AR Form PTF) is attached to and made part of is Agreement. A(PAPAR ATransf Adefined 2. Notice s tar Fees: In Pennsylvania, Private Transfer Oblig fsi 11; 68 Pa.C.S. 8101, et. seq.), which defines a Pr er ope, or payable for right to make or accept SoSrStSoSt S0 S2 Sat Sga Se Sis e Fees are defined and regulated in Private Transfer Fee rivate Transfer Fee as a fee at is payable upon trans- fe he transfer, if obligation to pay fee or charge runs wi o orw wise binds subsequent owners of property, regardless of wher fee or charge is a fixed amount or is determ p a of value of property, purchase price or or consideration given for transfer. A Private Transfer Fee must be properly recorded to be binding, and sellers must disclo ose existenc ce of fees to prospective buyers. Where a Priv vate Transfe Srw SpSeShSSeSl Sy, SnSiStSsSeSrSeSr StSnSntSiSnSa SanSf S1 SfAfe Sv SAcontain SaSsSaSdSeSnSi SinSmSt Sty Sp SoSrSpSeShSt SSoSt Stage Snt Sc Srt SeSl Sit er Fee is not properly recorded or disclosed, Act giv ves certai in right ts and protections to buyers. 18. MAINTENANCE AND RISK OF LOSS (1-14) (A) Seller will maintain Property (including, but not limited to, structures, grounds, fixtures, appliances, and personal property) specifically listed in is Agreement in its present condition, normal wear an nd tear excepted. (B) If any part of Property included in sale fails before settlement, Selle er will: 1. Repair or replace at part of Property before settlement, OR 2. Provide prompt written notice to Buyer of Seller s decision to: a. Credit Buyer at settlement for fair market value of failed part of Property, as acceptable to mortgage lender, if any, OR INAMM PSA OR Sg Esurveys Ean ErErtEaEarEp Elegal Eh L LProperty; Lfinancial Lmonetary LA Ltitle Ptt PiPtPaPat M, M(This Mattached erms SalS TransferS SinS SrdS StoS FeeSA TransAeconomicA APrivateA Acabin A AdeedA MbeMnotM PenP lel inloflpricellulslnlalanl MPo SRS SeS csas(stscsasnsos isa A MPgMP MṀ MOM MPaPL mprpeptpepnmpspmp apnpip tprepl pupl tpl rl E feee E 570 Buyer Initials: / ASR Page 10 of 13 S eller Initials: / Pennsylvania Association of realtors

44 b. Not repair or replace failed part of Property, and not credit Buyer at settlement for fair market value of failed part of Property. 3. If Seller does not repair or replace failed part of Property or agree to credit Buyer for its fair market value, or if Seller fails to notify Buyer of Seller s choice, Buyer will notify Seller in writing wiin 5 DAYS or before Settlement Date, whichever is earlier, at Buyer will: a. Accept Property and agree to RELEASE in Paragraph 28 of is Agreement, OR b. Terminate is Agreement by written notice to Seller, wi all deposit monies returned to Buyer ac ccording to terms of Paragraph 26 of is Agreement. If Buyer fails to respond wiin time stated in Paragraph 18(B)(3) or fails to terminate is Agree ement by written notice to Seller wiin at time, Buyer will accept Property and agree to ale RELEASE in Paragraph tee 28 of is Agreement. (C) Seller bears risk of loss from fire or or casualties until settlement. If any property incl cluded in is sa ale is destroyed and not replaced prior to settlement, Buyer will: 1. Accept he Property in its n cur rrent condit tion toger wi he proceeds of any ins ur an ce recove ry obt ai n ab le by Seller, OR 2. Terminate is Agreement by written notice to Seller, wi all deposit monies returned to Buyer acc cording terms of Paragraph 26 of is Agreement. 19. HOME WARRANTIES (1-10) L At or before settlement, eir party may purchase a home warranty for Prope perty from a ird-party vendor and er under- stand at a home warranty for Property does not alter any disclosure requirements of Seller, will or any pre- existing defects of Property, and will not alter, waive or extend any provisions of is Agreement regarding or certifications at Buyer has elected or waived as part of is Agreement. Buye yer and Seller understand at wh hoea s home warranty may have a business relationship wi home warranty company at provides a financial benefit broker 20. RECORDING (9-05) This Agreement will not be recorded in Office fice of Record order of Deeds or in any or fficelolor EB Ewarrant ESelle E. Ea Ever Eto Ey public record. If Buyer causes or permits is Agreement to be recorded, Seller may elect to treat such act as is Agreement. 21. ASSIGNMENT (1-10) This Agreement is binding upon parties, ir heirs, personal representatives, guardians successors, to extent assignable, on assigns of parties hereto. Buyer will not transfer or assign is Agreement wiout written conse ent of Seller unless o- erwise stated in is Agreement. Assignment of is Agreement may result additional transfer taxes. Ldefault LEbroker Lof Lffice M 22. GOVERNING LAW, VENUE AND PERSONAL JURISDICTION (9-05) (A) The validity and construction of is Agreement, and rights and duties parties, will be governed in accordance wi laws of Commonweal of Pennsylvania. (B) The parties agree at any dispute, co nt tr oversy or cla MPi MPr MPo im ar isi ng opcpn npnpnpr tion wi is Agreement or its performance by eir party submitted to a court shall be fi led exc lu sively by an d at e o rpepdpepfpfe courts sitting in Commonweal of Pennsylvania. 23. FOREIGN INVESTMENT IN REAL PROPERTY TAX 1980 TA) (4-14) The disposition of a U.S. real property interest by a foreign Pr r) is subject to Foreign Inve estment in Real Property Tax Act of 1980 (FIRPTA) income s on dispositions of U.S. nsfers, etc. Persons pur- ent officers ficers are required to ensure U.S. taxation he transferee/buyer you nd you fail to wihold, 9791 et seq.) providing contact municipal near a particular prop- Aon (1-10)SAA tax wiholding. FIRPT Unit ed Stat ates to tax foreign persons real property interests. This includes but is not limited or exchange, liq quida dation, redemption, gift, tran chasing U.S. real prop perty interests (transferee) persons, pu urchasers' agents, and settlement to wihold 10 perce cent of amount realized foreign corporations). orations). Wiholding is intended of gains realized on disposition of such interests. The is wiholding agent. If you are must find out if transferor is a foreign person defined. If tr ransferor is a foreign person an you may be held liable for tax. 24. NOTICE REGARDING CONVICTED Msale MAct. M Mby Mas Mtransferee/Buyer MTA S (ME MEGAN'S LAW) (4-14) The Pennsylvania General Assembly passed (often referred to as Megan s Law, 42 Pa.C.S. for co ommunity notification presence convicted sex offenders. fenders. Buyers are encouraged to polic e department or Police for information relating t o presence of sex offenders fenders erty, or to check information State Police Web site at REPRESENTA ATIONS (A) All representations, claims, prom motional activities, brochures or plans of any kind made by Seller, Brokers, ir A ASEX APennsylvania l icensees, fficers ficers or s are not a part of is Agreem ment unless expressly incorporated orated or stated in is Agreement. ThisScontains whole agreement between Seller and Buyer, and re are no or terms, obligations, cove venants, statement nts or conditions, oral or orwise, of any kind whatsoever conc cerning is sale. This Agreem ement ame mended, changed or modified except in wr riting executed by parties. (B) Unless orwisesaltered, is Agreement, Buyer has inspected Pro operty (including fixtures and any personal property specifically listed herein) before signing is Agreement or has waived right to do so, and agrees to purchase Property IN ITS PRESENT Sbe Srepresentations, SAgreement STIONS SPennsylvania SAlegislation SAOFFENDERS SAcertain SAofAof CONDITION, subject to inspection contingencies elected in is Agreement. Bu uyer acknowledges at Brokers, ir licensees, employees, officers ficers or partners have not made an in ndependent examination or det termination of struc- tural soundness of Property, age or condition of components, env vironmental conditions, perm mitted uses, nor of con- ditions existing in locale where Property is situated; nor have y ma ade a mechanical inspection of any of systems con- tained rein. (C) Any repairs required by is Agreement will be completed in a workmanlike ke manner. (D) Broker(s) have provided or may provide services to assist unrepresented pa arties in complying wi is Agreement. 26. DEFAULT T, TERMINATION TION AND RETURN OF DEPOSITS (4-14) (A) Where Buyer terminates is Agreement pursuant to any right granted by his Agreement, Buyer will be entitled to a return of all L OFMP M ACT SAMP ofsa MPLE MPeMP MaM inmp hemp smp ump tmp ndmp amp lp cpepnp LE.E Enot EEtoErecommends Einspections Land Lplace Land MforM(special Mforeign Mfrom M Mauorized Mtransferor) M( Mperson Mrules Mcertain MA SnotSwillS SstatedSemployees,SA advertising,a AhasAAStateA partnersa MtoMPofP (FIRPRPTPaPrP inpllloflengeebuyere cove 635 Buyer Initials: / ASR Page 11 of 13 Seller Initials: / / 42 Pennsylvania Association of realtors 2015

45 deposit monies paid on account of Purchase Price pursuant to terms of Paragraph 26(B), and is Ag greement will be VOID. Termination of is Agreement may occur for or reasons giving rise to claims by Buyer and/or Seller fo or deposit monies. (B) Regardless of apparent entitlement to deposit monies, Pennsylvania law does not allow a Broker holding deposit monies to determine who is entitled to deposit monies when settlement does not occur. Broker can only releasee deposit monies: 1. If is Agreement is terminated prior to settlement and re is no dispute over entitlement to deposit monies. A written agreement signed by bo parties is evidence att re is no dispute regarding deposit monies. 2. If, after Broker has received deposit monies, Broker receives a written agreement at is signed by Buyer and Seller, directing Broker how to distribute some or all of deposit monies. 3. According to terms of a final order of court. 4. According to terms of a prior written agreement between Buyer and ofle Seller at directs Broke E er how to distribute deposit monies if re is a dispute between parties att is not resolved. (See Para g r ap h 26( C) ) (C) Buyer and Seller agree at if re is a dispute over entitlementt to deposit monies t ha t is u nr esolved days (180 if not specified) after Settlementt Date stated in Paragraph 4(A), or any written extension s ereo f, e Broker hol deposit monies will, wiin 30 days of receipt of Buyer s written request, distribute deposi t monies to Buyer un is in receipt of verifiable written notice att dispute is subject of litigation or mediat tion. If Broker has re c fi written notice of litigation prior to receipt of Buyer s request for distribution, Broker will contin ue to hold until receipt of a written distribution agreement between Buyer and Seller or a final court order. Buyer an d initiate litigation for any portion of deposit monies prior to any distribution made by Broker pursu ant to geaereaear Seller agree at distribution of deposit monies based upon passage of time does not legally t deposit ation regarding deposit ErmEeEt EpEsEi Eh ElElEeES Ey Eu Ed Ee End Ed Enies Em Eo Ep Eable Eiab Ef Er Ee Ev EBroker Eh Et Es Elding L n o n monies, and att parties maintain ir legal rights to pursue litigi ation e ven a ft er a dis tr i LEa LEm b ut (D) Buyer and Seller agree at a Broker who holds or distributes deposit monies pursuant to terms sylvania law will not be liable. Buyer and Seller agree at if any Broker or affiliated filiated licensee named in monies, attorneys fees and costs of Broker(s) and licensee(s) will b e paid by m in litigation. (E) Seller has option of retaining all sums paid by Buyer, including deposit monies, Buyer: 1. Fail to make any additional payments as specifi ified in Paragraph 2, OR 2. Furnish false or incomplete information to Seller, Broker(s), or any or party identified is Agreem ment concerning Buyer s legal or financial inam status, OR Lnaming Lparty M 3. Violate or fail to fulfill and perform an ny or terms or conditions i (F) Unless orwise checked in Paragrap aph 26(G), Seller may elect retain ose sums paid by Buyer, inc cluding deposit monies: 1. On account of purchase price, OR 2. As monies to be applied to Seller s damages, OR 3. As liquidated damages for such default. (G) SELLER IS LIMITED TO RETAINING SUMS PAID BUYER, NCLUDING DEPOSIT MONI IES, AS LIQUIDATED DAMAGES. (H) orsa If Seller retains all sums paid Buyer, including monies, raph 26(F) or (G), Buyer liability or and responsible for deposits. submit all disputes claims at over deposit monies, will be conducted accordance s/home Buyers Dispute it is available, case ms of mediation sys- local of MAgreeme Mas chedule, will be divided will ncluded before any party dispute proceedingsa may initiate legal is necessary to stop any of limitations be binding. Any agree- to mediate claims arisinga A by ted dam amages pursuant to Paragraph and Seller are release sed from furr ent is VOID. (I) Brokers and licens nsees are not 27. MEDIATION (1-10) 10 Buyer and Seller er will or reemen nt, including disputes and claims to mediation. Mediation Rules and P rocedures of Home Sellers Resolution System, unless not which and Seller wil ll mediate according to term tem offered fer or endorsed by M Mis S. Medi diation fees, co ontained in mediator s fee sc equall lly among parties and before conference. This mediation process must be con to om, wi exception of filing a summons if it statut te from reached rough mediation and signed by parties will ment is greement will survive sett ttlement. 28. REL EASE ( 9-05) Buy er releases, q d fo SELLER, ALL BROKERS, ir LICENSEES, EMPLOYEES and any OFFI- ARealtors AAssociation Ages Ar Ah AAgr Aany Ain Abe CE R or PA RT o And any or PERSON, FIRM or be liable by or rough from isnsa losses or demands, including, but not limited damage and all of consequ kn n or not, which may arise from presence ing insects, radon, lead- g sewage disposal system be in default under uyer of any right to pur- Sk Sr S, SR SE Sexpiring. SAmediation em a CORPORATION who may m, to, personal injury and property ue e of termites or or wood-bori based paint indoor o air quality, environmental hazards, any defects in individual on-lot or deficienc ies service system, or any defects or conditions on Property. Should Seller terms of is Agreement in violation of any Seller disclosure law or regulation, is release does not deprive Bu sue any remedies at SmSsSzSa Snown ShSwS,SfSf,SoSeSrSeShSt SSs Sc Sy Sdisputes SAagreement SAcourtroom, S-SnSoSeShSsi StSnSiSu Sfu SdSlSoSmS,SsS, Sater Sw Ss Sor Si Sng Sun SzSa Sh may be available under law or equity. This release will survive settlement. 29. REAL ESTAT TE RECOVERY FUND (9-05) A Real Estate Recovery Fund exists to reimburse any persons who have obtained a final civil judgment agai inst a Pennsylvania real estate licensee (or a licensee s affiliates) filiates) owing to fraud, misrepresentation, or deceit in a real estate transaction and who have been unable to collect judgment after exhausting all legal and equitable remedies. For complete details about he Fund, call (717) or (800) (wiin Pennsylvania) and (717) (outside Pennsylvania). 30. COMMUNICATIONS WITH BUYER AND/OR SELLER (1-10) (A) If Buyer is obtaining mortgage financing, Buyer shall promptly deliver to Broker for Buyer, if any, a copy of all Loan Estimate(s) and Closing Disclosure(s) upon receipt. LĖeEd BYMP AID SdSlSoSdSrSaS SNS SAMPL SdSrSaS lslsasdsnsasys ts cs mssa ansa fa ta ha AsAiAdA raeavaea inam M PLE rpl LEisLE isle tile onle EeEnEiE EiEtEnEeEeE E le ae E26 EPenn Ean Edv Ear Efi E Lshould LParagr L PLlitig PAgreement. Munpaid Mobligation Mliquidated Mdeposit MPto MfromMarise SheS SaiS SclS SuitS SlaS SanS SofS SS ofa orapaidaafroma AAnyAMwiMMBuyerM PofP isp LinLEE EemE EheE EveE EeiE EorE EreE EerE EdeE EraphE ErEgEpEaEaphE.E 700 Buyer Initials: / ASR Page 12 of 13 Seller Initials: / Pennsylvania Association of realtors

46 (B) Wherever is Agreement contains a provision at requires or allows communication/delivery to a Buyer, att provision shall be satisfied by communication/delivery to Broker for Buyer, if any, except for documents required to be delivered pursuant to Paragraph 16. If re is no Broker for Buyer, ose provisions may be satisfied only by communication/ /delivery being made directly to Buyer, unless orwise agreed to by parties. Wherever is Agreement contains a provision at requires or allows communication/ /delivery to a Seller, at provision shall be satisfied by communication/delivery to Broker for Seller, if any. If re is no Broker for Seller, ose provisions may be satisfied only by communication/delivery being made directly to Seller, unless orwise agreed to by parties. 31. HEADINGS (4-14) The section and paragraph headings in is Agreement are for convenience only and are not intended to indicate all of matter in sections which follow m. They shall have no effect fect whatsoever in determining ng rights, obligations or intent of parties. 32. SPECIAL CLAUSES (1-10) (A) The following are attached to and made part of is Agreement if checked: Sale & Settlement of Or Property Contingency Addendum (PAR For rm SSP) Sale & Settlement of Or Property Contingency wi Right to Continu ue Marke keting Addendum (PAR Form SSPCM) Sale & Settlement of Or Property Contingency wi Timed Kickout Adden endum (PAR Form SSPTKO) Settlement of Or Property Contingency Addendum (PAR Form SOP) Appraisal Contingency Addendum (PAR Form ACA) Short Sale Addendum (PAR Form SHS) (B) Additional Terms: ESS ofamm Buyer and Seller acknowledge receipt of a copy of is Agreement at time This Agreement may be executed in one or more counterpartsmpsigpof, each which be deemed to be an original and which counterparts toger shall constitute one and same Agreement of Parties. NOTICE TO PARTIES: WHEN SIGNED, THIS AGREEMENT BINDING CONTRACT. Parties to is transaction are advised to consult a Pennsylvania real estat tate attorney before signing ym advice. electronic ectr transmission, bearing signatures of all Real Estate Commission at 49 Pa. Code before signing is Agreement. les when Broker for Seller is holding deposit money) Lead-Based hich is attached to is Agreement of Sale. Buyer has SA received pamphlet ProtectA A Return of is Agreement, and any addenda and amendments, including by parties, constitutes accepta ptance by parties. / Buy uyer has received Consumer Notice State / Buyer has received a statement Buyer estimated clos osing costs Mif MSt Meturn Mr / Buyer has received Money (for cooperative sal before signing Agreement. / Buyer has received Hazards Disclosure, wh Fami mily from Lead in Your Hom me (for properties built prior to 1978). Ais ANotice ADeposit A Aour AYour APaint BUYER DATE Pgning. MsM Mlegal Mdesire MPof MbyMadopted S MasMshaP allp M P GP L E BUYER IS AMP DATE BUYER DATE Seller has received Consumer Notice as adopted by State Real Estate Comm mission at 49 Pa. Code Seller has received a statement of Seller s estimated closing costs before signing i is Agreement. SELLER DATE SELLER SELLER ASR Page 13 of 13 DATE DATE 44 Pennsylvania Association of realtors 2015

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48 Contact: PA Association of realtors 500 nor 12 street lemoyne, PA toll free fax parealtor.org PA Association of realtors