The Arkansas Real Estate Contract Residential form is a legally binding document used to outline the terms and conditions between parties involved in the sale and purchase of residential property within the state of Arkansas. It covers crucial details such as the purchase price, property description, and conditions of the sale, ensuring a clear understanding and agreement between the buyer and seller. For those ready to take the next step in their home buying or selling journey, click the button below to fill out the form.
In the world of real estate transactions within Arkansas, the Arkansas Real Estate Contract Residential form plays a pivotal role, serving as a legally binding document that outlines the terms and conditions agreed upon by buyers and sellers. This form encapsulates crucial elements such as the property's purchase price, the identity of the parties involved, descriptions of the property, financing details, closing and possession dates, along with stipulations regarding inspections and any contingencies relating to financing or property condition. Further, it includes specific clauses about default and remedies, thereby setting clear expectations and protections for both parties. By providing a structured and standardized approach to real estate transactions, this form not only ensures compliance with state laws but also facilitates a smoother negotiation process, ultimately paving the way for a transparent and efficient property transfer. Its comprehensive nature means that individuals embarking on the purchase or sale of a residential property in Arkansas are well-advised to familiarize themselves with the form's contents, as it is instrumental in safeguarding their interests and ensuring a legally sound agreement.
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Real Estate Contract (Residential)
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FORM SERIAL NUMBER: 049889-700165-6092356
1. PARTIES:
Brian Glenn
Ashley Nicole Glenn
Copyright
2022
Arkansas
REALTORS® Association
(individually or collectively, the "Buyer") offers to purchase, subject to the terms and conditions set forth herein, from the undersigned (individually or collectively, the "Seller"), the real property described in Paragraph 2 of this Real Estate Contract (the "Property"):
2.This Property is
✖Single family detached home with land
Manufactured / Mobile Home with land Builder Owned older than 1 year
(Seller to provide FTC Insulation Requirement Addendum)
One-to-four attached dwelling with land Condominium / Town Home
(See Condominium/Town Home Addendum attached)
ADDRESS AND LEGAL DESCRIPTION:
4800 Parker Lane Texarkana, AR 71854
4800 Parker Lane Texarkana, AR
See Survey Attached
_________________________________________________________________________________
3.PURCHASE PRICE: Subject to the following conditions, Buyer shall pay the following to Seller and, if so stated in Paragraph 3B assume the following obligations of Seller for the Property (the "Purchase Price"):
✖A. PURCHASE PURSUANT TO NEW FINANCING: Subject to Buyer's ability to obtain financing on the terms and
conditions set forth herein and the Property appraising for not less than the Purchase Price, the Purchase Price
shall be the exact sum of ………….………………………………….......…......................................... $
985,000.00
Down payment, loan amount, interest rate and other terms of financing to be negotiated between Buyer and creditor.
Loan type will be:
CONVENTIONAL.
VA. (Continues on Page 2 for "VA NOTICE TO BUYER")
FHA. (Continues on Page 2, for "FHA NOTICE TO BUYER")
USDA-RD.
Direct
Lender
✖
OTHER FINANCING: Subject to Buyer's ability to obtain financing (other than stated above) as follows:
Buyer to pay $575,000.00 cash at closing. Owner Finance the remaining $410,000.00 with a 5 year balloon -30 year amortization.
No Prepayment Penalty will apply.
__________________________________________________________________________________________
_________________________________________________________________________________________
B. PURCHASE PURSUANT TO LOAN ASSUMPTION (See Loan Assumption Addendum attached)
C. PURCHASE PURSUANT TO CASH: Cash at Closing in the exact sum of
$ _________________
Serial#: 049889-700165-6092356
Prepared by: Natasha Crabbe | Better Homes & Gardens Infinit | natasha@sellingtexarkana.com |
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3. PURCHASE PRICE: (continued from Page 1)
IF LOAN TYPE IS VA, I ACKNOWLEDGE THE FOLLOWING "VA NOTICE TO BUYER:" It is expressly agreed, notwithstanding any other provisions of this Real Estate Contract, Buyer shall not incur any penalty by forfeiture of Earnest Money or otherwise be obligated to complete this purchase of the Property described herein, if the Real Estate Contract Purchase Price or cost exceeds the reasonable value of the Property established by the Department of Veterans Affairs. Buyer shall, however, have the privilege and option of consummating this Real Estate Contract without regard to the amount of the reasonable value of the Property established by the Department of Veterans Affairs. If Buyer elects to complete the purchase at an amount in excess of the reasonable value established by the Department of Veterans Affairs, Buyer shall pay such excess amount in cash from a source which Buyer agrees to disclose to the Department of Veterans Affairs and which Buyer represents will not be from borrowed funds. If Department of Veteran's Affairs reasonable value of the Property is less than the Purchase Price, Seller may reduce the Purchase Price to an amount equal to the Department of Veterans Affairs reasonable value and the parties to the sale shall close at such lower Purchase Price with appropriate adjustments to Paragraph 3 above.
IF LOAN TYPE IS FHA, I ACKNOWLEDGE THE FOLLOWING "FHA NOTICE TO BUYER:" It is expressly agreed, notwithstanding any other provisions of this Real Estate Contract, Buyer shall not be obligated to complete the purchase of the Property described herein or to incur any penalty by forfeiture of Earnest Money Deposits or otherwise unless Buyer has been given, in accordance with HUD/FHA or VA requirements, a written statement by the Federal Housing Commissioner, Department of Veterans Affairs, or a Direct Endorsement lender setting forth the appraised value of the Property of not less than $_______________. Buyer shall have the
privilege and option of consummating this Real Estate Contract without regard to the amount of the appraised valuation. The appraised valuation is arrived at to determine the maximum mortgage the Department of Housing and Urban Development will insure. HUD does not warrant the value nor the condition of the Property. Buyer should satisfy himself/herself that the price and condition of the Property are acceptable.
We hereby certify the terms and conditions of this Real Estate Contract are true to the best of our knowledge and belief and any other agreement entered into by any of the parties in connection with this real estate transaction is part of, or attached to, this Real Estate Contract.
Buyer has received HUD/FHA's Form No. HUD-92564-CN, "For Your Protection: Get a Home Inspection."
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4. AGENCY: (check all that apply)
A. LISTING FIRM AND SELLING FIRM REPRESENT SELLER: Buyer acknowledges Listing Firm and Selling Firm and all licensees associated with those entities are the agents of Seller and it is Seller who employed them, whom they represent, and to whom they are responsible. Buyer acknowledges that before eliciting or receiving confidential information from Buyer, Selling Firm, which may be the same as Listing Firm, verbally disclosed that Selling Firm represents Seller.
B. LISTING FIRM REPRESENTS SELLER AND SELLING FIRM REPRESENTS BUYER: Buyer and Seller acknowledge Listing Firm is employed by Seller and Selling Firm is employed by Buyer. All licensees associated with Listing Firm are employed by, represent, and are responsible to Seller. All licensees associated with Selling Firm are employed by, represent, and are responsible to Buyer. Buyer acknowledges Selling Firm verbally disclosed Listing Firm represents Seller. Seller acknowledges Listing Firm verbally disclosed Selling Firm represents Buyer.
C. LISTING FIRM AND SELLING FIRM ARE THE SAME AND REPRESENT BOTH BUYER AND SELLER: Seller and Buyer hereby acknowledge and agree Listing and Selling Firm are the same and all licensees associated with Listing and Selling Firm are representing both Buyer and Seller in the purchase and sale of the above referenced Property and Listing/Selling Firm has been and is now the agent of both Seller and Buyer with respect to this transaction. Seller and Buyer have both consented to and hereby confirm their consent to agency representation of both parties. Further, Seller and Buyer agree:
(i)Listing/Selling Firm shall not be required to and shall not disclose to either Buyer or Seller any personal, financial or other confidential information concerning the other party without the express written consent of that party; however, Buyer and Seller agree Listing/Selling Firm shall disclose to Buyer information known to Listing/Selling Firm related to defects in the Property and such information shall not be deemed "confidential information." Confidential information shall include but not be limited to any price Seller is willing to accept that is less than the offering price or any price Buyer is willing to pay that is higher than that offered in writing.
(ii)by selecting this option 4C, Buyer and Seller acknowledge when Listing/Selling Firm represents both parties, a possible conflict of interest exists, and Seller and Buyer further agree to forfeit their individual right to receive the undivided loyalty of Listing/Selling Firm.
(iii)to waive any claim now or hereafter arising out of any conflicts of interest from Listing/Selling Firm representing both parties. Buyer and Seller acknowledge Listing/Selling Firm verbally disclosed Listing/Selling Firm represents both parties in this transaction, and Buyer and Seller have given their written consent to this representation before entering into this Real Estate Contract.
D. SELLING FIRM REPRESENTS BUYER (NO LISTING FIRM): Seller acknowledges Selling Firm and all licensees associated with Selling Firm are the agents of Buyer and it is Buyer who employed them, whom they represent, and to whom they are responsible. Seller acknowledges that at first contact, Selling Firm verbally disclosed that Selling Firm represents Buyer. Any reference to "Listing Firm" in this Real Estate Contract will be considered to mean Selling Firm, both Buyer and Seller acknowledging that all real estate agents (unless Seller is a licensed Real Estate Agent) involved in this Real Estate Contract only represent Buyer.
E. NON-REPRESENTATION: See attached Non-Representation Disclosure Addendum. If item E is checked it should be accompanied by a corresponding entry to Paragraph 35 B or C.
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5.LOAN AND CLOSING COSTS: Unless otherwise specified, all of Buyer's closing costs, including origination fees, assumption fees, loan costs, prepaid items, loan discount points, closing fee, and all other financing fees and costs charged by Buyer's creditor or any additional fees charged by Closing Agent(s), are to be paid solely by Buyer except for costs that cannot be paid by Buyer. If Buyer
is obtaining a VA or FHA loan, the "Government Loan Fees" shall be paid by Seller, up to the sum of $_________________0.00 (the "Seller Loan Cost Limit"), which is not included in any loan or closing cost provisions listed below. Notwithstanding any provision to
the contrary, should the Government Loan Fees exceed the Seller Loan Cost Limit, Seller shall have the option to either pay such excess amount or terminate this Real Estate Contract and have the Earnest Money returned to Buyer. Seller is to pay Seller's closing costs. N/A
____________________________________________________________________________________________________
__________________________________________________________________________________________________________
Should Buyer be entitled to a credit at Closing for repairs pursuant to Paragraph 16 of this Real Estate Contract, the amount of such credit shall be reflected on the settlement statement(s). Buyer and Seller warrant all funds received by Buyer from Seller (or other sources) will be disclosed to the Closing Agent(s) and reflected on the settlement statement(s).
6.APPLICATION FOR FINANCING: If applicable, Buyer agrees to make a complete application for new loan or for loan assumption within five (5) business days from the acceptance date of this Real Estate Contract. In order to make a complete application as required by this Paragraph 6, Buyer agrees to provide creditor with any requested information and pay for any credit report(s) and appraisal(s) required upon request. Unless otherwise specified, if said loan is not consummated or assumed, Buyer agrees to pay for loan costs incurred, including appraisal(s) and credit report(s), unless failure to consummate is solely the result of Seller's breach of this Real Estate Contract, in which case such expenses will be paid by Seller. Buyer understands failure to make a complete loan application as defined above may constitute a breach of this Real Estate Contract.
7.EARNEST MONEY:
A. Yes, see Earnest Money Addendum.
B. No.
8.NON-REFUNDABLE DEPOSIT: The Non-Refundable Deposit (hereinafter referred to as the “Deposit”) is funds tendered by Buyer to Seller to compensate Seller for liquidated damages that may be incurred by Seller resulting from Buyer failing to close on this Real Estate Contract. The liquidated damages shall include, but not be limited to, Seller’s time, efforts, expenses and potential loss of marketing due to Seller’s removal of Property from market. The Deposit is not refundable to Buyer unless failure to close is exclusively the fault of Seller or if Seller cannot deliver marketable title to the Property. The Deposit will be credited to Buyer at Closing. Buyer shall hold Listing Firm and Selling Firm harmless of any dispute regarding Deposit. Buyer expressly acknowledges The Deposit is not to be held by either Listing Firm or Selling Firm. The Deposit may be commingled with other monies of Seller, such sum not being held in an escrow, trust or similar account.
A. The Deposit is not applicable.
If Buyer is obtaining Government Financing (FHA, VA or other) Deposit is not applicable. B. Buyer will pay to Seller the Deposit in the amount of $_______________
i. Within ___________ days following the date this Real Estate Contract has been signed by Buyer and Seller; or
ii. Within three (3) business days following agreement to repairs on Inspection, Repair & Survey Addendum; or
iii. Other:___________________________________________________________________________
9.CONVEYANCE: Unless otherwise specified, conveyance of the Property shall be made to Buyer by general warranty deed, in fee simple absolute, except it shall be subject to recorded instruments and easements, if any, which do not materially affect the value of the Property. Unless expressly reserved herein, SUCH CONVEYANCE SHALL INCLUDE
ALL MINERAL RIGHTS OWNED BY SELLER CONCERNING AND LOCATED ON THE PROPERTY, IF ANY, UNLESS OTHERWISE SPECIFIED IN PARAGRAPH 30. IT IS THE RESPONSIBILITY OF THE BUYER TO INDEPENDENTLY VERIFY AND INVESTIGATE THE EXISTENCE OR NONEXISTENCE OF MINERAL RIGHTS AND ANY LEGAL RAMIFICATIONS THEREOF. Seller warrants and represents only signatures set forth below are required to transfer legal title to the Property. Seller also warrants and represents Seller has peaceable possession of the Property, including all improvements and fixtures thereon, and the legal authority and capacity to convey the Property by a good and sufficient general warranty deed free from any liens, leaseholds or other interests.
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10.TITLE REQUIREMENTS: As per RESPA AND CONSUMER FEDERAL PROTECTION BUREAU (CFPB) requirements, Buyer and Buyer's Lender have the right to determine where Buyer or Buyer's Lender will purchase title insurance and other settlement services.
Buyer and Seller understand Listing Firm and Selling Firm are not licensed title insurance agents as defined by Arkansas law and do not and cannot receive direct or indirect compensation from any Closing Agent regarding the closing process or the possible purchase of title insurance by one or more of Buyer and Seller. An enhanced version of title insurance coverage may be available to Buyer for this transaction. Discuss enhanced title insurance coverage with your title insurance provider to determine availability and features.
A.Seller shall furnish, at Seller's cost, an owner's policy of title insurance in the amount of the Purchase Price. If a loan is secured for the purchase of the Property, Buyer agrees to pay mortgagee's portion of title policy. If Buyer elects to obtain enhanced title insurance coverage, Buyer shall pay for the increase in title insurance cost in excess of the cost of a standard owner's title policy.
B.Buyer and Seller shall equally split the cost of a combination owner's and mortgagee's policy of title insurance, either standard or enhanced (if enhanced coverage is desired by Buyer and available), in the amount of (as to owner's) the Purchase Price and (as to mortgagee's) the loan amount (not to exceed the Purchase Price); however, if Buyer and Seller choose to close at different title companies, and/or if Buyer pays cash, subparagraph (A) above would control as to the allocation of title insurance costs. In the event the Loan Amount exceeds the Purchase Price, Buyer agrees to pay any additional title insurance premium in excess of Purchase Price.
C.Other:_____________________________________________________________________________________Seller & Buyer will split attorney fees. Closing will be held at Karlton Kemp
Buyer shall have the right to review and approve a commitment to provide title insurance prior to Closing. If objections are made to Title, Seller shall have a reasonable time to cure the objections. Regardless of the policy chosen, Buyer and Seller shall have the right to choose their Closing Agent(s).
11.SURVEY: Buyer has been given the opportunity to obtain a new certified survey. Should Buyer decline to obtain a survey as offered in Paragraph 11A of this Real Estate Contract, Buyer agrees to hold Seller, Listing Firm and Selling Firm involved in this Real Estate Contract harmless of any problems relative to any survey discrepancies that may exist or be discovered (or occur) after Closing.
A. A new survey satisfactory to Buyer, certified to Buyer within thirty (30) days prior to Closing by a registered land surveyor, showing all improvements, easements and any encroachments will be provided and paid for by:
Buyer Seller Equally split between Buyer and Seller.
B. No survey shall be provided.
C. Other:_______________________________________________________________________________________
Should Buyer agree to accept the most recent survey provided by Seller, this survey is for information purposes only and Buyer will not be entitled to the legal benefits of a survey certified in Buyer's name.
12.PRORATIONS: Taxes and special assessments due on or before Closing shall be paid by Seller. Any deposits on rental Property are to be transferred to Buyer at Closing. Insurance, general taxes, special assessments, rental payments and interest on any assumed loan shall be prorated as of Closing, unless otherwise specified herein. Buyer and Seller agree to prorate general ad valorem taxes based on the best information available at Closing. Buyer and Seller agree to hold any Closing Agent(s) selected by Buyer and Seller, Listing Firm and Selling Firm harmless for error in such tax proration computation caused by unknown facts or erroneous information (or uncertainty) regarding the Homestead Tax Exemption adopted by the voters of the State of Arkansas in the Year 2000, as amended from time to time.
13.FIXTURES AND ATTACHED EQUIPMENT: Unless specifically excluded herein all fixtures and attached equipment, if any, are
included in the Purchase Price. Such fixtures and attached equipment shall include but not be limited to the following: dishwasher, disposal, trash compactor, ranges, ovens, water heaters, exhaust fans, heating and air conditioning systems, plumbing and septic systems, electrical system, intercom system, ceiling fans, window air conditioners, carpeting, indoor and outdoor light fixtures, window and door coverings and related hardware, gas or electric grills, awnings, mail boxes, garage door openers and remote controls, antennas, fireplace inserts, __________________________________________________________________________________
_______________________________ and any items bolted, nailed, screwed, buried or otherwise attached to the Property in a permanent manner. Television satellite receiver dish, cable wiring, water softeners, and propane and butane tanks also remain, if owned by Seller. Buyer is aware the following items are not owned by Seller or do not convey with the Property: _______________
_________________________________________________________________________________________________________
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14. OTHER CONTINGENCY:
A. No Other Contingency. (Except for those conditions listed elsewhere in this Real Estate Contract.) It is understood and
agreed Seller has the right to enter into subordinate Real Estate Contracts and other Real Estate Contracts shall not
B.
affect this Real Estate Contract.
This Real Estate Contract is contingent upon:
The sale of buyers home located at 5604 Forestbend Lane Texarkana, AR &
115 Wildwood Drive Texarkana, TX . Zoning to be approved by Texarkana AR City
Board for the building of an additional single family home on a vacant one acre lo
on or before (month) September
(day) 21 , (year)
.
During the term of this Real Estate Contract (Select one):
(i) Binding with Escape Clause: Seller has the right to continue to show the Property and solicit and enter into another Real Estate Contract on this Property. However, all Real Estate Contracts shall be subject to termination of this Real Estate Contract. Should Seller elect to provide written notice of an additional Real Estate Contract being accepted by Seller, Seller shall utilize the "Seller's Contingency Notice Addendum" (the "Notice") and Buyer shall have _________ hours to remove this contingency. Buyer shall be deemed in receipt
of the Notice upon the earlier of (a) actual receipt of the Notice, or (b) five (5) business days after Seller or Listing Firm deposits the Notice in the United States mail, certified for delivery to Buyer at _________________
______________________________ with sufficient postage to ensure delivery. Removal of this contingency shall
occur only by delivery of Notice, in a manner ensuring actual receipt, to Seller or Listing Firm. Time is of the essence. In the event Buyer removes the contingency and does not perform on this Real Estate Contract for any reason concerning this contingency, Seller may assert all legal or equitable rights that may exist as a result of Buyer breaching this Real Estate Contract. Alternatively, Seller at his sole and exclusive option, may retain the Earnest Money, as liquidated damages. If this contingency is removed, a Closing date shall be agreed upon by the parties. If a Closing date is not agreed upon, Closing shall occur _________ calendar days from removal. Should Buyer
not remove this contingency as specified, this Real Estate Contract shall be terminated with Buyer and Seller both agreeing to sign a Termination of Contract Addendum with Buyer to recover Earnest Money. All time constraints in this Real Estate Contract referred to in Paragraphs 6, 16B, 17, 18 19B, 20B, and 21 refer to the time Buyer removes the contingency.
(ii)Binding without Escape Clause: It is understood and agreed Seller has the right to enter into subordinate Real Estate Contracts and any subordinate Real Estate Contracts entered into by Seller shall not affect this Real Estate Contract.
15.HOME-WARRANTY PLANS: Buyer has been given the opportunity to obtain a Home Warranty Plan. The Home Warranty contract covers unexpected mechanical failures due to wear and tear and is subject to a per-claim deductible and the specific terms of the Home Warranty Contract:
A. No Home Warranty provided.
B. A one-year limited Home Warranty Plan provided by ___________________________________________________
Company, ___________________________________________________________________________________
__________________plan paid for by ___________________________________________ at a cost not to exceed
$_______________ plus sales tax.
C. A one year limited Home Warranty Plan provided by a Home Warranty Company, and specific plan coverage selected by Buyer prior to closing. Plan paid for by ____________________________________________________________
______________________________________________ at a cost not to exceed $_______________ plus sales tax.
D. Other: ________________________________________________________________________________________
If a Home Warranty Plan is selected the contract will not imply any warranty by Seller after Closing. Coverages vary and the coverage received is solely set forth in the home-warranty documents between Buyer and Home Warranty Company, and no representation or explanation will be provided by Seller, Selling Firm or Listing Firm, Buyer being solely responsible to determine the extent and availability of coverage. Listing Firm and/or Selling Firm may receive compensation from the warranty company.
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16. INSPECTION AND REPAIRS:
A. Subject to Paragraph 25, the sale of the Property, in its condition as existing on the date Buyer signed this Real Estate Contract, shall take place on an "AS IS, WHERE IS, WITH ALL FAULTS BASIS" and Buyer acknowledges and agrees to voluntarily waive and decline any right to further inspect or require repair of the Property. An example are the rights declined and waived by Buyer in Paragraph 16B of this Real Estate Contract.
B. Buyer shall have the right, at Buyer's expense, with the cooperation of Seller, to inspect the electrical, mechanical, plumbing, environmental conditions, appliances, and all improvements, structure(s) and components on or about the Property (collectively the “Inspection Items”) within TEN (10) BUSINESS DAYS after the date this Real Estate Contract is accepted. Seller, Listing Firm and Selling Firm recommend Buyer use a representative(s) chosen by Buyer to inspect Inspection Items. Buyer is not relying on Listing Firm or Selling Firm to choose a representative to inspect or re-inspect Inspection Items; Buyer understands any representative desired by Buyer may inspect or re-inspect Inspection Items. Buyer shall neither make nor cause to be made, unless authorized by Seller in writing, any invasive or destructive Buyer inspections or investigations. Seller agrees to have all utilities connected and turned on to Property to allow Buyer to inspect and re-inspect Inspection Items. If Property being purchased is not new, Buyer acknowledges Inspection Items may not be new. Buyer does not expect Inspection Items to be like new and recognizes ordinary wear and tear to Inspection Items is normal. For the purpose of this Paragraph 16B, “normal working order” means that Inspection Items function for the purpose for which they are intended. The fact any or all Inspection Items may cease to be in normal working order, be discovered or occur, after Closing, shall not require repair by Seller, or provide legal or other liability to Seller, Listing Firm or Selling Firm.
If Buyer elected to inspect the Inspection Items, Buyer shall deliver an Inspection, Repair and Survey Addendum to Seller or Listing Firm within the allotted ten (10) business day period so the Inspection, Repair, and Survey Addendum is actually received by Seller or Listing Firm within the allotted (10) business day period, stating inspections have been performed and listing all items Buyer requests the Seller to repair or stating no repairs are requested. If Buyer is not satisfied with a personal or professional inspection and elects to terminate this Real Estate Contract, both Buyer and Seller agree to sign a Termination of Contract Addendum with Buyer to recover Earnest Money. If Buyer requests repairs, Seller shall have
(5)business days to respond to the Buyer’s repair request. If Seller does not respond within the allotted (5) business days, Buyer may elect to: (1) accept Property in its condition at Closing, or (2) terminate this Real Estate Contract and recover Earnest Money and both Buyer and Seller agree to sign a Termination of Contract Addendum.
If Buyer and Seller are not able to negotiate requested repairs, Buyer and Seller agree this Real Estate Contract is terminated and further agree to sign a Termination of Contract Addendum. IN THE EVENT BUYER DOES NOT MAKE
THE NECESSARY REQUIRED INSPECTIONS OR DOES NOT PRESENT THE INSPECTION, REPAIR AND SURVEY ADDENDUM TO SELLER OR LISTING FIRM IN THE ALLOTTED TEN (10) BUSINESS DAY TIME PERIOD, BUYER WAIVES ALL RIGHTS TO A RE-INSPECTION AND ASSUMES COMPLETE RESPONSIBILITY FOR ANY AND ALL FUTURE REPAIRS AND THE CONDITION OF THE PROPERTY.
If Buyer timely inspected Property and Seller received the Inspection, Repair and Survey Addendum within the time period set forth above, Buyer shall have the right to re-inspect all Inspection Items immediately prior to Closing to ascertain whether Inspection Items are in normal working order and to determine whether all requested and accepted repairs have been made. If Inspection Items are found not to be in normal working order upon re-inspection, Buyer may elect to: (1) accept Property in its condition at Closing, or (2) terminate this Real Estate Contract and recover the Earnest Money and, in the event termination is elected, both Buyer and Seller agree to sign a Termination of Contract Addendum.
If Buyer closes on Property believing conditions exist at Property that require repair as allowed by this Paragraph 16B, Buyer waives all right to assert a claim against Seller, Selling Firm or Listing Firm concerning the condition of Property. Buyer understands and agrees that, pursuant to the terms of Paragraph 16B, Buyer will be accepting Property at Closing
“AS IS, WHERE IS AND WITH ALL FAULTS”.
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17. THIRD PARTY REQUIREMENTS:
Any requirements for repair by FHA, VA, USDA-RD, the creditor, termite control company or other "third party" requirements shall be delivered to Seller promptly upon receipt by Buyer. Seller shall have five (5) business days to respond to "Third Party" requirements upon receipt or Buyer may (1) accept the property in its condition at Closing as well as the responsibility for the completion of "Third Party" requirements, or (2) terminate this Real Estate Contract and recover the Earnest Money with Buyer and Seller agreeing to sign the Termination of Contract Addendum. If Buyer and Seller are unable to negotiate for the requested "Third Party" Requirements to be performed, this contract may be terminated with Buyer and Seller both agreeing to sign the Termination of Contract Addendum.
Buyer shall have the right to re-inspect all "Third Party" Requirements immediately prior to closing to ascertain whether "Third Party" Requirements have been made. If Buyer finds "Third Party" Requirements have not been made, Buyer may (1) accept the property in its condition at Closing as well as the responsibility for the completion of "Third Party" Requirements, or (2) terminate this contract and recover the Earnest Money with Buyer and Seller both agreeing to sign the Termination of Contract Addendum
18. SELLER PROPERTY DISCLOSURE:
A. Buyer and Seller acknowledge that upon the authorization of Seller, Buyer has received and reviewed Sections 1 and 2, and has executed Section 3 of the Seller Property Disclosure prior to the execution of this Real Estate Contract but this fact neither limits nor restricts Buyer's Disclaimer of Reliance set forth in Paragraph 29 of this Real Estate Contract, nor the rights provided Buyer in Paragraph 16. Buyer and Seller agree to complete the remaining sections of the Seller Property Disclosure as required prior to Closing.
B. Buyer hereby requests Seller to provide a written disclosure about the condition of the Property that is true and correct to Seller's knowledge within three (3) business days, after this Real Estate Contract has been signed by Buyer and Seller. If Seller does not provide the disclosure within the three (3) business days, Buyer may declare this Real Estate Contract terminated with Buyer and Seller both agreeing to sign the Termination of Contract, with Buyer to receive a refund of the Earnest Money. If Buyer finds the disclosure unacceptable within three (3) business days after receipt of disclosure, this Real Estate Contract may be declared terminated by Buyer, with Buyer and Seller both agreeing to sign the Termination of Contract with Buyer to receive a refund of the Earnest Money. Receipt of this disclosure neither limits nor restricts in any way Buyer's Disclaimer of Reliance set forth in Paragraph 29 of this Real Estate Contract, nor the rights provided to Buyer in Paragraph 16.
C. Although a disclosure form may have been completed (or can be completed) by Seller, Buyer has neither received nor requested and does not desire from Seller a written disclosure concerning the condition of the Property prior to the execution of this Real Estate Contract, but this fact neither limits nor restricts in any way Buyer's Disclaimer of Reliance set forth in Paragraph 29 of this Real Estate Contract. BUYER IS STRONGLY URGED BY SELLING FIRM AND LISTING FIRM TO MAKE ALL INDEPENDENT INSPECTIONS DEEMED NECESSARY PRIOR TO SIGNING THIS REAL ESTATE CONTRACT, IN ADDITION TO THOSE INSPECTIONS PERMITTED BY PARAGRAPH 16B OF THIS REAL ESTATE CONTRACT.
D. Buyer understands no disclosure form is available and will not be provided by Seller. This fact neither limits nor restricts in any way the Buyer’s Disclaimer of Reliance set forth in Paragraph 29 of this Real Estate Contract. BUYER IS STRONGLY URGED BY SELLING FIRM AND THE LISTING FIRM TO MAKE ALL INDEPENDENT INSPECTIONS DEEMED NECESSARY PRIOR TO SIGNING THIS REAL ESTATE CONTRACT, IN ADDITION TO THOSE INSPECTIONS PERMITTED BY PARAGRAPH 16B OF THIS REAL ESTATE CONTRACT.
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19.TERMITE CONTROL REQUIREMENTS: A. None
B. A Letter of Clearance (Wood Infestation Report) requiring a Termite Protection Contract with a One- Year (1) Warranty to include treatment if allowed by applicable law and the Arkansas State Plant Board and full protection plan shall be provided by Seller at Seller's cost at Closing. Seller shall order a proposal from a licensed Termite Contractor within ten (10) business days after acceptance of this Real Estate Contract. All repairs necessary to allow issuance of such Termite Protection Contract, excluding a new Termite Protection Treatment, are to be part of the Third-Party Requirements pursuant to Paragraph 17. If Buyer is obtaining financing, such Termite Protection Contract shall be in a form acceptable to the creditor and Buyer.
C. Other: ___________________________________________________________________________
20. LEAD-BASED PAINT RISK ASSESSMENT/INSPECTION:
A. Buyer understands and agrees that, according to the best information available, improvements on this Property were not constructed prior to 1978 and should not contain lead-based paint hazards.
B. Buyer has been informed that the Property, including without limitation garages, tool sheds, other outbuildings, fences, signs and mechanical equipment on the Property that were constructed prior to 1978, may contain lead-based paint. Seller will provide the Lead-Based Paint Disclosure (pre-1978 construction) within three (3) business days after acceptance of this Real Estate Contract. The obligation of Buyer under this Real Estate Contract is contingent upon Buyer's acceptance of the Lead-Based Paint Disclosure provided by Seller and an Inspection and/or Risk Assessment of the Property for the presence of lead- based paint and/or lead-based paint hazards obtained at Buyer's expense. If Buyer finds either the Lead- Based Paint Disclosure or the Inspection and/or Risk Assessment unsatisfactory, in the sole discretion of Buyer, within ten (10) calendar days after receipt by Buyer of the Lead-Based Paint Disclosure, Buyer shall have the absolute option to unilaterally terminate this Real Estate Contract with Earnest Money returned to Buyer and, with neither Buyer nor Seller having further obligation to the other thereafter. Buyer shall submit any request for abatement repairs in writing as part of the Third-Party Requirements specified in Paragraph 17 of the Real Estate Contract. Buyer may remove this contingency and waive the unilateral termination right at any time without cause by written General Addendum signed by Buyer and delivered to Seller. If Buyer does not deliver to Seller or Listing Firm a Termination of Real Estate Contract Addendum terminating this Real Estate Contract within the ten (10) calendar days after receipt by Buyer of the Lead-Based Paint Disclosure, this contingency shall be deemed waived and Buyer's performance under this Real Estate Contract shall thereafter not be conditioned on Buyer's satisfaction with the Lead-Based Paint Inspection and/or Risk Assessment of the Property.
Buyer has been advised of Buyer's rights under this Paragraph 20.
21.INSURANCE: This Real Estate Contract is conditioned upon Buyer's ability to obtain homeowner/hazard insurance for the Property within ten (10) business days after the acceptance date of this Real Estate Contract. If Buyer does not deliver to Seller or Listing Firm a written notice from an insurance company within the time set forth above of Buyer's inability to obtain homeowner/hazard insurance on the Property, this condition shall be deemed waived (but without waiver of conditions, if any, set in Paragraph 3) and Buyer's performance under this Real Estate Contract shall thereafter not be conditioned upon Buyer's obtaining insurance. If Buyer has complied with the terms of this Paragraph 21 and has timely provided written notice to Seller of Buyer's inability to obtain such insurance, this Real Estate Contract shall be terminated, with Buyer and Seller agreeing to sign a Termination of Contract Addendum and Earnest Money returned to Buyer, subject to Earnest Money Addendum.
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22.CLOSING: Closing is the date and time at which Seller delivers the executed and acknowledged deed and Buyer's completion, signing and delivery to Seller (or Closing Agent agreed to by Buyer & Seller) of all loan, closing documents and Purchase Price funds required to be executed or delivered by Buyer (the "Closing"). Buyer and Seller agree the Closing date will be (month)
_____________________September (day) _______21 , (year) ___________2022 . The Closing date may be changed by written agreement of Buyer and Seller. If the sale is not consummated by the Closing date, (or any written extension thereof), the parties shall have the remedies available to them in equity or at law, including the remedies available to them in Earnest Money Addendum.
Buyer and Seller shall have the right to choose their Closing Agent(s) and are not relying on Listing Firm or Selling Firm to choose a Closing Agent. Should Buyer or Seller choose the services of a Closing Agent(s) other than Selling Firm or Listing Firm, then Buyer and Seller each jointly and severally agree to indemnify and hold Listing Firm and Selling Firm harmless for all intentional misconduct and negligent acts (including acts of omission) of the Closing Agent(s).
This Real Estate Contract shall serve as written closing instructions to the Closing Agent on behalf of the Buyer and Seller. The Closing Agent(s) is/are authorized to provide Seller's closing disclosure or other settlement statement(s) to Listing Firm (in addition to Seller) and Buyer's closing disclosure or other settlement statement(s) to Selling Firm (in addition to Buyer) so Buyer, Seller, Listing Firm and Selling Firm shall have a reasonable opportunity to review prior to Closing.
Buyer and Seller shall each have the right to request title insurer(s), if any, issue closing protection to indemnify against loss of closing funds because of acts of a Closing Agent, title insurer's named employee, or title insurance agent. Any cost for closing protection will be paid by the requesting party(ies). Listing Firm and Selling Firm strongly advise Buyer and Seller to inquire of the Closing Agent(s) about the availability and benefits of closing protection.
This Real Estate Contract shall, unless otherwise specified in Paragraph 30 of this Real Estate Contract, constitute express written permission and authorization to Listing Firm and Selling Firm to disclose the terms of this Real Estate Contract (and all Addenda), including without limitation concessions provided by Buyer or Seller or other non-public personal information of Buyer and Seller regarding the purchase and sale of the Property, to any of the following: (i) an Arkansas licensed appraiser;
(ii)multiple listing services for use by the members thereof; and (iii) any other person or entity which Listing Firm or Selling Firm determines, using sole discretion, may have a legitimate basis to request and obtain such information. The authorization and permissions granted in this Paragraph 22 shall not create any obligation or duty upon Listing Firm or Selling Firm to make any disclosure to any person or entity.
23.POSSESSION: Possession of the Property shall be delivered to Buyer:
A. Upon the Closing.
B. Delayed Possession. (See Delayed Occupancy Addendum attached) C. Prior to Closing. (See Early Occupancy Addendum attached)
24.ASSIGNMENT: This Real Estate Contract may not be assigned by Buyer unless written consent of Seller is obtained, such consent not to be unreasonably withheld. It shall not be unreasonable for Seller to withhold consent if Seller is to provide financing for Buyer in any amount.
25.RISK OF LOSS: Risk of loss or damage to the Property by fire or other casualty occurring prior to the time Seller delivers an executed and acknowledged deed to Buyer is expressly assumed by Seller. Should the Property be damaged or destroyed prior to Closing, Buyer shall have the option to: (i) enter into a separate written agreement with Seller whereby Seller will agree to restore the Property to its condition at the time this Real Estate Contract was accepted, (ii) accept all insurance proceeds related to the Property fire loss or other casualty loss and receive the Property in its existing condition, or (iii) terminate this Real Estate Contract and recover the Earnest Money. Buyer and Seller agree any written agreement concerning option (i) or (ii) above shall be prepared only by licensed attorneys representing Buyer and Seller. If Buyer elects option (ii) above, Buyer shall be entitled to credit for the insurance proceeds up to the Purchase Price, and any insurance proceeds received by Seller over and above the Purchase Price shall be tendered to Seller at Closing. Notwithstanding the choice selected in Paragraph 16, Buyer shall have the right prior to Closing to inspect the Property to ascertain any damage that may have occurred due to fire, flood, hail, windstorm or other acts of nature, vandalism or theft.
26.GOVERNING LAW: This Real Estate Contract shall be governed by the laws of the State of Arkansas.
27.SEVERABILITY: The invalidity or unenforceability of any provisions of this Agreement shall not affect the validity or enforceability of any other provision of the Agreement, which shall remain in full force and effect.
Filling out the Arkansas Real Estate Contract for a residential property is an important step in the process of buying or selling a home. This form outlines the terms and conditions of the sale, including the price, closing date, and any contingencies that must be met before the deal can go through. By carefully completing this form, both parties can ensure they understand their rights and obligations, making the transaction smoother. Below are the steps needed to accurately fill out the Arkansas Real Estate Contract Residential form.
After the form is fully completed and signed by all parties, it should be reviewed by any legal or real estate professionals involved in the transaction. This ensures that all information is accurate and all necessary legal requirements are met. The next step usually involves the buyer securing financing, followed by inspections and appraisals as outlined in the contract contingencies. Remember, this contract is binding once signed, so it's crucial that both buyers and sellers fully understand and agree to all terms before proceeding.
What is the Arkansas Real Estate Contract Residential form?
The Arkansas Real Estate Contract Residential form is a legally binding agreement used for the sale and purchase of residential properties in the state of Arkansas. It outlines the terms and conditions between the buyer and the seller, including the purchase price, property description, closing details, and any contingencies that must be met before the sale is finalized.
Who needs to use the Arkansas Real Estate Contract Residential form?
This form is designed for use by individuals or entities involved in buying or selling a residential property in Arkansas. This includes home buyers, sellers, and real estate agents working on their behalf. It's an essential document for ensuring that all parties have a clear understanding of the agreement and their obligations.
What information is required to fill out this form?
Completing the Arkansas Real Estate Contract Residential form requires several pieces of information, including the names and contact details of the buyer and seller, a legal description of the property, the sale price, the earnest money deposit amount, the closing date, and any contingencies like financing or property inspections. Additionally, any included or excluded personal property must be listed.
Is the Arkansas Real Estate Contract Residential form customizable?
Yes, while the form provides a standard framework for the real estate transaction, certain aspects can be customized to fit the specific needs of the buyer and seller. For example, parties can negotiate terms such as the closing date, contingencies, and the inclusion of any personal property. Legal counsel can provide guidance on how to modify the form appropriately.
What happens if a contingency in the contract is not met?
If a contingency outlined in the contract is not met, the agreement may be voided, and the earnest money deposit could be returned to the buyer. Contingencies are conditions that must be satisfied for the transaction to proceed, such as securing financing, selling an existing home, or satisfactory results from a home inspection. Each contingency should specify what happens if it is not met.
How is the closing date determined in the contract?
The closing date is typically negotiated between the buyer and seller during the contract drafting phase and is clearly stated in the agreement. This date is significant because it marks the completion of the transaction, with the property officially changing hands. It's essential to select a realistic closing date that allows enough time for inspections, financing approval, and any other contingencies.
Can either party back out of the contract once it's signed?
After the contract is signed, backing out without facing legal consequences is challenging. However, the contract may include specific clauses that allow either party to terminate the agreement under certain conditions, such as failure to meet contingencies. It's crucial to understand these provisions and the potential penalties for breaking the contract before signing.
What steps should be taken after the contract is signed?
Once the contract is signed, the buyer typically proceeds with the property inspection and works to secure financing if necessary. Meanwhile, the seller should ensure that the property is in the condition agreed upon and prepare for the transfer of ownership. Both parties should also begin preparing for closing by coordinating with a title company or attorney to manage the paperwork and logistics involved in finalizing the sale.
When filling out the Arkansas Real Estate Contract Residential form, individuals often encounter pitfalls that could significantly affect the transaction process. Recognizing and avoiding these mistakes is essential for a smooth real estate transaction.
Not fully reviewing the contract before signing: Many individuals fail to read through each section of the contract thoroughly. This oversight can lead to misunderstandings about the terms and obligations.
Omitting important details: Leaving out critical information such as the legal description of the property, or specific personal details of the buyer or seller, can invalidate the contract or cause delays.
Incorrectly filling in the financial details: Misstating the purchase price, down payment amount, or misunderstanding financial terms can lead to disputes or financial discrepancies.
Skipping contingencies: Failing to include necessary contingencies like home inspections, financing, or the sale of a current home can lock individuals into the contract without a way out if something goes wrong.
Not specifying who pays for certain expenses: If the contract does not clearly state who is responsible for costs such as closing costs, surveys, or repairs, disputes can arise, potentially delaying the closing.
Misunderstanding closing dates and possession: Not accurately specifying the closing and possession dates can cause scheduling conflicts and misunderstandings between the parties involved.
Neglecting to detail included and excluded personal property: Failure to explicitly list which items are included or excluded from the sale (e.g., appliances, light fixtures) can lead to disagreements at closing.
Not having the contract reviewed by a professional: Many individuals choose not to have a real estate professional or attorney review the contract before signing. This decision can result in overlooking important aspects or errors that could affect the transaction's legality or fairness.
By avoiding these common errors, individuals can better protect their interests and facilitate a more efficient and effective real estate transaction.
Engaging in real estate transactions can be both exciting and complex, requiring a careful understanding of the documents involved. When dealing with an Arkansas Real Estate Contract for residential property, it's crucial to be mindful of additional forms and documents that might be required or beneficial during the process. These documents play key roles in ensuring a smooth, legally compliant transaction, from initial offer to closing. Here's a look at some of these important documents :
Navigating the array of documents required for a real estate transaction in Arkansas requires attention to detail and an understanding of their significance. Each document plays a distinct role in protecting the interests of the buyer, seller, and lender, helping to ensure that the transfer of property is executed smoothly and legally. Armed with the right information and guidance, participants in a real estate transaction can approach the process with confidence and clarity.
The Arkansas Real Estate Contract Residential form shares similarities with the Purchase Agreement, commonly used in many states across the country. Both documents serve as legally binding agreements between buyers and sellers regarding the sale of residential property. They outline the terms of the sale, including the purchase price, property description, and closing date. Additionally, they may include contingents like financing terms and inspection requirements, ensuring both parties are clear about the agreement's conditions.
Comparable to the Residential Lease Agreement, this form sets the foundation for a transaction involving property. While the Real Estate Contract Residential form facilitates the sale and transfer of ownership, the Residential Lease Agreement governs the rental of property. Both documents detail property specifics, payment terms, and obligations of the parties involved. They safeguard the interests of the involved parties, albeit in different contexts: one for ownership, the other for rental.
Similarly, the Property Disclosure Statement bears resemblance to the Arkansas Real Estate Contract Residential form. Sellers use the Property Disclosure Statement to inform potential buyers about the condition and details of the property, including any known defects or issues. This document complements the Real Estate Contract by providing thorough information that can influence the sale terms or even the buyer's decision. Both documents ensure transparency and honesty in the transaction, fostering trust between the buyer and seller.
The Earnest Money Receipt is another document with similarities. This receipt acknowledges the receipt of earnest money from the buyer as a show of good faith in proceeding with the purchase. Like the Real Estate Contract Residential form, it is integral to the real estate transaction process, securing the agreement's initial commitment. Both documents are crucial early steps in formalizing the intent to transfer property ownership, with the receipt focusing on the financial commitment and the contract outlining the agreement's comprehensive terms.
The Deed of Sale is notably similar to the Arkansas Real Estate Contract Residential form as both are instrumental in the property sale process, marking different stages. The Real Estate Contract signifies the agreement to sell and buy, and the Deed of Sale is the document that officially transfers ownership from the seller to the buyer. Each plays a pivotal role in the conveyance of property, ensuring clarity, legality, and protection for both parties involved in the transaction.
Like the Mortgage Agreement, the Arkansas Real Estate Contract Residential form is essential in real estate transactions that involve financing. The Mortgage Agreement outlines the terms under which the lender provides the buyer (now borrower) with funds to purchase the property, secured by the property itself. In contrast, the Real Estate Contract establishes the terms of the property's sale. Both are critical for the completion of a financed property purchase, with one detailing the sale and the other the loan specifics.
Finally, the Home Inspection Report, while not a contract, complements the Arkansas Real Estate Contract Residential form in a significant way. It provides an objective evaluation of the property's condition, which can influence negotiations and contingencies outlined in the Real Estate Contract. Both documents work hand in hand to ensure the buyer is informed about what they are committing to purchase, contributing to a transparent and fair real estate transaction.
Filling out the Arkansas Real Estate Contract Residential form requires attention to detail and an understanding of the process. Below are key dos and don'ts to guide you:
Do:
Don't:
When it comes to buying or selling a home in Arkansas, the Real Estate Contract Residential form plays a crucial role. However, there are several misconceptions about this form that need to be clarified to ensure both buyers and sellers can navigate the process with confidence.
It's only a formality. One common myth is that the Arkansas Real Estate Contract Residential form is just a procedural step without much significance. This is far from the truth. This document legally binds both the buyer and the seller to the terms of the sale, including price, closing date, and any contingencies.
It's set in stone. Some people think that once the contract is signed, there's no room for negotiation. However, amendments can be made if both parties agree. Changes often occur after the home inspection, for example, if repairs are needed.
It's overly complex. While the contract is a legal document and contains specific terms and conditions, it's structured to be as clear as possible. Real estate professionals and attorneys can help explain any terms you're not familiar with.
It's identical in every state. Real estate laws vary by state, and so does the Real Estate Contract Residential form. The form used in Arkansas is tailored to meet state-specific requirements and regulations.
Only a real estate agent can fill it out. While real estate agents are familiar with these contracts and can fill them out, buyers and sellers can complete the form themselves or with the help of a lawyer. However, having a professional assistance is often beneficial to avoid mistakes.
All contingencies are the same. Contingencies – conditions that must be met for the sale to go through – can vary greatly. Common ones include financing, home inspection, and sale of a current home, but they can be customized to fit the needs of the buyer and seller.
The contract covers everything. While the Real Estate Contract Residential form covers a wide range of issues related to the sale, certain aspects like specific home warranties or detailed inspection requirements might need separate agreements or addenda.
Signing the contract locks you in immediately. While signing the contract is a significant step towards closing the sale, contingencies included in the contract must first be satisfied. Moreover, certain circumstances, such legally valid reasons for a party to back out, can still affect the sale.
Understanding these aspects of the Arkansas Real Estate Contract Residential form can help make the home buying or selling process smoother and more transparent. Remember, when in doubt, it's always a good idea to consult with a real estate professional or legal advisor.
When completing the Arkansas Real Estate Contract Residential form, it is crucial to understand its significance and the best practices for filling it out accurately. This contract is a legally binding agreement between the buyer and seller, detailing the terms and conditions of the real estate transaction. To ensure clarity and compliance, here are four key takeaways to consider:
By adhering to these practices, both buyers and sellers can navigate the transaction process more smoothly, ensuring their rights and interests are protected throughout the sale.
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