Basic Purchase AgreementsBenjamin E. Moore

Rembolt Ludtke LLP, Lincoln

August 12, 2015University of Nebraska College of Law, Lincoln

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Real Estate Purchase Agreements

By Ben Moore

Biographical Sketch

Ben Moore is a partner in the law firm of Rembolt Ludtke LLP, inLincoln, Nebraska. He received his undergraduate degree inaccounting and finance at Kansas State University, and his law degreefrom the University of Nebraska College of Law. He was admitted tothe Nebraska State Bar in 2009. His practice areas include businesslaw, real estate, estate planning, bankruptcy, and taxation.

The law firm of Rembolt Ludtke is located at 1128 Lincoln Mall, Ste.300, Lincoln, Nebraska (bmoore@remboltlawfirm.com)

The Statute of Frauds

• Neb. Rev. Stat. Section 36-105 provides that a contract for the sale of land is void “unless the contract or some note or memorandum thereof be in writing and signed by the party by whom the . . . sale is to be made.”

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Minimum Requirements

• In Ord v. Benson, 163 Neb. 367, 370 (1956) the Nebraska Supreme Court stated:

A memorandum, in order to make enforceable a contract within the statue [of frauds] may be any document or writing, formal or informal, signed by the parties to be charged . . . which states with reasonable certainty, (a) each party to the contract either by his own name or by such a description as will serve to identify him . . . and (b) the land . . . to which the contact relates, and (c) the terms and conditions of all the promises constituting the contract. . . .”

Types of Purchase Agreements

• Short Term Contracts

• Installment Contracts

• Option Agreements

Other:

• Direct (Like-Kind) Exchange Agreements

Drafting Considerations

• Seller’s Desires– To be paid as and when agreed

– To be able to walk away from any problems discovered after the sale of the real estate (avoid litigation)

– To obtain favorable tax treatment (1031 exchange)

• Buyer’s Desires– To acquire the real estate

– To obtain the benefit of the bargain

– To hold Seller responsible for any problems discovered after acquisition of the real estate

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12 Tips for Drafting BetterReal Estate

Purchase Agreements

1. Authority to Sell Property

• Always identify the legal owner(s)of the property– Co-Owners and Spouses)

• A married person cannot convey a property unless the instrument is executed and ACKNOWLEDGED by both husband and wife.

• “Deed to convey homestead is void if not executed by both husband and wife” Krueger v. Callies, 190 Neb. 376 (1973).

– Partnerships, Corporations, and Limited Liability Companies• Who has authority to sign on behalf of the entity

• Administrative Dissolutions and issues of authority

• Drafting Consideration:– Identify marital status in purchase agreement (and deed)

– Draft purchase agreements with notarized signatures

2. Correct Legal Description

• Most common problems:– Legal descriptions that describe wrong parcel or less than entire

parcel

– Metes and bounds legal descriptions that do not “close”

• Drafting Consideration:– Review legal description for any obvious errors

– Include language in purchase agreement for Seller to obtain a survey

• Correcting Errors After Closing on the Sale:– Equity is available to reform a legal description in a deed where

there is a mistake in the description that is “mutual to both parties.” Cunningham v. Covalt, 204 Neb. 512, 518 (1979)

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3. Adequate Consideration

• Situation: Inspection provision in purchase agreement gives Buyer the right to terminate the purchase agreement and receive a refund of earnest deposit if “the condition of the real property is unsatisfactory in Buyer’s subjective discretion”

• Is this an option agreement unsupported by consideration? – Is it saved by an implied covenant of good faith and fair dealing?

– See Steiner v. Thexton, 226 P.3d 359 (Cal. 2010).

• Drafting Consideration:

– If representing Buyer, consider including an attorney approval clause as a condition precedent. See Moran v Erk, 901 N.E.2d 187 (N.Y. 2008).

4. Property Seller Disclosure Statement

• Neb. Rev. Stat. Section 76-2,120 requires the delivery of a Property Seller Disclosure Statement by the Seller.– Applies to residential real estate

– Must be delivered prior to the Buyer signing purchase agreement

– Neb. Rev. Stat. 76-2,120(12) specifies a cause of action for failure to comply with the statute.

• Drafting Consideration:– Seller’s counsel: How much do you disclose?

– Buyer’s counsel: Add Seller representations that there are no material defects in the property known to Seller that are not set forth on the Seller Property Condition Disclosure Statement.

5. Proration of Real Estate Taxes

• Real Estate Property Taxes are Prorated Differently in various parts of Nebraska Based on Local Custom– Douglas or Sarpy County

• Real estate taxes which become delinquent in the year in which the closing takes place are pro-rated.

– Any other Nebraska County• Real estate taxes which are assessed in the year in which the

closing taxes placed are pro-rated

• Drafting Consideration:– Always check where the real estate is located and include

correct formula for tax proration.

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6. Mandatory Repair Obligations

• Situation 1: Purchase Agreement provides that Seller will repair all items discovered by an inspection not to exceed $1,000.

• Situation 2: Purchase Agreement provides that if inspections disclose presence of radon Seller will pay the cost of mitigation [Same scenario with termites]

• Drafting Consideration:– If representing the seller, avoid provisions which obligate the Seller to

make repairs up to a certain cap. A good home inspector will always find something to fix, and Buyers will use the full repair allowance.

– If representing the buyer, give Buyer as much control over repairs as possible

7. Seller-Financed Sales

• Situation: Buyer cannot obtain financing to purchase the house, so Seller agrees to sell the house on an “installment sale.”

• Problems– Lack of promissory note makes it easier for Buyer to assert

defenses to payment on the installment sale contract

– Lack of deed of trust makes it more time consuming and costly to foreclose the equitable mortgage.

• Drafting Consideration– Use a promissory and deed of trust; attach as Exhibits

8. Representations and Warranties

1. In almost all Purchase Agreements, the buyer and the seller make representations and warranties to each other ("Reps and Warranties").

2. Buyer wants the Seller to make broad and absolute warranties, while Seller does not want to make any warranties, or wants to make only warranties that are narrow, qualified, or limited in scope.

3. Narrowing Reps and Warranties:1. Limit the SIZE of Reps and Warranties to things that are within a party’s

knowledge and not easily discoverable by the other party

2. Limit the SCOPE of Reps and Warranties to a party’s actual knowledge

3. Limit the DURATION of Reps and Warranties• Reps and Warranties do not automatically survive Closing

– Union Pacific Land Resources Corp. v. Park Towne, Ltd. 212 Neb. 83 (1982)

• For Reps and Warranties that expressly survive Closing, whether the default five-year statute of limitations claim is too long.

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9. Financing Contingencies

• Situation: Buyer of commercial 4-plex rental property adds a financing contingency to the purchase agreement requiring Buyer to close only if Buyer obtains a loan at a rate not to exceed 3.5% annual, for a term of not less than 20 years.

• Problem: Most commercial loans for this type of property are between 5 and 10 years.

• Drafting Consideration: Evaluate whether the requested terms are reasonable.

10. Title Insurance Commitment

• Review exceptions listed on title commitment– Watch for deeds containing restrictive covenants or rights of first

refusal

– Watch for covenants and restrictions, and confirm there are no restrictions against Buyer’s intended use.

• Understand what the title policy covers (and not cover) and what types of policy endorsements might be appropriate for Buyer.

• Drafting Considerations– Require Seller to provide a preliminary title commitment not less

than 10 days prior to closing to allow sufficient time for review.

11. For Sale By Owner Transactions

• Residential Lead-Based Paint Hazard Reduction Act– Mandatory disclosure of known information on lead-based paint

before the sale or lease of most housing built before 1978.• Lead-based paint disclosure agreement

• Lead-based paint pamphlet/brochure

• Buyer and Seller are both personally known by attorney– Attorney should clearly identify and communicate who is being

represented (and not represented) in the transaction.

• Foreign Investment in Real Property Tax Act– Buyer should require a Non-Foreign Seller Affidavit

• IRS Reporting Requirements – Issue a 1099-S

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12. Reliance on Forms

• Every real estate transaction is different

• Use “forms” with caution, and develop a checklist to spot issues for various transactions, then draft accordingly.

• Recognize that local custom regarding real estate sales varies by county, state, and region. If you are not familiar with an area, work with a real estate broker, escrow company, or real estate attorney to identify important local customs.

Real Estate Resources

• The Nebraska NCLE Real Estate Practice Manual (a/k/a the “Red Book”) covers:– Like Kind Exchanges

– Seller Property Condition Disclosure Statement

– The Purchase Agreement

– Surveys, Descriptions and Boundaries

– Financing: Mortgages, Trust Deeds, Land Contracts

– Title Insurance

– Nebraska Title Standards

– Deeds

– Escrow

– Condominiums and Housing Associations

Questions?

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NEBRASKA REAL ESTATE COMMISSION SELLER PROPERTY CONDITION DISCLOSURE STATEMENT

Residential Real Property

Page 1 of4 7/11J1Z

THIS DISCLOSURE STATEMENT IS BEING COMPLETED AND DELIVERED IN ACCORDANCE WITH NEBRASKA LAW. NEBRASKA LAW REQUIRES THE SELLER TO COMPLETE THIS STATEMENT (NEB. REV. STAT. §76-2,120).

How long has the seller owned the property? ___ year(s)

Is seller currently occupying the property? (Circle one) YES I NO If yes, how long has the seller occupied the property? ___ year(s)

If no, has the seller ever occupied the property? (Circle one) YES I NO If yes, when? From ___ (year) to ___ (year)

This disclosure statement concerns the real property located at---------------------------------in the city of County of _____________ , State of Nebraska and legally described as:

This statement is a disclosure of the condition of the real property known by the seller on the date on which this statement is signed. This statement is NOT a warranty of any kind by the seller or any agent representing a principal in the transaction, and should NOT be accepted as a substitute for any inspection or warranty that the purchaser may wish to obtain. Even though the information provided in this statement is NOT a warranty, the purchaser may rely on the information contained herein in deciding whether and on what terms to purchase the real property. Any agent representing a principal in the transaction may provide a copy of this statement to any other person in connection with any actual or possible sale of the real property. The information provided in this statement is the representation of the seller and NOT the representation of any agent, and is NOT intended to be part of any contract between the seller and purchaser.

Seller please note: you are required to complete this disclosure statement IN FULL. If any particular item or matter does not apply and there is no

provision or space for indicating, insert "N/A" in the appropriate box. If age of items is unknown, write "UNK" on the blank provided. If the property

has more than one item as listed below please put the number in the appropriate box. For example - if the home has three room air conditioners, one

working, one not working, and one not included, put a "1" in each of the 'Working", "Not Working", and "None/Not Included" boxes for that item, and

a "3" on the line provided next to the item description to indicate total number of item. You may also provide additional explanation of any item in the

comments section in PART Ill.

SELLER STATES THAT, TO THE BEST OF THE SELLER'S KNOWLEDGE AS OF THE DATE THIS DISCLOSURE STATEMENT IS COMPLETED AND SIGNED BY

THE SELLER, THE CONDITION OF THE REAL PROPERTY IS:

PART I - If there is more than one of any item in this Part, the statement made applies to each and all of such items unless otherwise noted in the Comments section in PART Ill of this disclosure statement, or number separately as provided in the instructions above. If an item in this Part is not on the property, or will not be included in the sale, check only the "None/Not included" column for that item.

Do Not None/ Section A -Al!l!liances Not Know If Not

Do Not None/ Section B - Electrical S!stems Not Know If Not

Working Working Working Included Working Working Working lnduded

1. Refrigerator 1. Electrical service panel capacity __ AMP Capacity (If known)

2. Clothes Dryer fuse circuit breakers

2. Celling fan(s) ( ___ number I 3. Clothes Washer

3. Garage door opener(s) ( ___ number I 4. Dishwasher

4. Garage door remote(s) ( ___ number I 5. Garbage Disposal 5. Garage door keypad(s) ( ___ number)

6. Freezer 6. Telephone wiring and Jacks

7.0ven 7. Cable TV wiring and jacks

8.Range 8. Intercom or sound system wiring

9. Cooktop 9. Built-In speakers

10. Microwave oven 10. Smoke detectors ( ___ number I

11. Fire alarm 11. Built-In vacuum system and equipment

12. Room ventilation/exhaust fan L_number) 12. Range ventllatlon systems

13. 220 volt service

13.Gasgrlll 14. Security System

14. Room air conditioner ( __ number) --owned --Leased __ Central station monitoring

15. TV antenna I Satellite dish 15. Have you experienced any problems with the If YES, explain the condition in the electrical system or Its components? comments section in PART Ill of this

16. Trash compactor --YES --NO disclosure statement.

Seller's Initials _J__ Property Address---------------- Buyer's Initials_} __

Do Not None/ Section C - Heating and Cooling Systems Not Know If Not

Working Working Working Included

1. Air purifier

2. Attic fan

3. Whole house fan

4. Central air conditioning __ year installed (if known}

5. Heating system __ year installed (if known}

Gas Electric -- --___ Other (specify I

6. Fireplace I Fireplace Insert

7. Gas log (fireplace)

8. Gas starter (fireplace)

9. Heat pump __ year installed (if known)

10. Humidifier

11. Propane Tank __ year installed (if known}

Rent Own -- --12. Wood-burning stove __ year Installed (if known}

Section D - Water Systems

Working

1. Hot tub/ whirlpool

2. Plumbing (water supply}

3. Swimming pool

4. a. Underground sprinkler system

b. Back-flow prevention system

5. Water heater ___ year installed (if known)

6. Water purifier ___ year installed (If known}

7. Water softener Rent Own --- --8. Well system

Section E - Sewer Systems

Working

1. Plumbing (water drainage)

2. Sump pump (discharges to I

3. Septic System

Not Working

Not Working

Page 2 of 4 7/2012

Do Not None/ Know If Not Working Included

Do Not None/ Know If Not Working Included

PART II - In Sections A, B, C, and D if the answer to any item is "YES", explain the condition in the comments Section in PART Ill of this disclosure statement.

Section A. Structural Conditions - If there is more than one of any item listed in this Section, the statement made applies to each and all of such items unless otherwise

noted in the comment section in PART Ill of this disclosure statement.

Se13ign A - Structural Conditions Do Not

YES NO Know Section A - Structurilll Com!b;lgns

Do Not YES NO Know

1. Age of roof (if known) ___ year(s} N/A N/A 10. Year property was built (if known) N/A N/A 2. Does the roof leak? 11. Has the property experienced any moving or ------ ------ ------3. Has the roof leaked?

settling of the following:

4. Is there presently damage to the roof? - Foundation

5. Has there been water Intrusion In the - Floor basement or crawl space?

6. Has there been any damage to the real -Wall

property or any of the structures thereon due to the following occurrences Including, -Sidewalk

but not limited to, wind, hall, fire, flood, wood-destroying Insects, or rodents? -Patio

7. Are there any structural problems with the structures on the real property?

-Driveway

8. Is there presently damage to the chimney? - Retaining wall

9. Are there any windows which presently leak, or do any Insulated windows have any 12. Any room additions or structural changes?

broken seals?

Section B. Environmental Conditions - Have any of the following substances, materials, or products been on the real property? If tests have been conducted for any of the

following, provide a copy of all test results, if available.

Section I - ~v!ronmeml 9lo!illtigo1 DoNot

YES NO Know ~13ign I - Envirgnm1ngil ~nditign1 Do Not

YES NO Know

1.Asbestos 5. Radon gas

2. Contaminated soil or water 6. Toxic materials

(Including drinking water) 7. Underground fuel, chemical or other type of

3. Landfill or burled materials storage tank?

8. Hazardous substances, materials or products

4. Lead-based paint Identified by the Environmental Protection Agency or Its authorized Nebraska Deslgnee (excluding ordinary household cleaners)

Seller's Initials __J__ Property Address _______________ _ Buyer's lnitials__J __

Section C. Title Conditions - Do any of the following conditions exist with regard to the real property?

Section C - Title Conditions Do Not

YES NO Know Section C - Title Conditions YES

1. Any features, such as walls, fences and driveways 10. Does ownership of the property entitle the owner which are shared? to use any "common area• facilities such as pools,

2. Any easements, other than normal utility tennis courts, walkways, or other common use easements? areas?

3. Any encroachments? 11. Is there a common wall or walls?

4. Any zoning violations, non-conforming uses, or violations of "setback" requirements?

b. Is there a party wall agreement?

5. Any lot-line disputes? 12. Any lawsuits regarding this property during the

ownership of the seller? 6. Have you been notified, or are you aware of, any

work planned or to be performed by a utility or municipality dose to the real property including, but not limited to sidewalks, streets, sewers,

13. Any notices from any governmental or quasi-governmental agency affecting the real property?

14. Any unpaid bills or claims of others for labor

water, power, or gas lines? and/or materials furnished to or for the real

7. Any planned road or street expansions, improvements, or widening adjacent to the real property?

property? 15. Any deed restrictions or other restrictions of

record affecting the real property?

8. Any condominium, homeowners', or other type of 16. Any unsatisfied Judgments against the seller? association which has any authority over the real property? 17. Any dispute regarding a right of access to the real

property? 9. Any private transfer fee obligation upon sale? 18. Any other title conditions which might affect the

rea I property?

Section D. Other Conditions - Do any of the following conditions exist with regard to the real property?

Section D - Other Conditions Do Not

YES NO Know Section D - Other Conditions

YES

1. a. Are the dwelling(s) and the Improvements 8. a. Is the real property in a flood plain? connected to a public water system?

b. Is the system operational?

2. a. Are the dwelling(s) and the improvements connected to a private, community (non-public), or Sanitary Improvement District (SID) water system?

b. Is the system operational?

b. Is the real property in a floodway?

9. Is trash removal service provided to the real property? If so, are the trash services ___ public ___ private

10. Have the structures been mitigated for radon? If yes, when? _J_J

3. If the dwelling(s) and the Improvements are 11. Is the property connected to a natural gas system?

connected to a private, community (non-public) or SID water system Is there adequate water supply for regular household use (I.e. showers,

12. Has a pet lived on the property? Type(s)

laundry, etc.)? 13. Are there any diseased or dead trees, or shrubs on

4. a. Are the dwelllng(s) and the Improvements the real property?

connected to a public sewer system? 14. Are there any flooding, drainage, or grading b. Is the system operational? problems In connection to the real property?

5. a. Are the dwelllng(s) and the Improvements connected to a community (non-public) or SID sewer system?

15. a. Have you made any Insurance or manufacturer claims with regard to the real property?

b. Is the system operational? b. Were all repairs related to the above claims

6. a. Are the dwelllng(s) and the Improvements completed?

connected to a septic system? 16. Are you aware of any problem with the exterior

b. Is the system operational? wall-covering of the structure Including, but not

7. Has the main sewer fine from the house ever backed up or exhibited slow drainage?

llmlted to, siding, synthetic stucco, masonry, or other materials?

Section E. Cleaning I Servicing Conditions - Have you ever performed or had performed the following? (State most recent year performed)

Section E - Cleanin1 l Servie!!I None/

'51!!d!llll!!I Do Not Not YEAR YES NO Know Included

~e!i!!gn E - Cleanln1 l ~i=rvii;;in1 Conditions

YEAR YES

1. Servicing of air conditioner 6. Cleaning of wood-burning stove, lndudlng

2. Cleaning of fireplace, lndudlng chimney chimney

7. Treatment for wood-destroying Insects or 3. Servidng of furnace rodents

4. Professional Inspection of 8. Tested well water furnace A/C (HVAC) System

5. Servidng of septic system 9. Serviced I treated well water

NO

NO

NO

Page 3 of4 7/2012

Do Not Know

Do Not Know

None/ Do Not Not Know Included

Seller's Initials__}__ Property Address ______________ _ Buyer's Initials__} __

Page4 of4 7/2012

PART Ill - Comments. Please reference comments on items responded to above in PART I or 11, with Section letter and item number. Note: Use additional pages if necessary.

If checked here ___ PART Ill is continued on a separate page(s)

SELLER'S CERTIFICATION

Seller hereby certifies that this disclosure statement, which consists of __ pages (including additional comment pages), has been completed by Seller; that Seller has completed this disclosure statement to the best of Seller's belief and knowledge as of the date hereof, which is the date this disclosure statement is completed and signed by the Seller.

Seller's Signature __________________________________ _ Date---------

Seller's Signature __________________________________ _ Date---------

ACKNOWLEDGEMENT OF RECEIPT OF DISCLOSURE STATEMENT, UNDERSTANDING AND CERTIFICATION

I/We acknowledge receipt of a photocopy of the above Seller Property Condition Disclosure Statement; understand that such disclosure statement is NOT a warranty of any kind by the seller or any agent representing any principal in the transaction; understand that such disclosure statement should not be accepted as a substitute for any inspection or warranty that I/we may wish to obtain; understand the information provided in this disclosure

statement is the representation of the seller and not the representation of any agent, and is not intended to be part of any contract between the seller

and purchaser; and certify that disclosure statement was delivered to me/us or my/our agent on or before the effective date of any contract entered into by me/us relating to the real property described in such disclosure statement.

Purchaser's Signature _________________________________ _ Date---------

Purchaser's Signature---------------------------------- Date---------

Seller's Initials_/__ Property Address _______________ _ Buyer's Initials__} __

m REALTOR°

THIS IS A LEGALLY BINDING AGREEMENT, IF NOT UNDERSTOOD, SEEK LEGAL ADVICE.

PURCHASE AGREEMENT for exclusive use by members of the

REAL TORS® ASSOCIATION OF LINCOLN 200

EOUAL HOUSING OPPORTUNITY

_____________ (Date)

---------------------------~Lincoln,Nebraska

1. Property. The undersigned, as Buyer, agrees to purchase the following property:

Address:---------------------------------------------~

Legal Description:---------------------------------------------____________________________________________ (Properry)

including all fixtures and equipment permanently attached to Property. The only personal property included is as follows: ---------

2. Title Insurance. Buyer shall be furnished a current title insurance commitment before closing and an ALTA Homeowner's Policy of Title Insurance or a different policy chosen by Buyer, insuring marketability, from a title insurance company chosen by Buyer. The cost of title insurance

issued for this sale shall be paid as follows: ------------------------------------

--------------------------------· Buyer agrees that should a valid title defect exist, Seller has a reasonable time to correct said defect, not to exceed 30 days from the date of the title commitment. If the title defects are not cured within such time period, Buyer may declare this Agreement null and void, and the earnest money shall be refunded.

3. Conveyance of Title and Authority of Parties.

(a) Seller agrees to convey to Buyer by warranty deed or free and clear of all liens, encumbrances, special assessments levied or assessed and subject to all easements and restrictions of record. Seller agrees to pay any assessments for items such as paving, curbing, sidewalk or utilities previously constructed, now under construction, or ordered to be constructed by public authority but not yet assessed as of the date of this Agreement. The documentary stamp tax shall be paid by Seller.

(b)The undersigned Seller(s) and Buyer(s) each represent and warrant that they are duly empowered and/or authorized, whether individually, on behalf of any entity or as a fiduciary, to enter into this Purchase Agreement and create a valid and binding contract. And that, as to Seller, all parties required

to transfer title to the Property are parties to this contract.

4. Price and Financial Terms. Buyer agrees to pay $ , on the following terms: an earnest money deposit of $ at this time as shown by the receipt set forth below. If paid by check, it shall be payable to the selling broker. The check will be cashed. All monies shall be deposited in the selling broker's trust account, to be held until the time of closing. If the selling broker is not closing the transaction, the earnest money shall be transmitted to the party closing the transaction at a time to be determined by the selling broker. The closing agent, if not the listing broker, shall be chosen by agreement of Buyer and Seller. The balance due Seller shall be paid as shown in Paragraph(s) # following:

(a) Buyer's Obligations Upon Loan or Assumption: Buyer shall negotiate a new loan or shall assume the existing mortgage or deed of trust. Buyer agrees to sign all papers and pay all related costs, and to establish escrow reserves as required. Buyer's best efforts shall be used to obtain the loan or approval for the assumption. If the loan or assumption is not applied for within days from the date of acceptance, this offer shall be null and void and the earnest money shall be forfeited. If processing of the loan or assumption has not been completed by the lending agency by the closing date specified elsewhere in this Agreement, the time limit shall be automatically extended until the lending agency has, in the normal course of its business, advised either approval or rejection, but if the Buyer does not have final loan approval within 30 days after the closing date set in this contract, either party shall have the right to send a notice of termination to

Form 200, Page 1 of7 Approved 5/22/13 © Copyright Midlands MLS Inc. 2012

the other; in which case, the fmancing contingency shall be treated as having failed and Buyer shall be entitled to a refund of earnest money. If this offer is not contingent on the sale of real estate owned by Buyer and the lender requires as a condition of granting the loan that the real estate owned by Buyer be sold, then Seller shall have the option to declare this Agreement null and void unless further written agreement between Buyer and Seller is obtained.

(b) Conditional Upon New Loan: Balance shall be paid in cash, or by cashier's check at time of delivery of deed, contingent upon Buyer's ability to obtain a loan in the amount of$ , secured by first mortgage or deed of trust. The loan is to be (describe loan): Type , at a rate not to exceed % for a term of not less than years. Maximum of ____ % origination fee plus % loan discount.

At the time ofclosing of this sale, Seller agrees to pay$ of Buyer's expenses connected with the sale or closing of the sale of the Property which are permitted by Buyer's lender to be paid by Seller.

(c) Assume Existing Loan: Buyer agrees to assume and pay the existing mortgage or deed of trust note balance in favor of __________________________ in the approximate amount of$ and

pay the balance in cash, or by cashier's check at the time of delivery of deed. It is understood that the note terms provide a current interest rate of % per annum and payments of approximately $ per month. The payment includes

--------------· Interest on the existing loan shall be prorated to date of closing. Buyer agrees to reimburse Seller for the amount in the escrow reserve account which is to be assigned to Buyer. Seller agrees that loan and escrow reserves will be current at time of closing. Buyer agrees to pay assumption fees, if any. Buyer D does, or D does not agree to obtain a release of liability of Seller from Seller's loan before closing.

( d) All Cash: Balance shall be paid in cash, or cashier's check at time of delivery of deed, no financing being required.

( e) Seller Financing: Balance to be evidenced by with Seller. Buyer to make an additional payment by cash or cashier's check of $ at time of execution of the instruments, and closing. The remainder of $ shall be paid in monthly payments of $ , or more, which monthly payments shall include interest at the rate of % per annum computed monthly on the unpaid portion of the principal. The debt shall be amortized over ____ years with a balloon payment on (Date). All other terms and conditions of the instruments shall be as mutually agreed. D Buyer's, or D Seller's attorney shall prepare the instruments with cost of preparation paid by: __

6. Addenda attached. The attached addenda are made a part of this Purchase Agreement (Please Initial) (Seller __ / __J (Buyer __ /__)

(List Addenda):----------------------------------------

7. Maintenance. Seller agrees to maintain the Property, including, but not limited to, the heating, air conditioning, water heater, sewer, plumbing, electrical system, any appliances and the lawn in their present condition until date of closing, subject to the provisions of paragraph 12 of this Agreement. Seller agrees to install and maintain smoke detectors as required by law. If the Property is in Lancaster County and has a private water and/or wastewater system, Seller agrees, at Seller's cost, to obtain a Property Transfer Determination Letter from the Lincoln-Lancaster County Health Department approving such systems as required by law.

8. Termite Inspection. Buyer requests a termite and wood destroying insect inspection of the Property at Buyer's expense (except should Buyer obtain a VA loan, the expense shall be paid by Seller). Should evidence of termites or wood destroying insects be found, the Property shall be treated at Seller's expense by a commercially licensed applicator who has met the certification requirement of the Nebraska Pesticide Act for treatment of termites and wood destroying insects. Buyer agrees to accept the treated Property. If visible evidence of previously treated infestation which is now inactive is found, treatment shall not be required. Should damage from such insects be found, the damage shall be corrected at Seller's expense. However, if the cost required for repairs exceeds 1 % of the purchase price, and Seller does not elect to pay the cost in excess of such amount, Buyer shall have the option of declaring this Agreement null and void and to the return of the earnest money.

Form 200, Page 2 of7 Approved 5/22/13 C Copyright Midlands MLS Jnc. 2012

9. Inspections. The following provisions shall apply to inspections of the real and personal property, with the exception of matters pertaining to lead-based paint if this is a residential dwelling built prior to 1978 and termite inspections which are controlled by paragraph 8 of this Agreement.

(a) Buyer, at Buyer's expense, shall have the right to perform any inspections of the real and personal property identified in this Purchase Agreement that Buyer desires. If the condition of the real or personal property is unsatisfactory in Buyer's subjective discretion, Buyer shall provide Seller with:

(1) An Inspection Notice Addendum that sets out in writing any unsatisfactory physical items Buyer requests Seller to correct; or

(2) A Rejection Notice Addendum that notifies Seller that after inspection, Buyer finds the real or personal property to be in unsatisfactory condition (a rejection of the property).

(b) To be effective, the Inspection Notice Addendum or Rejection Notice Addendum must be received by Seller or Seller's Authorized Recipient no later than 5:00 p.m. C.T. on the 12th calendar day after the acceptance date ("Inspection Objection Deadline").

( c) If an Inspection Notice Addendum or Rejection Notice Addendum is not received by Seller or Seller's Authorized Recipient by 5 :00 p.m. C. T. on the 12th calendar day after the acceptance date ("Inspection Objection Deadline"), the real and the personal property identified in this Purchase Agreement shall be deemed to be satisfactory to Buyer.

( d) If a Rejection Notice Addendum is received by Seller or Seller's Authorized Recipient by the Inspection Objection Deadline this Purchase Agreement shall automatically terminate.

(e) If an Inspection Notice Addendum containing requests for action by Seller is received by Seller or Seller's Authorized Recipient by the Inspection Objection Deadline and Buyer and Seller have not agreed in writing as to what action is to be taken regarding the items by 5 :00 p.m. C. T. on the 18th calendar day after the acceptance date of the Purchase Agreement ("Resolution Deadline"), this Agreement shall automatically terminate on the Resolution Deadline unless, before such termination, Buyer's written notice of withdrawal of the requirement that Seller correct the items contained in the Inspection Notice Addendum is received by Seller or Seller's Authorized Recipient.

Upon termination of this Purchase Agreement under this paragraph 9, the earnest money, less amounts necessary to pay any expenses incurred by Realtor® or escrow agent holding the earnest money, shall be refunded to Buyer promptly, upon Buyer providing written notification of the facts constituting termination to the party holding the earnest money, without further documentation being required.

Buyer does not, by acceptance of the real and personal property identified in this Purchase Agreement, waive, release or relinquish any right or claim Buyer may have against Seller by reason of any misrepresentation, concealment or fraud. Buyer shall be responsible for payment of all inspections, surveys, engineering reports or for additional work performed at Buyer's request and shall pay for any damage which occurs to the real and personal property as a result of such activities. The provisions of this paragraph shall survive termination of the Purchase Agreement.

10. Condition of Property. This Agreement is based upon Buyer's personal inspection or investigation of Property and not upon any representation or warranties of condition by any agent involved in this transaction. Buyer agrees to accept Property in its present condition, except as provided in this Agreement. Seller represents that to the best of Seller's knowledge, there are no defects in the Property that (1) are not reasonably ascertainable and which significantly affect the desirability or value of the Property, or (2) are not set forth within the Seller Property Condition Disclosure Statement, or (3) which the Seller has not disclosed to Seller's Agent in writing. Buyer acknowledges receipt of the Seller Property Condition Disclosure Statement dated (Buyer should initial if applicable).

11. Home Warranty. Understanding the benefits of a home warranty, as provided by the terms of the warranty contract (Buyer to initial one of the following):

__ ! __ Buyer requests that a home warranty be provided. The cost, not to exceed $ _______ shall be paid as follows: __ _

__ ! __ Buyer declines home warranty coverage.

__ ! __ Buyer understands that warranty coverage is not available for this Property.

12. Responsibility of Insurance & Risk of Loss: Seller shall insure the property for fire, wind, hail, explosion, water or any other cause at no less than purchase price until closing. Risk ofloss or damage to Property, prior to closing, shall be the responsibility of Seller. If, prior

to closing, the structure on the Property is materially damaged; Seller shall immediately notify the Buyer in writing of the damage. Buyer, at Buyer's choice, may: 1) Rescind this agreement OR 2) Take the property subject to the damage with the Seller paying to the Buyer the insurance proceeds and deductible for the restoration of the property or at a price discounted by the cost of restoration of the premises.

13. Real Estate Taxes, Prorations. Taxes for prior year shall be paid by Seller. Current year taxes together with interest, rents and homeowners association dues, if any, shall be prorated to the date of possession. Taxes shall be prorated on the basis of the most recent assessed valuation and the most recent tax levy available from the appropriate governing body at the time of closing. The most recent assessed valuation shall be the prior year's valuation until a new valuation, including a preliminary valuation, is published by the county assessor.

Form 200, Page 3 of7 Approved 5/22/13 © Copyright Midlands MLS Inc. 2012

14. Possession and Closing. Closing of the sale shall be on (Closing Date), or within ___ days after loan

approval, whichever last occurs, unless the contract is terminated under paragraph 4(a). Possession of Property shall be given on ______________ (Date) but not before closing. This Agreement shall in no manner be construed to convey Property or to give

any right of possession. Buyer shall have the right to make a final inspection of Property prior to closing to ascertain that all conditions of this Agreement have been met.

15. Escrow Closing. Buyer and Seller agree that the closing of the sale may be handled by an escrow agent. If so, any broker holding the earnest money or other trust funds is authorized to transfer such items to the escrow agent. All documents and other items received by any broker in connection with the sale shall also be transferred to the escrow agent. After the transfer, a broker shall have no further responsibility or liability to Buyer or Seller to account for funds or preparation of documents in connection with the closing of the sale. Escrow agent will not be required to disburse funds or deliver or record any documents until it has received certified funds or other good, sufficient and collected funds, and all conditions, terms and provisions of this Agreement have been satisfied, performed and met. Closing charges shall be paid as follows:

----------------------------· IfBuyer's loan is a government-regulated loan which prohibits Buyer from paying such charges, they shall be paid by Seller.

16. Compensation. Buyer agrees to pay selling broker compensation of$ at closing. The compensation will be collected in all cases except (a) if Buyer secures a loan to purchase the Property that does not allow Buyer to pay such compensation or (b) buyer has previously agreed to pay selling broker fixed compensation pursuant to and as defined in the provisions of paragraph 3 of the Realtors® Association of Lincoln's Exclusive Buyer Agency Agreement entered into with selling broker. If this compensation is paid by Buyer to selling broker, Seller and Buyer agree that selling broker, which may be the same as the listing broker, may collect compensation from both Seller and Buyer.

17. Do Not Call Provision. Seller and Buyer authorize telephone, facsimile and other electronic means of contact by individuals on behalf of the Listing Company and the selling company, if different, as well as other service providers involved in the transaction.

18. Default. IfBuyer fails to consummate this purchase according to the terms of this Agreement, Seller may, at Seller's option, retain the earnest money as liquidated damages for such failure, or utilize such other legal remedies as are available to Seller by reason of such failure. In the case of a dispute over the return or forfeiture of earnest money, the holder of the earnest money may require the agreement of Seller and Buyer to release

the funds.

19. Notices. Any notice required to be given to a party to this Purchase Agreement by the terms of this Purchase Agreement or any of its addend urns, shall not be complete until received and shall be considered to have been received when the notice has been delivered as set forth in this paragraph. A notice shall be considered for all purposes to have been delivered to the party required to be given notice when the written notice is delivered to the party, the party's agent, the broker of the party's agent, or any real estate licensee associated with the office of the party's agent ("Authorized Recipient"). Fax delivery may be shown by written acknowledgment from an authorized recipient that a notice was received prior to the deadline for giving the notice. E-mail delivery is complete if the Authorized Recipient affirmatively acknowledges the e-mail was received before the deadline for receiving a notice.

20. Transmittal Authorization. The undersigned agree that all documents bearing signatures, initials or other marks of acknowledgment by a Buyer, Seller and/or Broker/agent relating to the real estate transaction contemplated under this Agreement, including offers, counteroffers and acceptances: (1) may be transmitted electronically, and/or may use digital signature technology which is compliant with state UETA and/or federal E-SIGN requirements and (2) that digital signatures as well as electronic copies of manual signatures, whether scanned, digital photograph, facsimile or other means of image reproduction shall be treated in all respects as originals, and (3) that, if requested, the undersigned will submit an original, or copy thereof, to their agents. This Agreement and any addendums or modifications may be signed in counterparts and such counterparts shall by considered as one document.

21. Acceptance Date. This offer is null and void if not accepted by Seller on or before--------------- (Date) at _____ o'clock _m. Buyer acknowledges receipt of a copy of this Agreement, which has not yet been signed by Seller.

22. Mediation and Arbitration

(a) Disputes. The term "Dispute" shall include, without limitation, any controversy, complaint, dispute, claim or disagreement relating to or arising out of the brokerage relationship or the construction, interpretation, enforcement, or breach of the terms of this Agreement.

(b) Mediation. In the event of any Dispute, any party to the Dispute may seek non-binding mediation in an attempt to resolve the Dispute by giving 15 days written notice of a request for such mediation to all other parties to the Dispute. The request for mediation must be made within 360 days after the party making the request knew, or exercising reasonable diligence and care, should have known, of the Dispute. In no case shall such request be made after the statute of limitations on a civil suit based on the Dispute would have run. Such mediation shall be held in Lincoln, Nebraska. Such mediation may be administered by the American Arbitration Association and shall be conducted according to the American Arbitration Association's Commercial Rules-Real Estate Industry Arbitration Rules (Including a Mediation Alternative) or such other mediation service versed in real estate practices of the locality.

( c) Arbitration. Any Dispute that is not resolved by informal settlement or mediation shall be resolved exclusively by binding arbitration. Such arbitration shall be held in Lincoln, Nebraska. Such arbitration shall be administered by the American Arbitration Association and shall be conducted according to the American Arbitration Association's Commercial Rules-Real Estate Industry Arbitration Rules (Including a Mediation Alternative). The arbiter(s) shall apply Nebraska substantive and procedural law to the arbitration proceeding. Arbitration shall be commenced by written demand made by any one or more of the parties to the Dispute given to all other parties to the Dispute. The demand

Form 200, Page 4 of7 Approved 5/22/13 ©Copyright Midlands MLS Inc. 2012

Date:

Seller's Initial

for arbitration must be in writing and must be given by personal delivery or certified mail, return receipt requested, within 360 days after the party making the demand knew, or exercising reasonable diligence and care, should have known, of the Dispute. Notwithstanding the previous sentence, in the case that the parties unsuccessfully attempt mediation to resolve a Dispute, the demand for arbitration shall be made within 60 days of the final mediation session. However, in no case shall such demand be made after the statute of limitations on a civil suit based on the Dispute would have run. The prevailing party shall be entitled to costs and fees of the arbitration and, in the discretion of the arbitrator who shall take into account the relative merits of the opponent's case, the arbiter may award attorneys fees to the prevailing party.

( d) Provisional Remedies. The filing of a judicial action to enable the reporting of a notice of pending action, for order of attachment, receivership, injunction, or other like provisional remedies, shall not constitute a waiver of mediation or arbitration under this provision, nor shall it constitute a breach of the duty to arbitrate.

(e) Exclusions. The terms of this paragraph 22 shall not apply to:

(1) Any complaint of violation of the Code of Ethics of the National Association of REALTORS®;

(2) Foreclosure or other action or proceeding to enforce a deed of trust, mortgage or land contract; or

(3) The filing or enforcement of a construction or similar lien.

(4) An action filed and held in "Small Claims Court" as defined in Neb. Rev. Stat. §25-2801 to §25-2804, provided, however, any attempt to transfer a matter filed in small claims court to county court shall be subject to paragraph 22.

(t) Waiver. BYSIGNINGTHISPURCHASEAGREEMENT, THEPARTIESAGREETHATEVERYDISPUTEDESCRIBEDABOVETHAT IS NOT RESOLVED BYINFORMALSETTLEMENTORMEDIATIONWILLBE DECIDED EXCLUSIVELY BY ARBITRATION AND THAT ANY ARBITRATION DECISION WILL BE FINAL AND BINDING. THE PARTIES AGREE THAT THEY WILL RECEIVE ALL THE RIGHTS AND BENEFITS OF ARBITRATION, BUT ARE GIVING UP RIGHTS THEY MIGHT HA VE TO LffiGATE THOSE CLAIMS AND DISPUTES IN A COURT OR JURY TRIAL, OR TOP ARTICIP ATE AS A REPRESENTATIVE OR MEMBER OF ANY CLASS OF CLAIMANTS IN CONNECTION WITH ANY SUCH DISPUTES. NO PARTY TO THIS AGREEMENT, WHETHER REALTOR® OR SELLER, SHALL BE ENTITLED TO JOIN OR CONSOLIDATE DISPUTES BY OR AGAINST OTHERS IN ANY ARBITRATION, OR TO INCLUDE IN ANY ARBITRATION ANY DISPUTE AS A REPRESENTATIVE OR MEMBER OF A CLASS, OR TO ACT IN ANY ARBITRATION IN THE INTEREST OF THE GENERAL PUBLIC ORIN ANYPRIV ATE ATTORNEY GENERAL CAPACITY.

TIDS CONTRACT CONTAINS AN ARBITRATION PROVISION WHICH MAY BE ENFORCED BY THE PARTIES

Buyer's Printed Name Buyer's Signature Date

Buyer's Printed Name Buyer's Signature Date

Buyer's Current Street Address City State Zip Buyer's Phone

Selling Agent's Printed Name Selling Company Selling Agent's Phone

Listing Agent's Printed Name Listing Company

RECEIPT FOR EARNEST MONEY

to apply to the purchase price of Property on terms and conditions as stated. If this offer is not accepted by the Seller within the time specified, or if there are any defects in the title which cannot be cured as specified above, the Deposit shall be refunded.

Form 200, Page 5 of 7 Approved 5/22/13 ()Copyright Midlands MLS Inc. 2012

Date:

S..,ller's Initials

Date:

Buver' s Initials

Complete only one of A or B below:

A: ACCEPTANCE OF ALL TERMS

Seller accepts all of the terms of the above agreement and agrees to perform all of its terms.

THIS CONTRACT CONTAINS AN ARIBTRATION PROVISION WHICH MAY BE ENFORCED BY THE PARTIES

Seller ___ ~-------------------- Date---------------------

Seller ________________________ Date---------------------

Phone ____________________ _ Fax ________________________ _

B: COUNTER OFFER BY SELLER

In response to the above Purchase Agreement dated for the sale of the Property, all of the terms and conditions of the Purchase Agreement are accepted and shall remain the same with the exception of the following:

This Counter Offer shall expire (Date), at (hour) and be automatically null and void unless, prior to the time of expiration, Buyer's written acceptance is delivered to Seller or Seller's Authorized Recipient.

If this Counter Offer is so delivered, the Purchase Agreement as amended by this Counter Offer shall become a contract between the parties.

Seller reserves the right to withdraw this Counter Offer prior to acceptance. Withdrawal shall be complete if verbal notification of withdrawal is made to Buyer or Buyer's Authorized Recipient before the delivery of Buyer's written acceptance to Seller or Seller's Authorized Recipient.

THIS CONTRACT CONTAINS AN ARBITRATION PROVISION WHICH MAY BE ENFORCED BY THE PARTIES

Seller Date Seller

The foregoing Counter Offer is accepted ____________ (Date), at _______ (hour).

Buyer

Form 200, Page 6 of7 Approved 5/22/13 ©Copyright Midlands MLS Inc. 2012

Buyer

Date:

s 11 , s Initial

Date

IB REALTOR"

THIS IS A LEGALLY BINDING AGREEMENT, IF NOT UNDERSTOOD, SEEK LEGAL ADVICE

ADDENDUM TO PURCHASE AGREEMENT INSPECTION NOTICE

Addendum# for exclusive use by members of the

REALTORS® ASSOCIATION OF LINCOLN 217

Buyer named in a certain Purchase Agreement dated -------- -------------

EOUALHOUSING OPPORTUNITY

for the sale of: Address: _________________________________________ (Property)

Legal Description:------------------------------------------­gives Seller notice as follows:

BUYER'S INSPECTION NOTICE - NO ACTION REQUIRED OF SELLER: (To be delivered to Seller or Seller's Authorized Recipient by the Inspection Objection Deadline.) (Initial one)

__ No inspections are required by Buyer.

After inspection, Buyer does not require Seller to take any action.

This Buyer's Inspection Notice shall not modify the provisions of Paragraph 8 of the Purchase Agreement in any manner.

Buyer Date/Time Buyer Date/Time

Acknowledgment of Seller: Seller or Seller's Authorized Recipient acknowledges receipt of Buyer's Inspection Notice at m. on , 20_ by (initial one) __ facsimile; __ e-mail; or __ hard copy.

Seller or Seller's Authorized Recipient Seller or Seller's Authorized Recipient

FORM IS COMPLETE IF SIGNED BY BUYER AND SELLER OR AUTHORIZED RECIPIENT ABOVE

BUYER'S INSPECTION NOTICE - WITH ACTION REQUESTED OF SELLER: (To be delivered to Seller or Seller's Authorized Recipient by the Inspection Objection Deadline set forth in the Purchase Agreement or Property is deemed satisfactory to Buyer.)

Buyer, after inspection of the real and personal property identified in the Purchase Agreement, finds certain conditions cifthe real and personal property to be unsatisfactory and requests that Seller take the following actions: ---------------

Buyer Date/Time Buyer Date/Time Acknowledgment of Seller: Seller or Seller's Authorized Recipient acknowledges receipt of Buyer's Inspection Notice at ____ m. on , 20_ by (initial one) __ facsimile; __ e-mail; or __ hard copy.

Seller or Seller's Authorized Recipient Seller or Seller's Authorized Recipient

SELLER'S RESPONSE TO BUYER -ACCEPTANCE: (To be delivered to Buyer or Buyer's Authorized Recipient by the Resolution Deadline or the Purchase Agreement automatically terminates.) (Initial)

__ Seller responds to Buyer's Inspection Notice by accepting Buyer's requests.

Seller Date/Time Seller Date/Time Acknowledgment of Buyer: Buyer or Buyer's Authorized Recipient acknowledges receipt of Seller's Response at ___ m. on ---------' 20_ by (initial one) __ facsimile; __ e-mail; or __ hard copy.

Buyer or Buyer's Authorized Recipient Buyer or Buyer's Authorized Recipient

FORM IS COMPLETE IF SIGNED BY SELLER AND BUYER OR AUTHORIZED RECIPIENT ABOVE

Form217,Page 1 of __ (Approved 5/30/07) © Copyright Midlands MLS Inc. 2007

Addendum#

INSPECTION NOTICE CONTINUATION for exclusive use by members of the

REALTORS® ASSOCIATION OF LINCOLN 217

SELLER'S RESPONSE TO BUYER - OTHER: (To be delivered to Buyer or Buyer's Authorized Recipient by the Resolution Deadline or the Purchase Agreement automatically terminates) (Initial one)

Counters the Buyer's requests as follows:

___ Rejects the Buyer's requests.

Seller Date/Time Seller Date/Time

Acknowledgment of Buyer: Buyer or Buyer's Authorized Recipient acknowledges receipt of Seller's Response at ___ m. on -------' 20 __ by (initial one) __ facsimile; __ e-mail; or __ hard copy.

Buyer or Buyer's Authorized Recipient Buyer or Buyer's Authorized Recipient

FORM IS COMPLETE IF SELLER REJECTED AND BUYER IS NOT WITHDRAWING INSPECTION REQUEST

BUYER'S RESPONSE TO SELLER: (To be delivered to Seller or Seller's Authorized Recipient by the Resolution Deadline.)

Buyer responds to Seller as follows: (Initial one)

Buyer

Buyer accepts Seller's Counter. This transaction shall now move forward to closing.

Buyer withdraws Buyer's request set forth above that Seller take certain action as set forth above, and does not require Seller to take any further action. This transaction shall now move forward to closing.

Buyer rejects Seller's Counter. Purchase Agreement will become void on the Resolution Deadline unless, prior thereto, written resolution occurs or Buyer withdraws request for Seller action.

Date/Time Buyer Date/Time

Acknowledgment of Seller: Seller or Seller's Authorized Recipient acknowledges receipt of Buyer's Response at ___ m. on ---------' 20_ by (initial one) __ facsimile; __ e-mail; or ___ hard copy.

Seller or Seller's Authorized Recipient

Form 217, Page 2 of2 (Approved 5/30/07) © Copyright Midlands MLS Inc. 2007

Seller or Seller's Authorized Recipient

ACKNOWLEDGMENT

The foregoing Acceptance of All Terms or Counter Offer, whichever was signed by the Seller, was acknowledged before me on ___________ __,by ________ ~

Notary Public

Commission expires---------------(seal)

) SS.

The foregoing Acceptance of All Terms or Counter Offer, whichever was signed by the Seller, was acknowledged before me on ______________ ,by _______ _

Notary Public

Commission expires---------------(seal)

RECEIPTS FOR FULLY EXECUTED PURCHASE AGREEMENT

Buyer acknowledges receipt of executed copy of this agreement.

Buyer _______________________ _

Buyer _______________________ _

Seller acknowledges receipt of executed copy of this agreement.

Seller _______________________ _

Seller _______________________ _

Form 200, Page 7 of7 Approved 5/22/13 IC Copyright Midlands MLS Inc. 2012

Date __________________ _

Date -------------------

Date ------------------~

Date------------------~

IB RE ALTO Re

OMAHA AREA BOARD OF REALTORS® UNIFORM PURCHASE AGREEMENT

(This is a legally binding contract. If not Wlderstood, seek legal advice.) (5)

EQUAL HOUSING OPPORTUNITY

The REALTOR® negotiating this agreement is a member of the Omaha Area Board of REALTORS® and as such is governed by its Code of Ethics and Rules of Fair Business Practice.

The undersigned Purchaser, (whether one or more) agrees to purchase the Property described as follows:

1. Property Address: __________________________ Zip Code ______ _

2. Legal Description (Property): as surveyed, platted and recorded in---------- County, NE, including all fixtures and equipment permanently attached to the Property.

3. Personal Property: The only personal property included is as follows: Orange Ooven Drefrigerator Omicrowave 0dishwasher Dall window coverings Dall ceiling fans Owasher 0dryer Ogarage door opener(s) with remotes Doutdoor play equipment Dstorage shed Owork bench and/or shelving located in other (list in space)

together with any other property which is permanently afftxed to the Property.

4. Conveyance: Provided that the Seller (whether one or more) has good, valid and marketable title, in fee simple, Seller agrees to convey title to Property to Purchaser or his nominee by form of warranty deed or free and clear of all liens, encumbrances or special taxes levied or assessed, Ono exceptions Oexcept and subject to all building and use restrictions, utility easements abutting the boundary of the Property, and protective covenants now ofrecord.

5. Assessments: Seller agrees to pay any assessments for paving, curb, sidewalk or utilities previously constructed, now under construction, or ordered or required to be constructed by any public authority, but not yet assessed. Upon notification, Seller agrees to notify Purchaser of any additional assessments ordered but not yet assessed.

6. Consideration: Purchaser agrees to pay to Seller, via certified funds, the total purchase price in the amount of _________________________ DOLLARS($ on

the following terms: $ (Deposit) deposited herewith as evidenced by the receipt attached below. Deposit is made payable and delivered to 0Escrow Agent 0Broker 0Seller. If the Deposit is paid by check, it will be cashed following acceptance of this Agreement or as otherwise agreed herein. In the event this offer is not accepted by the Seller of the Property within the time specified, the Deposit shall be returned to Purchaser. In the event there are any defects in the title which cannot be cured as specified below, the Deposit shall be paid to Purchaser. In the event of wrongful refusal or failure of the Purchaser to consummate the purchase, the Seller may, at his option, retain the Deposit for failure to carry out the terms of this Purchase Agreement, subject to the terms of the listing agreement. In the event of a dispute over the return or release of the Deposit, Purchaser(s) and Seller(s) understand that the Broker or Escrow Agent will not release funds to either party without the signed written consent of Seller(s) and Purchaser(s) or a court order or arbitration ruling. Broker shall pay any Deposit into court which it may have in its possession upon the filing of such legal action. Such legal action shall not be maintained against Broker when the dispute is between Purchaser and Seller. Any party naming Broker as a party to any proceeding despite the aforementioned sentences shall be liable to Broker for all legal costs and fees.

7. D All Cash: Balance of$ ---------------- shall be paid in wire transferred funds, or certified or cashier's check at time of delivery of deed, no financing being required.

8. D Conditional Upon Financing: This Agreement shall be conditional upon Purchaser obtaining financing, under the terms set forth below:

8.1 Terms of Financing. Balance of $ shall be paid in wire transferred funds, or by certified or cashier's check at time of delivery of deed, conditioned upon Purchaser's ability to obtain financing to be secured by first mortgage or deed of trust, on above described Property in the amount of$ The financing will be OVA, 0FHA, 0CONVENTIONAL, 0CONVENTIONAL with P.M.I., 0NIFA, 0USDA or D

·------------~ with terms providing initial monthly principal and interest payment of not more than $ plus taxes and insurance, and for an initial interest rate not exceeding % per annum, plus mortgage insurance. The note will be for a period of not less than years. Loan origination/service fee to be paid by Purchaser except as otherwise agreed herein.

Cl 2015 Omaha Area Board ofREALTORS®, Inc. Page 1 oflO 1120/2015 Form 200

Purchaser(s) Initials: Seller(s) Initials:

Purchase Agreement - Cont. ' '

8.2 Purchaser Loan Application Requirements: Purchaser agrees to make application for financing within five (5) business days of acceptance of this offer to:

D Company Name Loan Officer Name Phone Number

D Company Name Loan Officer Name Phone Number

to sign all papers and pay all costs in connection therewith, and to establish escrow reserves as required. If the financing is not approved within __ days from date of acceptance, this offer shall be null and void, and the Deposit will be paid to Purchaser with no further agreement or release required, except that, if processing of the application for financing has not been completed by the lending agency within the above time, such time limit shall be automatically extended until the lending agency has, in the normal course of its business, advised either approval or denial. If the original loan application is denied, the Purchaser authorizes and instructs the Lender to notify the Purchaser, the Seller and all real estate licensees involved in the transaction, in writing. Upon notification of denial, this Purchase Agreement shall be void and the Deposit will be paid to Purchaser, with no further agreement or release required, unless Seller and Purchaser mutually agree in writing within five ( 5) business days from receipt of notification of loan denial that an additional loan application will be made or that, without waiving such contingency, additional loan information will be submitted to the original Lender or Purchaser waives the financing condition. Notwithstanding the foregoing, if approval or denial is not issued within ten (10) days after the approximate closing date, below, this Agreement shall be voidable by Seller upon written notice to Purchaser.

9. D A. Seller Financing: - See attached addendum D B. Loan Assumption: - See attached addendum.

10. ADDITIONAL PROVISIONS: (Check all that apply):

D A. Contingent Upon Sale and Closing: This offer is contingent upon the sale and closing of Purchaser's property located at: __________________________________ -See attached addendum.

D B. Contingent Upon Closing: This offer is contingent upon Purchaser first obtaining the proceeds from the closing of the Purchaser's property located at scheduled to close on approximately . If such closing does not occur within ten (10) business days after the approximate closing date, below, this offer shall be voidable by Seller upon written notice to Purchaser.

DC. Other Provisions (ifattaching addenda, list in Section 37):

11. Taxes: If the Property is located in Douglas or Sarpy County, all consolidated real estate taxes which become delinquent in the year in which closing takes place shall be treated as though all are Current Taxes for the purposes of this Agreement. If the Property is located in any other county, all consolidated real estate taxes for the year in which closing takes place (based on assessed value and tax rate as of the date of this Agreement) shall be treated as Current Taxes for the purposes ofthis Agreement. Such Current Taxes shall be prorated as of date of Opossession or Oclosing.

12. Rents, Deposits and Leases, If Rented: All leases and rents shall be current and not in default at closing. Any tenant deposits and leases shall be assigned to Purchaser at no cost. All rents shall be prorated to date of closing. Copies of all current leases shall be provided to the Purchaser within ten (10) days of acceptance of this Agreement. In the event that any condition of an existing lease is unacceptable to Purchaser, Purchaser may terminate this Agreement by written notice to Seller within ten (10) days of Purchaser's receipt of the copies of leases, and Purchaser shall be entitled to be paid the Deposit with no further agreement or release required.

13. Sanitary and Improvement District (S.I.D.): Purchaser understands that this property is located within S.I.D. # _____ .If the Property is located within an SID, Purchaser acknowledges receipt of the most recently filed S.I.D. Statement.

© 2015 Omaha Area Board of REALTORS®, Inc. Page 2 oflO 1/20/2015 Form 200

Purchaser( s) Initials: Seller(s) Initials:

Purchase Agreement - Cont.

14. Conveyance of Title: Seller shall through Seller's Agent or closing agent furnish a current title insurance commitment or complete abstract of title to Purchaser as soon as practical. If title defects are found, Seller must cure them within a reasonable time. Notwithstanding the foregoing, if title defects are not cured within fourteen (14) days after the approximate closing date, below, this Agreement shall be voidable by Seller upon written notice to Purchaser.

Approximate closing date to be --------------------~ 20 ____J and possession date shall be D closing,

orD _____________________ ,,20----Jat ___ o'clock M.

The Real Estate Settlement Procedures Act ("RESP A") and its accompanying regulations make it clear that if the Purchaser pays any part of the title insurance policy, the Seller cannot make the sale conditioned on the use of a particular title insurance company. According to the Purchasers rights under RESP A, Purchaser hereby directs the title insurance work to D --------------~ orD --------------Purchaser hereby selects the expanded AL TA Homeowners Policy of Title or D --------------------

The cost of any title insurance policies and endorsements shall be equally divided between Purchaser and Seller.

15. Escrow Closing: Purchaser and Seller acknowledge and understand that the closing of the sale may be handled by an Escrow Agent and that the Broker is authorized to transfer the Deposit or any other funds it receives to said Escrow Agent. After said transfer, Broker shall have no :further responsibility or liability to Purchaser or Seller for the accounting for said funds. Escrow Agent's or the Broker's charge for the escrow closing shall be equally divided between Purchaser and Seller unless Purchaser is obtaining a VA loan, in which case escrow costs of the closing shall be paid by Seller. Escrow Agent shall be D or D . If no Escrow Agent is selected, the title insurance agent, above, shall be the Escrow Agent. At closing Purchaser is required to have wire transferred funds or certified or cashier's check for the balance of amounts due.

16. Utilities: Purchaser agrees to have all utilities transferred from Seller's name to Purchaser(s) name, as of the date of closing or possession, whichever is earlier.

17. Homeowners Association and Protective Covenants: Purchaser acknowledges that the Property may be subject to protective covenants that govern Purchaser's use of the Property, and that may be enforced by the homeowner's association or its members. Purchaser can obtain a copy of the protective covenants from the designated title insurance company. Seller shall pay all homeowner's and neighborhood association assessments levied and due as of closing. Homeowner's or neighborhood association dues shall be prorated to the date of closing. Purchaser shall be responsible for all future homeowner's or neighborhood association dues, if any.

18. State Documentary Tax: The State Documentary Tax on the deed shall be paid by the Seller.

19. Affiliated Business Arrangements: Purchaser and Seller acknowledge and understand that real estate licensees involved in this transaction may receive financial remuneration from the sale of title insurance or other forms of insurance or service as defined in the attached Affiliated Business Arrangement Disclosure. Purchaser and Seller acknowledge receipt of the Affiliated Business Arrangement Disclosure provided herewith.

20. Release of Information: Purchaser and Seller authorize the release by Broker and/or its agents of information including price, financing and Property information regarding the purchase of this Property to the Great Plains Multiple Listing Service of the Omaha Area Board of REALTORS® Inc., its participants and government entities. Purchaser authorizes selling agent/broker to market the fact of the sale of this Property and related information including, but not limited to, the purchase price.

21. Survey: Purchaser is aware of the availability of having a survey to determine the property limits, measurements, building locations, encroachments from adjoining lands, and registered Easements which may affect the property. Purchaser agrees to pay for (select one):

D Improvement Location Survey I Plot Plan (minimum survey; or relied upon for establishment of structure or other improvements), D Boundary and Improvement Location Survey (corners located/verified; improvements located; parcel checked for encroachments, may be used for construction with regard to local, state and federal regulations), D ALTA (American Land Title Association) Survey (most comprehensive survey, covers all aspects of above survey options and identifies any additional evidence of possession or use which could be adverse to Purchaser), D Waived unless required by a lender In most situations, even if a survey is not required, one of the surveys is recommended.

IC 2015 Omaha Area Board of REALTORS®, Inc. Page 3 oflO 112012015 Form 200

Purchaser(s) Initials: Seller( s) Initials:

Purchase Agreement - Cont.

22. Seller Property Condition Disclosure: Purchaser acknowledges receipt of Seller Property Condition Disclosure Statement.

23. Home Warranty Acknowledgment: Purchaser has been advised of the availability of Home Warranty.

D Purchaser shall receive a home warranty, provided at the expense of D Purchaser D Seller. Home Warranty provider shall be

D ,mD --------------~

Purchaser selects the warranty type D Non-Evaluated Warranty D Evaluated Warranty with No Exclusions*. Cost is$ -------

*(Seller is responsible to ensure issuance of warranty with no exclusions under this option.)

D Home warranty coverage rejected by Purchaser.

24. Property Inspections (Select as noted): Purchaser has been advised of the availability of property inspections. Unsatisfactory Home Condition, Asbestos, Mold, Lead and other contaminants may exist in the Property of which the Broker or Agent is unaware. Suspected Contaminants and home condition may be identified with a typical air quality or home inspection(s). Broker recommends Purchaser obtain inspection(s) of Purchaser's choice to better determine the presence of contaminants and home condition.

D Purchaser identifies the following inspections, as selected, which may be ordered:

D Whole House Inspection*or components or subsystems D Structural 0Mold 0 Septic System Owen 0 Lead Based Paint 0Radon 0 Other

--------------------~

*''Whole house" inspections often include, but are not necessarily limited to, structure, exterior, roofing, plumbing, electrical, heating, central air conditioning, interior, insulation and ventilation. In some instances it may be advisable to consult a structural engineer as part of the inspections to the Property. Occasionally, whole house inspectors may use or recommend other inspectors in the course of a whole house inspection and they will be considered as part of the whole house inspection for notification purposes.

D Purchaser elects NOT to obtain property inspections.

If Purchaser has elected to obtain property inspections. then the following provisions shall apply:

Within seven (7) days (or after the final acceptance of this Purchase Agreement, Purchaser, at Purchaser's expense, shall have the right to have a "qualified" inspector or inspectors perform any and all inspections of the real property as identified above, to determine whether the Property is satisfactory to Purchaser. To be "qualified" an inspector must be licensed, if required, in the state, county or city in which the Property is located. In any case, the inspections performed with regard to the Property under this Agreement must be in the ordinary course of the inspector's business. The inspection report may or may not cover items required by the appraisal. Seller will allow inspectors reasonable access to the property within the specified timeframe.

If Purchaser chooses to have a radon inspection, and the results of the Radon test show average radon levels of 4 picocuries per liter (pCi/L) or higher, Seller will have a licensed radon mitigation company professionally install a mitigation system and will either provide after­installation test results of below 4. 0 picocuries per liter of radon, or a guarantee from the radon mitigation company that the level of radon will be below 4.0 picocuries, with a transfer of the warranty to Purchaser. A copy of the paid receipt and either test results or guarantee will be provided to Purchaser prior to closing. Should Seller successfully complete mitigation under this Paragraph, Purchaser agrees to accept the Property in its mitigated condition.

Purchaser's Response to Inspection Reports: Within forty-eight hours (or of Purchaser's receipt of all requested inspection reports, the Purchaser shall notify Seller of Purchaser's requested course of action, which may be delineated on a property inspection resolution addendum and Purchaser shall also provide Seller with relevant pages of the inspection report(s). Purchaser's course of action shall be set forth as one of the three following options:

© 2015 Omaha Area Board of REALTORS® Page 4 oflO 1/20/2015 Form 200

Purchaser( s) Initials: Seller(s) Initials:

' Purchase Agreement - Cont.

Option "A" - After receipt of Inspections, the Purchaser(s) may choose not to request any action of Seller and to waive further objection regarding the home inspection findings.

Option "B" - If the report(s) reveal(s) any condition, issue or defect that is unsatisfactory to Purchaser, the Purchaser may deliver a written request for repair and or remediation, as required, to the Seller. Such request shall include a copy of the relevant inspection report or summary from the qualified inspector.

Option "C" - If the condition of the Property, as shown in any inspection or report, is unsatisfactory to Purchaser(s), then the Purchaser may terminate the Purchase Agreement with written notice to the Seller, at which time Purchaser shall be paid the Deposit with no further agreement or release required. Upon Seller's request, Purchaser agrees to provide a copy of the relevant inspection report or summary from the qualified inspector.

Purchaser's failure to deliver the report and written notification or request within the specified time period will result in Purchaser's acceptance of the Property "as is" and Purchaser shall be deemed to have waived any objection based on Property inspections under this section.

Seller's Response to Inspection Notice: Within forty-eight ( 48) hours (or of receipt of a property inspection removal addendum, Seller shall notify Purchaser, in writing of what steps, if any, the Seller will take to correct any identified condition, issue or defect before closing. The failure of Seller to deliver a response before the expiration of this time period shall be treated as a notification that Seller will not make any repairs.

If the Seller is unwilling or unable to remedy the identified conditions, issues or defects to the Purchaser's reasonable satisfaction, the Purchaser may elect to give written notice that Purchaser accepts the Property without any repairs or remediation to be done by Seller. If Purchaser does not elect to take the Property "As Is" within forty-eight ( 48) hours of the Seller' response (or the deadline for response, if no response was timely provided), the Purchase Agreement shall be automatically null and void, at which time Purchaser shall be paid the Deposit with no further agreement or release required.

25. Purchaser's Personal Inspection: This offer is based upon Purchaser's personal inspection or investigation of the property and not upon any representation or warranties of condition by Seller or any limited agents involved in this transaction. If finished sq.ft .. age. location of property lines. lot size. condition of improvements. protective covenants. desiwzated school or school district. or other specific requirements are important to Purchaser's decision to purchase. Purchaser acknowledges the limited agents have advised Purchaser to make or procure independent investigations.

26. Condition of Property: Seller represents to the best of Seller's knowledge, information and belief, there are no material, latent defects in the Property nor any conditions present or existing with respect to the Property which may give rise to or create Environmental Hazards or Liabilities and there are no enforcement actions pending or threatened with respect to the Property or any conditions present on it, except as have been disclosed in writing to Purchaser. Seller agrees to maintain the landscaping, sprinkler system, heating, air conditioning, water heater, sewer, plumbing, electrical systems and any built-in appliances in functional and operable condition until delivery of possession, unless otherwise noted in the Seller Property Condition Disclosure Statement or specified herein. Seller will allow Purchaser to walk through Property within hours before closing to confirm compliance with this Purchase Agreement.

27. Wood Infestation: Purchaser (Seller, in the case of a new VA loan) agrees to pay the cost of a wood destroying insect inspection of the Property, and Seller agrees to pay for any treatment or repair work found necessary for issuance of a wood destroying insects warranty. Purchaser agrees to designate the inspector for such inspection in writing to Seller's Agent within ten (10) days after acceptance of this offer. Purchaser agrees to accept the treated Property upon completion ofrepairs. Provided, however, if treatment and repairs exceed 02% or D of the purchase price, this Purchase Agreement may be cancelled by Seller and/or Purchaser, by written notice delivered to the other party within five (5) days of receipt of a wood destroying insect inspection report, which inspection report must be delivered to the Seller and Purchaser within ten (10) days after acceptance of this Purchase Agreement, at which time Purchaser shall be paid the Deposit with no further agreement or release required. Termite inspection work is to be performed by D ----------­or D

----------------~·

28. Insurance: Seller shall insure the property for fire, wind, hail, explosion, water or any other cause at no less than replacement cost until closing. Risk of loss or damage to Property, prior to closing, shall be the responsibility of Seller. If, prior to closing, the structure on the Property is materially damaged; Seller shall immediately notify the Purchaser in writing of the damage. Purchaser, at Purchaser's choice, may: 1) rescind this Agreement, at which time Purchaser shall be paid the Deposit with no further agreement or release required; or 2) take the Property subject to the damage, with the Seller paying to the Purchaser the insurance proceeds and deductible for the replacement of the Property or at a price discounted by the cost of restoration of the Property. Purchaser agrees to insure the Property at closing.

iCI 2015 Omaha Area Board of REALTORS® Page S of IO 1/20/2015 Form200

Purchaser(s) Initials: Seller(s) Initials:

Purchase Agreement - Cont.

29. Smoke Detector: Seller agrees to install, at Seller's expense, smoke detectors as required by law.

30. Compensation of Selling Broker: Purchaser shall pay Selling Broker compensation of $ at closing. The compensation will be collected in all cases except if Purchaser secures a loan that does not allow Purchaser to pay for such compensation. If this compensation is paid by Purchaser to Selling Broker, Seller and Purchaser agree that Selling Broker, which may be the same as the Listing Broker, or any cooperating broker may collect compensation from both Seller and Purchaser.

31. Lead-Based Paint Addendum: Was property built before 1978? 0Yes 0No. If yes, Purchaser and Seller must complete Disclosure oflnforrnation on Lead-Based Paint and/or Lead-Based Paint Hazards.

32. Equal Opportunity: It is unlawful to discriminate against any person in the terms, conditions or privileges of sale, purchase or lease of a dwelling or in the division of services or facilities in connection therewith because of race, color, religion, national origin, ethnic origin, familial status, sex, handicap, disability, or sexual orientation, or age in the City of Omaha ifan individual is forty (40) years of age or older.

33. Modification in Writing: Any modification of the terms of this agreement must be in writing and signed by all parties.

34. Electronic Transaction Authorization: The undersigned agree that all documents bearing signatures, initials or other marks of acknowledgement by a Purchaser, Seller and/or Broker/agent relating to a real estate transaction contemplated under this Agreement, including offers, counteroffers and acceptances: (1) may be transmitted electronically, and/or may use digital signature technology which is compliant with state VETA and/or federal E-SIGN requirements and (2) that digital signatures as well as electronic copies of manual signatures, whether scanned, digital photograph, facsimile or other means of image reproduction shall be treated in all respects as originals, and (3) that they will submit all original signatures if requested by the other party. This Agreement and any addendums or modifications may be signed in counterparts and such counterparts shall be considered as one document.

35. Arbitration and Mediation:

A. Disputes: The term ''Dispute" shall include, without limitation, any controversy, complaint, dispute, claim or disagreement relating to or arising out of the construction, interpretation, enforcement, or breach of the terms of this Purchase Agreement between Purchaser and Seller.

B. Mediation: In the event of any Dispute, any party to the Dispute may seek non-binding mediation in an attempt to resolve the dispute by giving fifteen ( 15) days written notice of a request for such mediation to all other parties to the Dispute. The request for mediation must be made within three hundred sixty five (365) days after the party making the request knew, or exercising reasonable diligence and care, should have known, of the Dispute. In no case shall such request be made after the statute of limitations on a civil suit based on the Dispute would have run. Such mediation shall be administered by the American Arbitration Association and shall be conducted according to the American Arbitration Association's Commercial Rules - Real Estate Industry Arbitration Rules (including a Mediation Alternative) or such other mediation service versed in real estate practices of the locality.

C. Arbitration: Any Dispute that is not resolved by informal settlement or mediation shall be resolved exclusively by binding arbitration. Such arbitration shall be administered by the American Arbitration Association and shall be conducted according to the American Arbitration Association's Commercial Rules - Real Estate Industry Arbitration Rules (Including a Mediation Alternative). The arbiter(s) shall apply Nebraska substantive and procedural law to the arbitration proceeding. Arbitration shall be commenced by written demand made by any one or more of the parties to the Dispute given to all other parties to the Dispute. The demand for arbitration must be in writing and must be given by personal delivery or certified mail, return receipt requested, within three hundred sixty five (365) days after the party making the demand knew, or exercising reasonable diligence and care, should have known, of the Dispute. Notwithstanding the previous sentence, in the case that the parties unsuccessfully attempt mediation to resolve a Dispute, the demand for arbitration shall be made within sixty (60) days of the final mediation session. However, in no case shall such demand be made after the statute of limitations on a civil suit based on the Dispute would have run. The prevailing party shall be entitled to costs and fees of the arbitration and, in the discretion of the arbitrator who shall take into account the relative merits of the opponent's case, the arbiter may award attorney's fees and arbitration costs to the prevailing party.

D. Provisional Remedies. The filing of a judicial action to enable the reporting of a notice of pending action, for order of attachment, receivership, injunction, or other like provisional remedies, shall not constitute a waiver of mediation or arbitration under this provision, nor shall it constitute a breach of the duty to arbitrate.

E. Exclusions. The terms of this Section shall not apply to: 1) Foreclosure or other action or proceeding to enforce a deed of trust, mortgage or land contract; or 2) The filing or enforcement of a construction or similar lien.

Cl 2015 Omaha Area Board of REALTORS® Page 6 oflO 1/20/2015 Form 200

Purchaser(s) Initials: Seller(s) Initials:

• Purchase Agreement - Cont.

F. Waiver. BY SIGNING TIIlS PURCHASE AGREEMENT, THE PARTIES AGREE THAT EVERY DISPUTE DESCRIBED ABOVE THAT IS NOT RESOLVED BY INFORMAL SETTLEMENT OR MEDIATION WILL BE DECIDED EXCLUSIVELY BY ARBITRATION AND THAT ANY ARBITRATION DECISION WILL BE FINAL AND BINDING. THE PARTIES AGREE THAT THEY WILL RECEIVE ALL THE RIGHTS AND BENEFITS OF ARBITRATION BUT ARE GIVING UP RIGHTS THEY MIGHT HAVE TO LITIGATE THOSE CLAIMS AND DISPUTES IN A COURT OR JURY TRIAL, OR TO PARTICIPATE AS A REPRESENTATIVE OR MEMBER OF ANY CLASS OF CLAIMANTS IN CONNECTION WITH ANY SUCH DISPUTES. NO PARTY TO THIS AGREEMENT, WHETHER REALTOR® OR SELLER, SHALL BE ENTITLED TO JOIN OR CONSOLIDATE DISPUTES BY OR AGAINST OTHERS IN ANY ARBITRATION, OR TO INCLUDE IN ANY ARBITRATION ANY DISPUTE AS A REPRESENTATIVE OR MEMBER OF A CLASS, OR TO ACT IN ANY ARBITRATION IN THE INTEREST OF THE GENERAL PUBLIC OR IN ANY PRIVATE ATTORNEY GENERAL CAPACITY.

36. Offer Expiration: This offer to purchase is subject to acceptance by Seller on or before 20 ___, at o'clock . M., Omaha, NE time. Purchaser acknowledges receipt of a signed copy of this Purchase Agreement, as well as Estimated Purchaser's Closing Cost Statement ifrequired by law.

37. List of Attachments and Addenda, and Disclosures:

D Seller Property Condition Disclosure Statement D Disclosure oflnformation on Lead-Based Paint and/or Lead-Based Paint Hazards D S.I.D. Statement D Limited Dual Agency Agreement D Affiliated Business Arrangement Disclosure D D D D

D

D

D

D

THE REMAINDER OF TIDS PAGE INTENTIONALLY LEFT BLANK

C 2015 Omaha Area Board of REALTORS~ Page 7 oflO 1/20/2015 Form 200

Purchaser(s) Initials: Seller(s) Initials: ___ _

Purchase Agreement - Cont.

THIS CONTRACT CONTAINS AN ARBITRATION PROVISION WHICH MAY BE ENFORCED BY THE PARTIES. The arbitration provision is contained in Section 35.

The undersigned parties executed this AGREEMENT.

Purchaser:------------------

Printed Name:----------------- Printed Name: ----------------

Address:------------------ Address: _________________ _

City: ________ State: __ Zip: ___ _ City: _________ State: __ Zip: __ _

Phone: ___________ _ Phone: -----------~

NAMES FOR DEED

BUYER AGENT INFO

REALTOR® (Company Name) AGENT NAME (Printed)

OFFICE ADDRESS AGENT E-MAIL ADDRESS

BROKER CODE# AGENT CODE#

OFFICE PHONE # AGENT PHONE#

RECEIPT

*If deposit to be delivered later, see Section IOC.

RECEIVED FROM:

the sum of _________________________________________ _

($ _________ __, DOLLARS (by _________ ) to apply to the purchase price of the Property on terms and

conditions as stated. This receipt is not an acceptance of the above offer to purchase.

RECEIVED BY:------------- SIGNATURE ____________ _

PROPERTY ADDRESS: ___________________________________ _

© 2015 Omaha Area Board of REALTORS®, Inc. Page 8 oflO 1/20/2015 Form 200

Purchaser(s) Initials: Seller(s) Initials:

'~hase Agreement- Cont.

I ACCEPTANCE I The Seller, whether one or more, accepts the foregoing offer to purchase on 20_, at

o'clock . M., Omaha, NE time, on the terms stated and agrees to convey title to the Property, deliver possession, ------and perform all the terms and conditions set forth, except as follows:

Seller acknowledges receipt of a copy of this Agreement with all identified addenda and, if required by law, an Estimated Seller's Closing Statement.

THIS CONTRACT CONTAINS AN ARBITRATION PROVISION WHICH MAY BE ENFORCED BY THE PARTIES. The arbitration provision is contained in Section 35.

The undersigned Seller executes this agreement as of the date set forth above.

Seller: Seller:--------------------

STATE OF STATE OF _______________ _

COUNTY OF COUNTY OF ______________ _

The foregoing Purchase agreement was acknowledged before me on The foregoing Purchase agreement was acknowledged before me on

______________ at ___ o'clock_m., ______________ at ___ o'clock_m.,

by: -------------Seller's Name (Printed) Seller's Name (Printed)

NOTARY PUBLIC COMMISSION EXPIRES NOTARY PUBLIC COMMISSION EXPIRES

SEAL: SEAL:

SELLER AGENT INFO

REALTOR® (Company Name) AGENT NAME (Printed)

OFFICE ADDRESS AGENT E-MAIL ADDRESS

BROKER CODE# AGENT CODE#

OFFICE PHONE# AGENT PHONE#

PROPERTY ADDRF.SS: ___________________________________ _

C 2015 Omaha Area Boud ofREALTORSll> Page 9 oflO 1/20/2015 Fonn 200

Purchaser(s) Initials: Seller(s) Initials:

Purchase Agreement - Cont.

I ACCEPTANCE I The Purchaser, whether one or more, accepts the foregoing Seller's counteroffer to purchase on 20__, at o'clock . M., Omaha., NE time, on the terms stated and perform all the terms and conditions set forth, except as follows:

Purchaser acknowledges receipt of a copy of this Agreement with all identified addenda and, if required by law, an Estimated Purchaser's Closing Statement.

THIS CONTRACT CONTAINS AN ARBITRATION PROVISION WHICH MAY BE ENFORCED BY THE PARTIES. The arbitration provision is contained in Section 35.

The undersigned Purchaser executes this agreement as of the date set forth above.

Purchaser:-------------------- Purchaser:-------------------

REAL ESTATE CERTIFICATION

We the undersigned Seller(s) Purchaser(s) and Agent(s), involved in this transaction, each certify that the terms of this Purchase Agreement are true to the best of our knowledge and belief and that any other agreement entered into by any of these parties in connection with this transaction is attached to this Purchase Agreement.

Purchaser: Seller: date date

Purchaser: Seller: date date

Agent: Agent: date date

PURCHASER RECEIPT

Purchaser acknowledges receipt of a fully executed copy of this Purchase Agreement on 20 __ . NOTE: At closing, Purchaser required to have wire transferred funds or certified or cashier's check for the balance of amounts due.

Purchaser: ------------------ Purchaser:------------------

PROPERlY ADDRESS: ______________________________________ _

Cl 2015 Omaha Area Board of REALTORS® Page 10 of10 1120/2015 Form 200

Purchaser(s) Initials: Seller(s) Initials:

9074 Federal Register I Vol. 61, No. 45 I Wednesday, March 6, 1996 I Rules and Regulations

(Sample Disclosure Format for Target Housing Sales)

Disclosure of Information on Lead-Based Paint and/or Lead-Based Paint Hazards

Lead Warning Statement EvefY purchaser of any interest in residential real property on which a residential dwelling was built prior to 1978 is notified that such property may present exposure to lead from lead-based paint that may place young children at risk of developing lead poisoning. Lead poisoning in young children may produce perma­nent neurological damage, including learning disabilities, reduced intelligence quotient, behavioral prob­lems, and impaired memofY. Lead poisoning also poses a particular risk to pregnant women. The seller of any interest in residential real property is required to provide the buyer with any information on lead-based paint hazards from risk assessments or inspections in the seller's possession and notify the buyer of any known lead-based paint hazards. A risk assessment or inspection for possible lead-based paint hazards is recommended prior to purchase.

Seller's Disclosure (a) Presence of lead-based paint and/or lead-based paint hazards (check (i) or (ii) below):

(i)-- Known lead-based paint and/or lead-based paint hazards are present in the housing (explain).

(ii)-Seller has no knowledge of lead-based paint and/or lead-based paint hazards in the housing.

(b) Records and reports available to the seller (check (i) or (ii) below): (i)-Seller has provided the purchaser with all available records and reports pertaining to lead-based paint and/or lead-based paint hazards in the housing (list documents below).

(ii)-- Seller has no reports or records pertaining to lead-based paint and/or lead-based paint hazards in the housing.

Purchaser's Acknowledgment (initial) (c)--Purchaser has received copies of all information listed above. (d)--Purchaser has received the pamphlet Protect Your Family from Lead in Your Home. (e)-Purchaser has (check (i) or (ii) below):

(i)-- received a 10-day opportunity (or mutually agreed upon period) to conduct a risk assessment or in­spection for the presence of lead-based paint and/or lead-based paint hazards; or (ii)-- waived the opportunity to conduct a risk assessment or inspection for the presence of lead-based paint and/or lead-based paint hazards.

Agent's Acknowledgment (initial) (f)-Agent has informed the seller of the seller's obligations under 42 U.S.C. 4852d and is aware of his/her

responsibility to ensure compliance.

Certification of Accuracy The following parties have reviewed the information above and certify, to the best of their knowledge, that the information they have provided is true and accurate.

Seller Date Seller Date

Purchaser Date Purchaser Date

Agent Date Agent Date

·7575 OVOID LJ CORRECTED Fil.ER'S name, street address, city or town, state or province, counlry, ZIP 1 Date of closing OMB No. 1545-0997 er fcrelgn postal code, and telephone number

~©14 Proceeds From Real

2 Gross proceeds Estate Transactions

$ Form 1099-S FILER'S federal identification number! TRANSFEROR'S identification number 3 Addrells or legal description 6ncludlng olty, state. and ZIP c:ode) Copy A

For

TRANSFEROR'S name Internal Revenue Sel'.Vlce Center

File with Form 1096. For Privacy Act

Street address {including apt. no~ and Paperwork Reduction Act

Notice, see the City or town, state or province, eounlry, and ZIP or foreign postal code 4 Chack here if the transferor received or will receive

D 2014 General

property or services as part of the consideration .,.. Instructions for

Account or escrow number {see instructions) S Buyer's part of real estate tax Certain

lnfonnation $ Returns.

Form 1099..S cat. No. 642921: www.lrs.gov/fonn1099s Department of the Treaswy • Internal Revenue Se!Vice

Do N.ot Cut or Separate Forms on This Page - Do Not Cut or Separate Forms on This Page

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Title Insurance CommitmentDaniel C. Pauley

Dunmire Fisher & Hastings, Hastings

August 12, 2015University of Nebraska College of Law, Lincoln

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By:Daniel C. Pauley

Dunmire, Fisher & Hastings

American Land & Title Association Over view of Title Insurance.

Types of Title Insurance Owners Lenders Cost/Payment

Why Title Insurance is important.

The Title Commitment

Why you have to understand Title Insurance First.

What to look for. How to protect your

client and yourself. Changes to the law.

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An Owner’s Policy is typically issued in the amount of the real estate purchase price, and remains in effect for as long as the owner, or his or her heirs, retains an interest in the property. In addition to identifying risk before a transaction is completed, the Owner’s Policy will pay valid claims and all defense costs against attacks on the title.

A Loan Policy assures the lender of the validity, priority and enforceability of its lien (mortgage) –serving as protection for the lender’s security interest in the property. A Loan Policy is issued in the amount of the loan, and liability decreases as the mortgage debt is reduced.

Owner’s title insurance (an Owner’s Policy), which protects the buyer, and lender’s title insurance (a Loan Policy), which protects the lender. In a typical residential transaction, the title policy often required by the mortgage lender will not safeguard the rights and interests of the homebuyer, therefore, a separate Owner’s Policy is necessary.

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The cost of a title insurance policy relative to the cost of a property transaction is about one-half to one percent of the purchase price. The premium is based on the purchase price of the property, generally determined by the value of the land plus any improvements.

As an example, the cost for an owner’s policy for a home in Washington, D.C., listed at $474,000 and assuming a 20 percent down payment, is around $1,100. Over the average duration of homeownership, that spreads out to about $85 annually or about $7 per month. The longer you own your property, the overall cost decreases even more.

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This section lists what kinds of risks the policy insures against. However, the policy makes it clear that the insurance of the listed risks are subject to (1) the Exclusions listed following the Covered Risks, (2) any exceptions listed in Schedule B, and (3) the Conditions. In the most current ALTA Owner’s policy, there are ten covered risks listed in the policy. Some of the most important covered risks are:

the risk that someone else owns your property that there is some defect or encumbrance on your title

caused by fraud or forgery any liens for real estate taxes or assessments that are due but

unpaid that your title is unmarketable, that is, you are unable to sell

your property to a purchaser because of a title defect right of access to and from your land.

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Exclusions limit the coverage of the policy. They deal with issues that are outside the control of the title company. The ALTA owner’s policy contains five exclusions, which include matters such as governmental regulations on the land and eminent domain, as well as title matters created or agreed to by the insured, or title defects known to the insured but not disclosed in writing to the title company prior to the date of the policy. The policy does not insure against any defect or title issue that is created or attaches to the property after the date of the policy. Also, the policy does not insure against the effects of bankruptcy law on the transaction creating the insured interest.

Schedule A sets forth the specific information on the title and policy, such as the date of policy, the amount of insurance, the insured, the legal description of the land insured by the policy and the estate insured, such as fee simple or leasehold. Schedule A must be attached to the policy in order for the policy to be valid.

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Schedule B lists the various exceptions to the title that the title company found when it performed its title search. Common exceptions would be things such as prior unreleased mortgages on the property, easements, taxes, restrictions on the use of the property, and any other limitations on the title such as homestead rights or survey issues if no survey has been performed. By listing various items as exceptions, the title company is telling the insured that these items are not covered by the title policy, and that the title company will not pay a claim or defend against a claim based on these excepted items.

This section outlines the relationship between the insured and the title company. Paragraph 1 contains the definitions of certain terms used in the policy. Terms such as “Insured,” “Insured Claimant,” “Knowledge” and “Public Records” are defined so as to eliminate any ambiguity. There are several different paragraphs setting out how a claim under the policy is handled, including how to provide notice of a claim, what is required to prove loss, and the requirement that the insured must cooperate with the title company in the handling of the claim. The Conditions describe the rights of the title company to pay or settle the claim, and the determination, extent and limitation of liability. Most policies also contain a paragraph that allows the insured or the title company to demand arbitration if the amount is under $2 million.

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prior deeds mortgages divorce decrees court judgments delinquent taxes child support payments

Owner’s title insurance protects your right to your home.

By searching, clearing and insuring the title to your home before you buy it, your owner’s title policy offers protection for your property rights for as long as you and your heirs own your home. If ownership of your property ever comes into question, an owner’s title insurance policy protects you from expensive legal problems that could result in the loss of your home.

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Title. Within ten (10) days after the signing of this Agreement by Sellers and Buyer, Sellers shall furnish to Buyer a title insurance commitment. Within ten (10) days thereafter, Buyer shall furnish Sellers an opinion of Buyer’s counsel showing any defects in title which render the title unmarketable. Sellers shall thereafter have a reasonable time in which to cure any such defects. If they cannot be cured or are not cured within a reasonable time, Buyer may either waive such defects or rescind this agreement. To be marketable, title must show the Property to be in the Sellers, free and clear of all liens, encumbrances or special taxes levied or assessed. Building and use restrictions which do not interfere with the current uses of the Property, utility easements not exceeding ten feet (10’) in width abutting the boundary lines of the Property, and covenants of record which do not interfere with the use of the Property as currently used shall not be considered defects of title.

Title. Within fifteen (15) days after execution of this Agreement, Seller shall cause to be furnished to Buyer a title insurance commitment effective as of the date of this Agreement. Within ten (10) days thereafter, Buyer shall furnish Seller an opinion of Buyer’s counsel showing any defects in title which render the title unmarketable. Seller shall thereafter have a reasonable time in which to cure any such defects. If they cannot be cured or are not cured within a reasonable time, Buyer may either waive such defects or rescind this Agreement. To be marketable, title must show the Property to be in the Seller, free and clear of all liens, encumbrances or special taxes levied or assessed. Building and use restrictions, utility easements, and limitations of record which do not interfere with the use of the Property as currently used shall not be considered defects of title.

7/29/2015

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Dear Real Estate Attorneys:

The Consumer Protection Financial Bureau (CFPB) has new rules and regulations that take effect October 3, 2015. They will have a big impact on residential real estate practices in Nebraska and across the country. If you haven’t heard about them yet, you should take a look at the regulations or read one of the many online articles about them soon.

Most importantly, on October 3, 2015, a new closing statement replaces the old HUD-1 you are familiar with. This form is variously called the CFPB disclosure form, the TILA-RESPA integrated disclosure form or the TRID form, but its basic purpose is to give homebuyers complete information before closing and an opportunity to complain to the federal government about lending and closing abuses.

For us real estate lawyers, there are three important things to note about the new CFPB disclosure rules: (1) if a bank loan is involved, it will generally take 45-60 days after a purchase agreement is signed before closing can occur; (2) if there are any material changes on the disclosure form (such as increases in the interest rate, changes in the purchase price or property being sold, additional closing costs, etc.) after it is sent to the buyer, a new 3-7 day waiting period takes effect. Therefore, some closings are going to be delayed at the last minute. This will especially cause problems for successive closings (A sells to B, B sells to C, and they all are set to close and move into new homes the same day) because any delay in the chain of closings may result in someone being without a place to stay for a while; (3) if you want the closing agent to collect your fees and costs for a residential real estate sale, please have your final figures to the agent a week or more in advance. The other alternative is to collect those fees outside of closing so that you are paid directly by the client and not through the title company.

Until we all know more about how the new rules are going to work, if you are using Prairie Title or one of the other local escrow companies to close a sale involving a bank loan on or after October 3rd, please call them in advance to confirm what they need from you.

We appreciate your business and hope the above information is helpful. If you have any questions, please call me or Laurie Hawes or Jennifer Krings at Prairie Title.

Sincerely,

Dick Witt

www.alta.org

www.homeclosing101.org

Title insurance overview:http://www.alta.org/about/TitleInsuranceOverview.pdf

Fidelity National’s (Chicago Title’s parent company’s) brochure on why owner’s title insurance is needed:https://nationalagency.fntg.com/Uploads/0/Module/Links/FNTG%20MWA%20why_you_need_owners_title_insurance_brochure.pdf

Closing protection letters: https://nationalagency.fntg.com/Uploads/0/Module/Links/13%20-%20KBYC%20-

%20CPL%20vs%20Insurance.pdf

What is the CFPB: https://nationalagency.fntg.com/Uploads/0/Module/Links/9%20-%20KBYC%20-

%20What%20is%20the%20CFPB.pdf

What attorneys need to know about new CFPB regs (which now take effect October 3): https://nationalagency.fntg.com/Uploads/0/Module/Links/Five%20Things%20Attorneys%20Need

%20to%20Know.pdf

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