Free Real Estate Transactions Law Case Study Sample

REAL ESTAST CONTRACTSeller: Robert Riddell3310 Gilbert DriveLiberty, Texas 75007Buyer: Billy Wayne Johnson2244 Shady TrailLiberty, Texas 75007Property: 635 Wishbone StreetTallulah, Texas 75007Earnest Money: $10,000 Cash delivered to the Title Company upon full execution.Title Company/Escrow Agent: Eastland Title Company535 State AveLiberty, Texas 75007FOR TEN DOLLARS AND OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH ARE HEREBY ACKNOWLEDGED, THE PARTIES HERETO AGREE AS FOLLOWS:1. Seller agrees to sell to Buyer and Buyer agrees to buy from Seller the Property for a purchase price of $124,000 ($175,000) to be payable at closing which shall occur on the first Monday after the expiration of the Review Period (hereinafter defined) at 10:00 a.m. at the offices of the Title Company/Escrow Agent.2. The Property shall be conveyed free of any liens or encumbrances or any matters that would prevent its use as a restaurant. (this should be removed and a period placed after encumbrances or reworded as this is AN IS sale. The buyer offers no representations or warranties on whether the property can or cannot be used for a restaurant).3. The Seller, at Seller’s expense, shall deliver to Buyer a Title Commitment issued by the Title Company and a Survey prepared by a registered surveyor in this state covering the Property within fifteen days after the Effective Date of this Agreement (which shall be the date it is executed by the last of the Seller or the Buyer). (This section also needs to be removed as that is the buyer’s responsibility within the 30 day period)4. Buyer shall have thirty days after delivery of the last of the Title Commitment and Survey (this should changed to thirty days after this Agreement is executed) (the “Inspection Period”) to review such documents and to perform such inspections as Buyer shall desire. At the expiration of the Inspection Period, Buyer shall notify Seller either (i) that Buyer is satisfied with the Property and wants to proceed to close on the Purchase, or (ii) that Buyer is terminating the Agreement, in which event, the Earnest Money shall be returned to Buyer. Again this needs to be changed as it is an as is property. The survey should be removed. 5. At the closing, Buyer shall deliver the Purchase Money to the Title Company and pay any of Buyer’s customary closing costs. Seller shall deliver a General Warranty Deed to Buyer conveying the Property to Buyer. Seller shall pay the cost of the Title Insurance and any Seller’s customary closing costs. Taxes for the year of closing shall be pro-rated. This should be removed. The Buyer should pay for that.
6. Seller represents and warrants to Buyer that the Property is zoned to allow use as a restaurant and that all permits necessary to operate the Property as a restaurant are available to Buyer. This entire section should be removed and should state clearly the Buyer is responsible for nothing. Again this is an AS IS sale7. Risk of Loss shall be with Seller until Closing and Seller shall keep the Property insured. Seller agrees that he shall maintain the Property so that there are no material defects in the Property that would interfere with its use as a restaurant. (This totally needs to be changed. Again it is an AS IS sale and the Buyer is not responsible for this)
8. There needs to be a clause stating the Buyer has no redress should the Seller default on the agreement other than to sue for specific performance or terminate the Agreement and receive the earnest money back.
9. There also needs to be a clause how the Agreement can be terminated for either party.THIS OFFER WILL EXPIRE IF NOT EXECUTED BY THE SELLER ON OR BEFORE July 2, 2014Seller: _________________________________Date:____________________________Buyer: (Assume it has been signed):Date: June 26, 2014