SELLERS DISCLOSURE ADDENDUM
ADDENDUM to the Agreement of Sale dated __________________ by and between
_____________________________________ (Hereinafter referred to as Seller)
And ____________________________________________________________________
(Hereinafter referred to as Buyer) for the property known as lot number ___________ in the
____________________________________________ Community.
1. Purchase Agreement and Property. The Seller agrees to sell and the Buyer agrees to
Buy a dwelling, similar to model _____________________, with decorator features, extras or
upgrades specifically included in their final plan and addendum.
2. Delay of Closing. The Buyer understands and agrees that if the property is not completed and ready for occupancy on the date specified in this Agreement of Sale for closing of title, the Buyer will accept the deed and pay the purchase price on the date when the property is completed and ready for occupancy. The Buyer agrees that there will be no reduction in the purchase price for this delay.
3. Completion Escrow's at Settlement. In the event that both parties desire to settle before the property is completed and ready for occupancy (as that term is defined in this Agreement of Sale), it is agreed and understood that no monies will be placed in escrow or withheld by the Buyer from the Seller to guarantee the completion of the Unit. The Buyer agrees that as written guarantee from the Seller that the work will be completed within a reasonable time by the Seller and will be satisfactory. If the home is constructed during a time of year in which the exterior can not be completed, funds can be escrowed and held by the title company that is closing the home. This escrow can not be more than one and one half times the actual cost to the Seller and will only apply to grading, seeding, driveway and sidewalks. Buyer and Seller agree that an appraiser shall be authorized to re-inspect and release escrowed funds upon the work being completed. Buyers agree that the release of these funds after completion by Seller does NOT require Buyers signature or authorization.
4. Guarantees and Warranties to Buyer. The Seller will supply a homeowner's warranty in favor of the Buyer for the property that is the subject of this Agreement of Sale. This warranty will be issued by whomever the Seller shall designate. The Buyer agrees that settlement will constitute Buyer's full acceptance of the property and Buyer shall not have any claims against the Seller for any cause after the settlement, except for guarantees provided in this Agreement of Sale.
5. Fire Or Other Damage. The risk of loss or damage to the premises, by fire or otherwise, remains with the Seller until settlement. The Seller shall not be obligated, but shall have the option to rebuild or repair the whole or any part of the building either entirely or partially damaged or destroyed by fire or other casualty and this Agreement of Sale shall continue in force. If Seller does not elect to rebuild or repair, the Seller may cancel this Agreement of Sale and shall only be obligated to repay monies paid by the Buyer to the Seller, without interest.
6. Seller's Obligation For Non-Performance. The Seller's sole obligation in the event the Seller does not carry out the obligations under this Agreement of Sale, is limited to the return of the deposit paid by the Buyer and prepaid "extra features" monies paid to the Seller by Buyer.
7. Buyer's Obligation. Should Buyer be unprepared to make settlement on the date specified by
Seller in notice to Buyer, Buyer may request in writing, that Seller delay settlement for a reasonable period of time.
Should Seller grant a delay in settlement after receiving a request from Buyer, Buyer agrees to pay to Seller a
sum of two percent (2%) over the prime interest rate on the Total Buyer Price, pro-rated daily, for each
day settlement is delayed beyond the date specified in the notice to Buyer. Any delay in settlement under
this provision shall be at the sole discretion of Seller.
8. Color Selections. If Buyer does not perform color selections of necessary items to be furnished
with the home within 10 days of notification by Seller, Buyer hereby agrees to allow Seller to make these
color selections. The Seller has to right to approve any and all color selections. Should a selection
be discontinued, Buyer will have the right to make another selection. If another selection is not made then
the Seller will make the selection. Color selections will be made available to the Buyer(s) either at a
model home or the Keller Williams office.
9. House Orientation, Utility Locations and Foundation. Seller has the right to build house with
the garage located on the side Seller deems is best, also referred to as "Mirroring The House", based on
the topography of the lot. The location of the utility lines and meters servicing the house, telephone, electric,
gas, cable TV, etc. may vary from house to house and Seller shall have the sole right to determine said
locations based on field conditions. Buyer should understand that the standard basement foundation does
not include an acceptable egress to accommodate living space as per code. Therefore the builder nor the
buyer can “finish” the basement to include living space without adding an egress mechanism option (i.e.
larger window, sliding door, steel door, bilco door, etc.).
10. Items Not Included In The Sale Of This Home. Attached hereto is a schedule of items
(Option List) which may be found in the model homes or on the premises of the model homes. These
are decorator features, extras or upgrades of certain products to show our prospective customers the range
of items that can be added to our homes at an additional charge. Unless specified in the Agreement of Sale,
none of these items are included in the sale of this home.
11. Changes and Substitutions/Model Home. The property to be constructed by the Seller shall be substantially in accordance with Seller’s basic plan known as the model in item #1 of this Addendum. The Buyer has seen and approved this plan. The Buyers agree to accept such interior and exterior changes which the Seller, in its sole discretion, may deem advisable, however, the changes must be of equal quality, color and style. The Seller may also substitute materials and equipment in the property substantially equal in quality without notice to the Buyer. Options and upgrades that may be appear in a model or spec home should not expected to be standard in the base house. No upgrades or options will be added unless they are agreed upon and paid for.
12. Advertising Materials. The Buyer acknowledges that any newspaper and other advertisements,
advertising literature, brochures, floor plans, renderings, and the like which are displayed by the Seller are
estimates only. These items are subject to the terms and conditions of this Agreement of Sale and are not to be
incorporated into or to survive this Agreement of Sale, unless otherwise specifically provided for in the Agreement
of Sale.
13. Grading and Seeding. Final grading and seeding of the lawn is a part of this Agreement of Sale. The
builder shall not be responsible for weather conditions after settlement. Buyer shall assume full responsibility after
settlement for proper care and watering of lawns and shrubs, if any. In the event of soil settlement around
foundation or soil displacement due to excessive rain or erosion the builder agrees to supply soil for a period of
three (3) months from the date of settlement. Buyer will be responsible for soil distribution and re-seeding as
needed.
14. Photographs For Advertising. Buyer acknowledges that photographs have been taken, or may be taken in the future, of this property. Buyer gives the Seller permission to use these photographs for advertising purposes. The Seller will not use the property address in home as a model or show home for open house purposes prior to its settlement date. Any damage done to the home as a result of this will bethe responsibility of the Seller and completed prior to settlement.
15. Radon: BUYER hereby releases, quit claims and forever discharges SELLER, SELLER'S AGENT, SUBAGENTS, EMPLOYEES and any OFFICER or PARTNER of anyone of them and any other PERSON, FIRM or CORPORATION who may be liable by or through them, from any and all claims, losses or demands including personal injuries, and all of the consequences thereof, where now known or not which may arise from the presence of radon in any building on the property. Please be advised that the CONTRACTOR has neither tested for nor treated against radon in your home and therefore provides no warranty nor makes no claims regarding the presence of radon.
16. Buyer’s Right to Waive: Buyer acknowledges that Buyer has read the above disclosures, and
understands the purpose of the above-mentioned tests, inspections, and certifications. Buyer further
acknowledges that Buyer waives his/her right to any tests, inspections or certifications which have not been
initialed, unless such tests, inspections, and certifications are required by themortgage lender. All the inspections
called for above are the Buyer's responsibilities, and shall be at Buyer's expense, unless otherwise prescribed by
law or government regulation. Buyer agrees to pay for any indicated inspections whether or not settlement
occurs.
17. Locking Your Interest Rate. The Builder, Keller Williams and the Mark Will Team DO NOT GUARANTEE closing dates, therefore, we are not responsible if you lock your interest rate. The Buyer(s) understands that the Builder, Keller Williams or the Mark Will Team will not notify them when they can lock their interest rate; it is the Buyer’s responsibility to contact their mortgage company to discuss locking an interest rate.
18. Future Assessments. From the date of settlement moving forward the Buyer(s) will be responsible for property taxes, water, sewer bills, sidewalk and street light maintenance, if any, and any assessments that may be associated with this property.
19. Release of Liens. A bond of indemnity will be provided in place of a release of liens, prepared by the Title
Company/Attorney at no charge. If a release of liens is requested on behalf of Buyer, there will be a $200.00 charge
to Buyer. Seller/Builder must be notified thirty (30) days prior to date of settlement.
20. Construction Visits. See Buyer New Home Construction Visit Addendum.
21. Commitments. It is important to refrain from any communication with the builders trades people. The Buyer(s) understands that the Builder, Keller Williams or the Mark Will Team is NOT responsible for any verbal commitments made to them by ANY building sub contractor. Commitments will only be honored if they are in writing and signed by the builder.
22. Deposit Monies. THE BUYER(S) UNDERSTANDS THAT THEY CANNOT JUST CHANGE THEIR MIND AND GET THEIR DEPOSIT BACK!! Any monies held in escrow as a good faith deposit will become non-refundable as soon as the final plan is signed. For semi-detached or town home communities it takes effect when ground is broken on your unit. This clause in this addendum OVERRIDES the mortgage contingency in the agreement of sale.
23. Trees and Rock. On wooded lots it is the buyer’s responsibility for the costs for any and all trees that need to be removed in order to place and construct the house as outlined in an approved plan. During excavation, if rock or similar is encounter requiring it to be removed in order to place and construct the house as outlined in an approved plan, the buyer is responsible for all related costs to extract, remove and dispose of this rock or similar (i.e. blasting, breaking up by machine equipment, hauling to another location, etc.).
24. Delays. The Buyer(s) understands that there may be delays in construction. The Builder’s delivery dates are estimates, there will NOT be any compensation paid by the Builder, Keller Williams or the Mark Will Team for delays on the delivery of your home.
25. Questions. If you or your agent has a question during the course of your homes’ construction you should contact the builder via email at newconstruction@markwillteam.com. The builder will promptly response to your query back to the originating email address.
26. FHA/VA or other Government backed lending programs. As a buyer, if you fall into one of these programs it is very important that your buyers agent ask additional questions about your particular home on the lot you have selected. Many of these programs have a tougher inspection guideline then with a conventional mortgage that your buyers agent should be aware of. The Builder, Keller Williams or the Mark Will Team will not responsible or liable if your home does not settle on time as a result of the final inspection form an appraiser associated with one of these lending institutions. Examples of this would be a drive way slope is to steep, handrail requires on walkways, etc.
27. Seller's Help. Our builders do not pay the 1% transfer tax on any dollar amount added to the purchase price that is returned to the buyer in the form of closing cost assistance of any kind. The Buyer(s) will be responsible to pay this additional 1% transfer tax to the title company at the time of settlement of their home.
Our goal at The Mark Will Team, with our builders, is to build a quality home with a high degree of customer satisfaction and to minimize the time consumption of sale personnel during the construction process.
28. Pre-Settlement Occupancy. The Buyer(s) acknowledge that the Builders insurance provider STRICTLY prohibits any pre-settlement occupancy for any Buyer(s). The Buyer(s) will receive keys and gain occupancy to their home at the settlement of the property only after the Builder receives his proceeds check. If there is not a check, keys will not handed over. There will be no "dry" settlements. This is NOT negotiable!
29. Rescission by Builder. In the event of any dispute between Buyer and Builder as to the construction, equipment or completion of the house, or any matter arising from this agreement, Seller, as its sole option shall have the right to rescind and cancel this agreement, upon returning to Buyer the deposit money which was part of this agreement.
__________________________________ _______________________________ ___________
WITNESS BUYER DATE
__________________________________ _______________________________ ___________
WITNESS BUYER DATE
_________________________________ _______________________________ ___________
WITNESS SELLER DATE
Revised 11/2/06