Sample 1st page of our Alabama Sales Contract
Filled out for a $140,000 house where the Buyer is making
a $14,000 down payment plus a $1,000 earnest money deposit
SALES CONTRACT
DATE August 9, 200X_____________
1. PARTIES
The Buyer: ___ Jacob Buyer_______________________________________________ agrees to buy
and the Seller: ______ Arthur Sellerman ___________________________________ agrees to sell
the Real Property, improvements and all other appurtenances located at:
Legal Description (Lot, block sub-division, county, etc): Lot 26, Block 14, of Waters Edge subdivision
in Montgomery County, Alabama ...............................................................................................................................................
*** Because street names sometimes change, the address is NOT the legal description of your property. The legal description can be found on your deed (usually in a lot and block number format). If you can’t find it leave the legal description blank. ***
Also know as
street address: 2432 Jefferson Davis Street
City:________ Marrietta______________________, State:____ AL________ Zip:_ 30088__
The Property includes all appliances and equipment, heating and air-conditioning units, ceiling fans, light fixtures, dishwashers, ranges, mail boxes, security and fire detection equipment, satellite dish systems, garage door openers, window treatments and all other property owned by the Seller and attached to the above real property unless excluded in the attached Sellers Disclosure Statement.
Other items of personal property included in the sale as part of the “Property” are: ____ Lawn Chairs___
_____________________________________________________________________________________
The above real property and personal property are collectively, the “Property”.
2. PURCHASE PRICE AND METHOD OF PAYMENT.
The purchase price to be paid by the Buyer (in U.S. Currency) at closing is:................................ $140,000
(a) Cash deposits to be held in trust by Escrow Holder: ____Paul Milawyer__________
1. Earnest money deposited in the amount of .............................................................................. $1,000
2. Additional escrow deposit to be made within ___ days of Effective Date............................ $...................
(b) Mortgage financing checked below and described under “Financing”, and or in separate exhibits.
__ Assumption of existing mortgage with approximate balance of........................................... $...................
_X New mortgage financing in the amount of:............................................................................... $125,000
__Purchase money mortgage or note to seller in the amount of:.............................................. $...................
(c) Buyer warrants that Buyer will at closing have additional cash or locally drawn bank or cashier’s check(s) in the amount of: ............................................................................................................................................ $14,000
Paragraph 2 states the agreed purchase price and summarizes how the Buyer will pay that price. The Buyer's payments include a cash portion consisting of his $1,000 earnest money deposit plus a $14,000 cash payment at closing. The bulk of the payment will come from a $125,000 mortgage loan the Buyer hopes to get..
3. FINANCING
The portion of the Purchase Price not payable in cash will be paid as follows (Check applicable items below)
__ (a) This is an all cash transaction with no contingency for mortgage loan financing. Buyer shall pay the purchase price in cash to Seller
_X (b) THIRD PARTY FINANCING: This Contract is contingent on Buyer’s ability to obtain approval of a loan in the total amount of $_ 125,000__ within _ 30 days after the Effective Date.
Loan type (check only one): __ Conventional __VA _X_FHA __ Other
Rate type (check only one) : _X_ Fixed __Adjustable __Fixed or Adjustable rate loan, at an initial interest rate no higher than _7__%, with discount, points and origination fees no more than _2_% of the total loan amount, and for a term of _30 years.
Buyer will apply for a loan within 5 days after the Effective Date and use all reasonable diligence to get approval. If Buyer fails to get the above loan approval before the closing date, either Buyer or Seller may cancel this Contract by written notice, and all deposit shall be returned to the Buyer.
__(c) ASSUMPTION OF EXISTING MORTGAGE LOAN (see Exhibit _____ for details); or
__(d) SELLER FINANCING: A promissory note from Buyer to Seller for $__________ , bearing ______% interest.
Paragraph 3 describes the $125,000 mortgage loan the Buyer will try to get within the next 30 days. If unable to get a $125,000 mortgage loan with interest rate no higher than 7%, and origination fees no more than 2%, the Buyer may back out of the contract without penalty.
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