Form WB-11 "Residential Offer to Purchase - Chicago Title Insurance Company" - Madison, Wisconsin

ADVERTISEMENT
For Sale By Owner Madison
Approved by Wisconsin Department of Regulation and Licensing
Madison, Wisconsin
WB-11 RESIDENTIAL OFFER TO PURCHASE
Page 1 of 5
1
BROKER DRAFTING THIS OFFER ON
[DATE] IS (AGENT OF SELLER) (AGENT OF BUYER) (DUAL AGENT) STRIKE TWO
2
GENERAL PROVISIONS The Buyer,
,
3
offers to purchase the Property known as [Street Address]
4
in the
of
, County of
5
Wisconsin (Insert additional description, if any, at lines 180 - 186, 318 - 321 or attach as an addendum per line 316), on the following terms:
6
PURCHASE PRICE:
7
Dollars ($
).
8
EARNEST MONEY of $
accompanies this Offer and earnest money of $
9
will be paid within
days of acceptance.
10
THE BALANCE OF PURCHASE PRICE will be paid in cash or equivalent at closing unless otherwise provided below.
11
ADDITIONAL ITEMS INCLUDED IN PURCHASE PRICE: Seller shall include in the purchase price and transfer, free and clear
12
of encumbrances, all fixtures, as defined at lines 124 - 132 and as may be on the Property on the date of this Offer, unless excluded
13
at lines 15 - 16, and the following additional items:
14
15
ITEMS NOT INCLUDED IN THE PURCHASE PRICE:
16
17
ACCEPTANCE Acceptance occurs when all Buyers and Sellers have signed an identical copy of the Offer, including signatures on
18
separate but identical copies of the Offer. CAUTION: Deadlines in the Offer are commonly calculated from acceptance. Consider
19
whether short term deadlines running from acceptance provide adequate time for both binding acceptance and performance.
20
BINDING ACCEPTANCE This Offer is binding upon both Parties only if a copy of the accepted Offer is delivered to Buyer on or
21
before
. CAUTION: This Offer may be withdrawn prior to delivery of the accepted Offer.
22
DELIVERY OF DOCUMENTS AND WRITTEN NOTICES Unless otherwise stated in this Offer, delivery of documents and written notices
23
to a Party shall be effective only when accomplished by one of the methods specified at lines 24 - 33.
24
(1) By depositing the document or written notice postage or fees prepaid in the U.S. Mail or fees prepaid or charged to an account
25
with a commercial delivery service, addressed either to the Party, or to the Party’s recipient for delivery designated at lines 27 or
26
29 (if any) for delivery to the Party’s delivery address at lines 28 or 30.
27
Seller’s recipient for delivery (optional):
28
Seller’s delivery address:
29
Buyer’s recipient for delivery (optional):
30
Buyer’s delivery address:
31
(2) By giving the document or written notice personally to the Party, or the Party’s recipient for delivery if an individual is designated at lines 27 or 29.
32
(3) By fax transmission of the document or written notice to the following telephone number:
33
Buyer: (
)
Seller: (
)
34
OCCUPANCY Occupancy of the entire Property shall be given to Buyer at time of closing unless otherwise provided in this Offer (lines
35
293 through 297). At time of Buyer’s occupancy, Property shall be free of all debris and personal property except for personal property
36
belonging to current tenants, or that sold to Buyer or left with Buyer’s consent. Occupancy shall be given subject to tenant’s rights, if any.
37
LEASED PROPERTY If Property is currently leased and lease(s) extend beyond closing, Seller shall assign Seller’s rights under said
38
lease(s) and transfer all security deposits and prepaid rents thereunder to Buyer at closing. The terms of the (written) (oral) STRIKE ONE
39
lease(s), if any, are
.
40
RENTAL WEATHERIZATION This transaction (is) (is not) STRIKE ONE exempt from State of Wisconsin Rental Weatherization
41
Standards (Wis. Admin. Code Comm 67). If not exempt, (Buyer) (Seller) STRIKE ONE will be responsible for compliance,
42
including all costs. If Seller is responsible for compliance, Seller shall provide a Certificate of Compliance at closing.
43
PLACE OF CLOSING This transaction is to be closed at the place designated by Buyer’s mortgagee or
44
no later than
,
unless another date or place is agreed to in writing.
45
CLOSING PRORATIONS The following items shall be prorated at closing: real estate taxes, rents, water and sewer use charges,
46
garbage pick-up and other private and municipal charges, property owner’s association assessments, fuel and
47
. Any income, taxes or expenses shall accrue to Seller, and be prorated, through the day
48
prior to closing. Net general real estate taxes shall be prorated based on (the net general real estate taxes for the current year, if
49
known, otherwise on the net general real estate taxes for the preceding year) (
50
). STRIKE AND COMPLETE AS APPLICABLE
51
CAUTION: If proration on the basis of net general real estate taxes is not acceptable (for example, completed/pending
52
reassessment, changing mill rate, lottery credits), insert estimated annual tax or other formula for proration.
53
PROPERTY CONDITION PROVISIONS
54
PROPERTY CONDITION REPRESENTATIONS: Seller represents to Buyer that as of the date of acceptance Seller has no notice
55
or knowledge of conditions affecting the Property or transaction (see below) other than those identified in Seller’s Real Estate
56
Condition Report dated
, which was received by Buyer prior to Buyer signing this Offer and which is made a part of this
57
Offer by reference COMPLETE DATE OR STRIKE AS APPLICABLE and
58
INSERT CONDITIONS NOT ALREADY INCLUDED IN THE CONDITION REPORT .
For Sale By Owner Madison
Approved by Wisconsin Department of Regulation and Licensing
Madison, Wisconsin
WB-11 RESIDENTIAL OFFER TO PURCHASE
Page 1 of 5
1
BROKER DRAFTING THIS OFFER ON
[DATE] IS (AGENT OF SELLER) (AGENT OF BUYER) (DUAL AGENT) STRIKE TWO
2
GENERAL PROVISIONS The Buyer,
,
3
offers to purchase the Property known as [Street Address]
4
in the
of
, County of
5
Wisconsin (Insert additional description, if any, at lines 180 - 186, 318 - 321 or attach as an addendum per line 316), on the following terms:
6
PURCHASE PRICE:
7
Dollars ($
).
8
EARNEST MONEY of $
accompanies this Offer and earnest money of $
9
will be paid within
days of acceptance.
10
THE BALANCE OF PURCHASE PRICE will be paid in cash or equivalent at closing unless otherwise provided below.
11
ADDITIONAL ITEMS INCLUDED IN PURCHASE PRICE: Seller shall include in the purchase price and transfer, free and clear
12
of encumbrances, all fixtures, as defined at lines 124 - 132 and as may be on the Property on the date of this Offer, unless excluded
13
at lines 15 - 16, and the following additional items:
14
15
ITEMS NOT INCLUDED IN THE PURCHASE PRICE:
16
17
ACCEPTANCE Acceptance occurs when all Buyers and Sellers have signed an identical copy of the Offer, including signatures on
18
separate but identical copies of the Offer. CAUTION: Deadlines in the Offer are commonly calculated from acceptance. Consider
19
whether short term deadlines running from acceptance provide adequate time for both binding acceptance and performance.
20
BINDING ACCEPTANCE This Offer is binding upon both Parties only if a copy of the accepted Offer is delivered to Buyer on or
21
before
. CAUTION: This Offer may be withdrawn prior to delivery of the accepted Offer.
22
DELIVERY OF DOCUMENTS AND WRITTEN NOTICES Unless otherwise stated in this Offer, delivery of documents and written notices
23
to a Party shall be effective only when accomplished by one of the methods specified at lines 24 - 33.
24
(1) By depositing the document or written notice postage or fees prepaid in the U.S. Mail or fees prepaid or charged to an account
25
with a commercial delivery service, addressed either to the Party, or to the Party’s recipient for delivery designated at lines 27 or
26
29 (if any) for delivery to the Party’s delivery address at lines 28 or 30.
27
Seller’s recipient for delivery (optional):
28
Seller’s delivery address:
29
Buyer’s recipient for delivery (optional):
30
Buyer’s delivery address:
31
(2) By giving the document or written notice personally to the Party, or the Party’s recipient for delivery if an individual is designated at lines 27 or 29.
32
(3) By fax transmission of the document or written notice to the following telephone number:
33
Buyer: (
)
Seller: (
)
34
OCCUPANCY Occupancy of the entire Property shall be given to Buyer at time of closing unless otherwise provided in this Offer (lines
35
293 through 297). At time of Buyer’s occupancy, Property shall be free of all debris and personal property except for personal property
36
belonging to current tenants, or that sold to Buyer or left with Buyer’s consent. Occupancy shall be given subject to tenant’s rights, if any.
37
LEASED PROPERTY If Property is currently leased and lease(s) extend beyond closing, Seller shall assign Seller’s rights under said
38
lease(s) and transfer all security deposits and prepaid rents thereunder to Buyer at closing. The terms of the (written) (oral) STRIKE ONE
39
lease(s), if any, are
.
40
RENTAL WEATHERIZATION This transaction (is) (is not) STRIKE ONE exempt from State of Wisconsin Rental Weatherization
41
Standards (Wis. Admin. Code Comm 67). If not exempt, (Buyer) (Seller) STRIKE ONE will be responsible for compliance,
42
including all costs. If Seller is responsible for compliance, Seller shall provide a Certificate of Compliance at closing.
43
PLACE OF CLOSING This transaction is to be closed at the place designated by Buyer’s mortgagee or
44
no later than
,
unless another date or place is agreed to in writing.
45
CLOSING PRORATIONS The following items shall be prorated at closing: real estate taxes, rents, water and sewer use charges,
46
garbage pick-up and other private and municipal charges, property owner’s association assessments, fuel and
47
. Any income, taxes or expenses shall accrue to Seller, and be prorated, through the day
48
prior to closing. Net general real estate taxes shall be prorated based on (the net general real estate taxes for the current year, if
49
known, otherwise on the net general real estate taxes for the preceding year) (
50
). STRIKE AND COMPLETE AS APPLICABLE
51
CAUTION: If proration on the basis of net general real estate taxes is not acceptable (for example, completed/pending
52
reassessment, changing mill rate, lottery credits), insert estimated annual tax or other formula for proration.
53
PROPERTY CONDITION PROVISIONS
54
PROPERTY CONDITION REPRESENTATIONS: Seller represents to Buyer that as of the date of acceptance Seller has no notice
55
or knowledge of conditions affecting the Property or transaction (see below) other than those identified in Seller’s Real Estate
56
Condition Report dated
, which was received by Buyer prior to Buyer signing this Offer and which is made a part of this
57
Offer by reference COMPLETE DATE OR STRIKE AS APPLICABLE and
58
INSERT CONDITIONS NOT ALREADY INCLUDED IN THE CONDITION REPORT .
59
A “condition affecting the Property or transaction” is defined as follows:
[Page 2 of 5, WB-11]
60
(a) planned or commenced public improvements which may result in special assessments or otherwise materially affect the
61
Property or the present use of the Property;
62
(b) completed or pending reassessment of the Property for property tax purposes;
63
(c)
government agency or court order requiring repair, alteration or correction of any existing condition;
64
(d) construction or remodeling on Property for which required state or local permits had not been obtained;
65
(e) any land division involving the subject Property, for which required state or local approvals had not been obtained;
66
(f)
violation of applicable state or local smoke detector laws; NOTE: State law requires operating smoke detectors on all levels
67
of all residential properties.
68
(g) any portion of the Property being in a 100 year floodplain, a wetland or a shoreland zoning area under local, state or federal laws;
69
(h) that a structure on the Property is designated as an historic building or that any part of Property is in an historic district;
70
(i)
structural inadequacies which if not repaired will significantly shorten the expected normal life of the Property;
71
(j)
mechanical systems inadequate for the present use of the Property;
72
(k)
insect or animal infestation of the Property;
73
(l)
conditions constituting a significant health or safety hazard for occupants of Property; Note: Specific federal lead paint
74
disclosure requirements must be complied with in the sale of most residential properties built before 1978.
75
(m) underground or aboveground storage tanks on the Property for storage of flammable or combustible liquids including but not
76
limited to gasoline and heating oil which are currently or which were previously located on the Property; NOTE: Wis. Adm. Code,
77
Chapter Comm 10 contains registration and operation rules for such underground and aboveground storage tanks.
78
(n) material violations of environmental laws or other laws or agreements regulating the use of the Property;
79
(o) high voltage electric (100 KV or greater) or steel natural gas transmission lines located on but not directly serving the Property;
80
(p) other conditions or occurrences which would significantly reduce the value of the Property to a reasonable person with
81
knowledge of the nature and scope of the condition or occurrence.
82
REAL ESTATE CONDITION REPORT: Wisconsin law requires owners of property which includes 1-4 dwelling units to provide
83
buyers with a Real Estate Condition Report. Excluded from this requirement are sales of property that has never been inhabited,
84
sales exempt from the real estate transfer fee, and sales by certain court-appointed fiduciaries, (for example, personal
85
representatives who have never occupied the Property). The form of the Report is found in Wis. Stat. § 709.03. The law provides:
86
“709.02 Disclosure . . . the owner of the property shall furnish, not later than 10 days after acceptance of the contract of sale . . . ,
87
to the prospective buyer of the property a completed copy of the report . . . A prospective buyer who does not receive a report within
88
the 10 days may, within 2 business days after the end of that 10 day period, rescind the contract of sale . . . by delivering a written
89
notice of rescission to the owner or the owner’s agent.” Buyer may also have certain rescission rights if a Real Estate Condition
90
Report disclosing defects is furnished before expiration of the 10 days, but after the Offer is submitted to Seller. Buyer should
91
review the report form or consult with an attorney for additional information regarding these rescission rights.
92
PROPERTY DIMENSIONS AND SURVEYS: Buyer acknowledges that any land, building or room dimensions, or total acreage
93
or building square footage figures, provided to Buyer by Seller or by a broker, may be approximate because of rounding or other
94
reasons, unless verified by survey or other means. Buyer also acknowledges that there are various formulas used to calculate
95
total square footage of buildings and that total square footage figures will vary dependent upon the formula used. CAUTION: Buyer
96
should verify total square footage formula, total square footage/acreage figures, land, building or room dimensions, if material.
97
INSPECTIONS: Seller agrees to allow Buyer’s inspectors reasonable access to the Property upon reasonable notice if the
98
inspections are reasonably necessary to satisfy the contingencies in this Offer. Buyer agrees to promptly provide copies of all such
99
inspection reports to Seller, and to listing broker if Property is listed. Furthermore, Buyer agrees to promptly restore the Property
100
to its original condition after Buyer’s inspections are completed, unless otherwise agreed with Seller. An “inspection” is defined as
101
an observation of the Property which does not include testing of the Property, other than testing for leaking carbon monoxide, or
102
testing for leaking LP gas or natural gas used as a fuel source, which are hereby authorized.
103
TESTING: Except as otherwise provided, Seller’s authorization for inspections does not authorize Buyer to conduct testing of
104
the Property. A “test” is defined as the taking of samples of materials such as soils, water, air or building materials from the
105
Property and the laboratory or other analysis of these materials. If Buyer requires testing, testing contingencies must be specifically
106
provided for at lines 180 - 186, 318 - 321 or in an addendum per line 316. Note: Any contingency authorizing such tests should
107
specify the areas of the Property to be tested, the purpose of the test, (e.g., to determine if environmental contamination is present),
108
any limitations on Buyer’s testing and any other material terms of the contingency (e.g., Buyer’s obligation to return the Property
109
to its original condition). Seller acknowledges that certain inspections or tests may detect environmental pollution which may be
110
required to be reported to the Wisconsin Department of Natural Resources.
111
PRE-CLOSING INSPECTION: At a reasonable time, pre-approved by Seller or Seller’s agent, within 3 days before closing,
112
Buyer shall have the right to inspect the Property to determine that there has been no significant change in the condition of the
113
Property, except for ordinary wear and tear and changes approved by Buyer, and that any defects Seller has elected to cure have
114
been repaired in a good and workmanlike manner.
115
PROPERTY DAMAGE BETWEEN ACCEPTANCE AND CLOSING: Seller shall maintain the Property until the earlier of closing
116
or occupancy of Buyer in materially the same condition as of the date of acceptance of this Offer, except for ordinary wear and tear.
117
If, prior to closing, the Property is damaged in an amount of not more than five per cent (5%) of the selling price, Seller shall be
118
obligated to repair the Property and restore it to the same condition that it was on the day of this Offer. If the damage shall exceed
119
such sum, Seller shall promptly notify Buyer in writing of the damage and this Offer may be canceled at option of Buyer. Should
120
Buyer elect to carry out this Offer despite such damage, Buyer shall be entitled to the insurance proceeds relating to the damage
121
to the Property, plus a credit towards the purchase price equal to the amount of Seller’s deductible on such policy. However, if this
122
sale is financed by a land contract or a mortgage to Seller, the insurance proceeds shall be held in trust for the sole purpose of
123
restoring the Property.
124
FIXTURES A “Fixture” is defined as an item of property which is physically attached to or so closely associated with land or
125
improvements so as to be treated as part of the real estate, including, without limitation, physically attached items not easily
126
removable without damage to the Property, items specifically adapted to the Property, and items customarily treated as fixtures,
127
including, but not limited to, all: garden bulbs; plants; shrubs and trees; screen and storm doors and windows; electric lighting
128
fixtures; window shades; curtain and traverse rods; blinds and shutters; central heating and cooling units and attached equipment;
129
water heaters and softeners; sump pumps; attached or fitted floor coverings; awnings; attached antennas, satellite dishes and
130
component parts; garage door openers and remote controls; installed security systems; central vacuum systems and accessories;
131
in-ground sprinkler systems and component parts; built-in appliances; ceiling fans; fences; storage buildings on permanent
132
foundations and docks/piers on permanent foundations. NOTE: The terms of the Offer will determine what items are
133
included/excluded. Address rented fixtures (e.g., water softeners), if any.
FSBO Madison
134
PROPERTY ADDRESS:
[page 3 of 5, WB-11]
135
TIME IS OF THE ESSENCE “Time is of the Essence” as to: (1) earnest money payment(s); (2) binding acceptance; (3) occupancy;
136
(4) date of closing; (5) contingency deadlines STRIKE AS APPLICABLE and all other dates and deadlines in this Offer except:
137
. If “Time is of the Essence” applies
138
to a date or deadline, failure to perform by the exact date or deadline is a breach of contract. If “Time is of the Essence” does not
139
apply to a date or deadline, then performance within a reasonable time of the date or deadline is allowed before a breach occurs.
140
DATES AND DEADLINES Deadlines expressed as a number of “days” from an event, such as acceptance, are calculated by
141
excluding the day the event occurred and by counting subsequent calendar days. The deadline expires at midnight on the last day.
142
Deadlines expressed as a specific number of “business days” exclude Saturdays, Sundays, any legal public holiday under
143
Wisconsin or Federal law, and other day designated by the President such that the postal service does not received registered mail
144
or make regular deliveries on that day. Deadlines expressed as a specific number of “hours” from the occurrence of an event, such
145
as receipt of a notice, are calculated from the exact time of the event, and by counting 24 hours per calendar day. Deadlines
146
expressed as a specific day of the calendar year or as the day of a specific event, such as closing, expire at midnight of that day.
147
THE FINANCING CONTINGENCY PROVISIONS AT LINES 149 - 163 ARE A PART OF THIS OFFER IF LINE 149 IS MARKED,
148
SUCH AS WITH AN “X”. THEY ARE NOT PART OF THIS OFFER IF LINE 149 IS MARKED N/A OR IS NOT MARKED.
149
FINANCING CONTINGENCY: This Offer is contingent upon Buyer being able to obtain a
150
INSERT LOAN PROGRAM OR SOURCE first mortgage loan commitment as described below, within
days of acceptance of this Offer.
151
The financing selected shall be in an amount of not less than $
for a term of not less than
years,
152
amortized over not less than
years. Initial monthly payments of principal and interest shall not exceed $
.
153
Monthly payments may also include 1/12th of the estimated net annual real estate taxes, hazard insurance premiums, and private
154
mortgage insurance premiums. The mortgage may not include a prepayment premium. Buyer agrees to pay a loan fee not to
155
exceed
% of the loan. (Loan fee refers to discount points and/or loan origination fee, but DOES NOT include Buyer’s
156
other closing costs.) If the purchase price under this Offer is modified, the financed amount, unless otherwise provided, shall be adjusted
157
to the same percentage of the purchase price as in this contingency and the monthly payments shall be adjusted as necessary to maintain
158
the term and amortization stated above. CHECK AND COMPLETE APPLICABLE FINANCING PROVISION AT LINE 159 OR 160.
159
FIXED RATE FINANCING: The annual rate of interest shall not exceed
%.
160
ADJUSTABLE RATE FINANCING: The initial annual interest rate shall not exceed
%. The initial interest rate shall
161
be fixed for
months, at which time the interest rate may be increased not more than
% per year. The
162
maximum interest rate during the mortgage term shall not exceed
%. Monthly payments of principal and interest may
163
be adjusted to reflect interest changes.
164
LOAN COMMITMENT: Buyer agrees to pay all customary financing costs (including closing fees), to apply for financing promptly, and
165
to provide evidence of application promptly upon request by Seller. If Buyer qualifies for the financing described in this Offer or other
166
financing acceptable to Buyer, Buyer agrees to deliver to Seller a copy of the written loan commitment no later than the deadline for loan
167
commitment at line 150. Buyer’s delivery of a copy of any written loan commitment to Seller (even if subject to conditions) shall satisfy
168
the Buyer’s financing contingency unless accompanied by a notice of unacceptability. CAUTION: BUYER, BUYER’S LENDER AND
169
AGENTS OF BUYER OR SELLER SHOULD NOT DELIVER A LOAN COMMITMENT TO SELLER WITHOUT BUYER’S PRIOR
170
APPROVAL OR UNLESS ACCOMPANIED BY A NOTICE OF UNACCEPTABILITY.
171
SELLER TERMINATION RIGHTS: If Buyer does not make timely delivery of said commitment, Seller may terminate this Offer if
172
Seller delivers a written notice of termination to Buyer prior to Seller’s actual receipt of a copy of Buyer’s written loan commitment.
173
FINANCING UNAVAILABILITY: If financing is not available on the terms stated in this Offer (and Buyer has not already
174
delivered an acceptable loan commitment for other financing to Seller), Buyer shall promptly deliver written notice to Seller of same
175
including copies of lender(s)’ rejection letter(s) or other evidence of unavailability. Unless a specific loan source is named in this
176
Offer, Seller shall then have 10 days to give Buyer written notice of Seller’s decision to finance this transaction on the same terms
177
set forth in this Offer, and this Offer shall remain in full force and effect, with the time for closing extended accordingly. If Seller’s
178
notice is not timely given, this Offer shall be null and void. Buyer authorizes Seller to obtain any credit information reasonably
179
appropriate to determine Buyer’s credit worthiness for Seller financing.
180
ADDITIONAL PROVISIONS/CONTINGENCIES
181
182
183
184
185
186
187
TITLE EVIDENCE
188
CONVEYANCE OF TITLE: Upon payment of the purchase price, Seller shall convey the Property by warranty deed (or
189
other conveyance as provided herein) free and clear of all liens and encumbrances, except: municipal and zoning ordinances
190
and agreements entered under them, recorded easements for the distribution of utility and municipal services, recorded building
191
and use restrictions and covenants, general taxes levied in the year of closing and
192
(provided none
193
of the foregoing prohibit present use of the Property), which constitutes merchantable title for purposes of this transaction. Seller
194
further agrees to complete and execute the documents necessary to record the conveyance. WARNING: Municipal and zoning
195
ordinances, recorded building and use restrictions, covenants and easements may prohibit certain improvements or uses and therefore
196
should be reviewed, particularly if Buyer contemplates making improvements to Property or a use other than the current use.
197
FORM OF TITLE EVIDENCE: Seller shall give evidence of title in the form of an owner’s policy of title insurance in the amount
198
of the purchase price on a current ALTA form issued by an insurer licensed to write title insurance in Wisconsin. CAUTION: IF TITLE
199
EVIDENCE WILL BE GIVEN BY ABSTRACT, STRIKE TITLE INSURANCE PROVISIONS AND INSERT ABSTRACT PROVISIONS.
FSBO Madison
200
PROVISION OF MERCHANTABLE TITLE: Seller shall pay all costs of providing title evidence. For purposes of closing, title
201
evidence shall be acceptable if the commitment for the required title insurance is delivered to Buyer’s attorney or Buyer not less
202
than 3 business days before closing, showing title to the Property as of a date no more than 15 days before delivery of such title
203
evidence to be merchantable, subject only to liens which will be paid out of the proceeds of closing and standard title insurance
204
requirements and exceptions, as appropriate. CAUTION: BUYER SHOULD CONSIDER UPDATING THE EFFECTIVE DATE OF
205
THE TITLE COMMITMENT PRIOR TO CLOSING OR A “GAP ENDORSEMENT” WHICH WOULD INSURE OVER LIENS FILED
206
BETWEEN THE EFFECTIVE DATE OF THE COMMITMENT AND THE DATE THE DEED IS RECORDED.
207
TITLE ACCEPTABLE FOR CLOSING: If title is not acceptable for closing, Buyer shall notify Seller in writing of objections to title
208
by the time set for closing. In such event, Seller shall have a reasonable time, but not exceeding 15 days, to remove the objections,
209
and the time for closing shall be extended as necessary for this purpose. In the event that Seller is unable to remove said
210
objections, Buyer shall have 5 days from receipt of notice thereof, to deliver written notice waiving the objections, and the time for
211
closing shall be extended accordingly. if Buyer does not waive the objections, this Offer shall be null and void. Providing title
212
evidence acceptable for closing does not extinguish Seller’s obligations to give merchantable title to Buyer.
213
SPECIAL ASSESSMENTS: Special assessments, if any, for work actually commenced or levied prior to date of this Offer shall
214
be paid by Seller no later than closing. All other special assessments shall be paid by Buyer. CAUTION: Consider a special agreement
215
if area assessments, property owner’s association assessments or other expenses are contemplated. “Other expenses” are one-time charges
216
or ongoing use fees for public improvements (other than those resulting in special assessments) relating to curb, gutter, street,
217
sidewalk, sanitary and stormwater and storm sewer (including all sewer mains and hook-up and interceptor charges), parks, street
218
lighting and street trees, and impact fees for other public facilities, as defined in Wis. Stat. §66.55(1)(c) & (f).
219
DELIVERY/RECEIPT Unless otherwise stated in this Offer, any signed document transmitted by facsimile machine (fax) shall be treated
220
in all manner and respects as an original document and the signature of any Party upon a document transmitted by fax shall be
221
considered an original signature. Personal delivery to, or actual receipt by, any named Buyer or Seller constitutes personal delivery to,
222
or actual receipt by Buyer or Seller. Once received, a notice cannot be withdrawn by the Party delivering the notice without the consent
223
of the party receiving the notice. A Party may not unilaterally reinstate a contingency after a notice of a contingency waiver has been
224
received by the other Party. The delivery/receipt provisions in this Offer may be modified when appropriate (e.g., when mail delivery is not desirable
225
(see lines 24 - 30) or when a party will not be personally available to receive a notice (see line 286)). Buyer and Seller authorize the agents of
226
Buyer and Seller to distribute copies of the Offer to Buyer’s lender, appraisers, title insurance companies and any other settlement
227
service providers for the transaction as defined by the Real Estate Settlement Procedures Act (RESPA).
228
DEFAULT Seller and Buyer each have the legal duty to use good faith and due diligence in completing the terms and conditions
229
of this Offer. A material failure to perform any obligation under this Offer is a default which may subject the defaulting party to liability
230
for damages or other legal remedies.
231
If Buyer defaults, Seller may:
232
(1) sue for specific performance and request the earnest money as partial payment of the purchase price; or
233
(2) terminate the Offer and have the option to: (a) request the earnest money as liquidated damages; or (b) direct Broker to
234
return the earnest money and have the option to sue for actual damages.
235
If Seller defaults, Buyer may:
236
(1) sue for specific performance; or
237
(2) terminate the Offer and request the return of the earnest money, sue for actual damages, or both.
238
In addition, the Parties may seek any other remedies availble in law or equity.
239
The Parties understand that the availability of any judicial remedy will depend upon the circumstances of the situation and the
240
discretion of the courts. If either Party defaults, the Parties may renegotiate the Offer or seek nonjudicial dispute resolution instead
241
of the remedies outlined above. By agreeing to binding arbitration, the Parties may lose the right to litigate in a court of law those
242
disputes covered by the arbitration agreement.
243
NOTE: IF ACCEPTED, THIS OFFER CAN CREATE A LEGALLY ENFORCEABLE CONTRACT. BOTH PARTIES SHOULD READ THIS DOCUMENT
244
CAREFULLY. BROKERS MAY PROVIDE A GENERAL EXPLANATION OF THE PROVISIONS OF THE OFFER BUT ARE PROHIBITED BY LAW FROM
245
GIVING ADVICE OR OPINIONS CONCERNING YOUR LEGAL RIGHTS UNDER THIS OFFER OR HOW TITLE SHOULD BE TAKEN AT CLOSING. AN
246
ATTORNEY SHOULD BE CONSULTED IF LEGAL ADVICE IS NEEDED.
247
EARNEST MONEY
248
HELD BY: Unless otherwise agreed, earnest money shall be paid to and held in the trust account of the listing broker (buyer’s
249
agent if Property is not listed or Seller’s account if no broker is involved), until applied to purchase price or otherwise disbursed as
250
provided in the Offer. CAUTION: Should persons other than a broker hold earnest money, an escrow agreement should be drafted by the Parties
251
or an attorney. If someone other than Buyer makes payment of earnest money, consider a special disbursement agreement.
252
DISBURSEMENT: If negotiations do not result in an accepted offer, the earnest money shall be promptly disbursed (after
253
clearance from payor’s depository institution if earnest money is paid by check) to the person(s) who paid the earnest money. At
254
closing, earnest money shall be disbursed according to the closing statement. If this Offer does not close, the earnest money shall
255
be disbursed according to a written disbursement agreement signed by all Parties to this Offer (Note: Wis. Adm. Code s. RL
256
18.09(1)(b) provides that an offer to purchase is not a written disbursement agreement pursuant to which the broker may disburse).
257
If said disbursement agreement has not been delivered to broker within 60 days after the date set for closing, broker may disburse
258
the earnest money: (1) as directed by an attorney who has reviewed the transaction and does not represent Buyer or Seller; (2)
259
into a court hearing a lawsuit involving the earnest money and all Parties to this Offer; (3) as directed by court order; or (4) any
260
other disbursement required or allowed by law. Broker may retain legal services to direct disbursement per (1) or to file an
261
interpleader action per (2) and broker may deduct from the earnest money any costs and reasonable attorneys fees, not to exceed
262
$250, prior to disbursement.
263
LEGAL RIGHTS/ACTION: Broker ’s disbursement of earnest money does not determine the legal rights of the Parties in
264
relation to this Offer. Buyer’s or Seller’s legal right to earnest money cannot be determined by broker. At least 30 days prior to
265
disbursement per (1) or (4) above, broker shall send Buyer and Seller notice of the disbursement by certified mail. If Buyer or
266
Seller disagree with broker’s proposed disbursement, a lawsuit may be filed to obtain a court order regarding disbursement.
267
Small Claims Court has jurisdiction over all earnest money disputes arising out of the sale of residential property with 1-4
268
dwelling units and certain other earnest money disputes. Buyer and Seller should consider consulting attorneys regarding their
269
legal rights under this Offer in case of a dispute. Both Parties agree to hold the broker harmless from any liability for good faith
270
disbursement of earnest money in accordance with this Offer or applicable Deparment of Regulation and Licensing regulations
271
concerning earnest money. See Wis. Adm. Code Ch. RL 18.
272
ENTIRE CONTRACT This Offer, including any amendments to it, contains the entire agreement of the Buyer and Seller regarding
273
the transaction. All prior negotiations and discussions have been merged into this Offer. This agreement binds and inures to
274
the benefit of the Parties to this Offer and their successors in interest.
FSBO Madison
275
PROPERTY ADDRESS:
[page 5 of 5, WB-11]
276
OPTIONAL PROVISIONS: THE PROVISIONS ON LINES 278 THROUGH 317 ARE A PART OF THIS OFFER IF MARKED, SUCH AS WITH AN “X”.
277
THEY ARE NOT PART OF THIS OFFER IF MARKED N/A OR ARE LEFT BLANK (EXCEPT AS PROVIDED AT LINES 280 - 281).
278
SALE OF BUYER’S PROPERTY CONTINGENCY: This offer is contingent upon the sale and closing of Buyer’s property
279
located at
, no later than
280
. Seller may keep Seller’s Property on the market for sale and accept secondary offers. If this contingency is
281
made a part of this Offer, lines 282 - 286 are also a part of this offer unless marked N/A at line 282 or otherwise deleted.
282
CONTINUED MARKETING: If Seller accepts a bona fide secondary offer, Seller may give written notice to Buyer of
283
acceptance. If Buyer does not deliver to Seller a written waiver of sale of Buyer’s property contingency and
284
[INSERT OTHER
285
REQUIREMENTS, IF ANY (e.g., PAYMENT OF ADDITIONAL EARNEST MONEY, WAIVER OF ALL CONTINGENCIES, OR PROVIDING
286
EVIDENCE OF SALE OR BRIDGE LOAN, etc.)] within
hours of Buyer’s actual receipt of said notice, this Offer shall be null and void.
287
SECONDARY OFFER: This Offer is secondary to a prior accepted offer. This Offer shall become primary upon delivery of
288
written notice to Buyer that this Offer is primary. Unless otherwise provided, Seller is not obligated to give Buyer notice prior to any
289
deadline, nor is any particular secondary buyer given the right to be made primary ahead of other secondary buyers. Buyer may
290
declare this Offer null and void by delivering written notice of withdrawal to Seller prior to delivery of Seller’s notice that this Offer
291
is primary. Buyer may not deliver notice of withdrawal earlier than
days after acceptance of this Offer. All other Offer
292
deadlines which are run from acceptance shall run from the time this Offer becomes primary.
293
PRE/POST CLOSING OCCUPANCY: Occupancy of
shall be
294
given to Buyer on
at
am/pm. (Seller)(Buyer) STRIKE ONE shall pay an
295
occupancy charge of $
per day or partial day of pre/post-closing occupancy. Payment shall be due at the beginning of the
296
occupancy period. Any unearned post closing occupancy fee (shall)(shall not) STRIKE ONE be refunded based on actual occupancy.
297
CAUTION: Consider a special agreement regarding occupancy, escrow, insurance, utilities, maintenance, keys, etc.
298
INSPECTION CONTINGENCY: This Offer is contingent upon a Wisconsin registered home inspector performing a home
299
inspection of the Property, and an inspection, by a qualified independent inspector, of
300
which discloses no defects as defined below. This contingency
301
shall be deemed satisfied unless Buyer, within
days of acceptance, delivers to Seller, and to listing broker if Property is
302
listed, a copy of the inspector’s written inspection report(s) and a written notice listing the defect(s) identified in the inspection
303
report(s) to which Buyer objects. CAUTION: A proposed amendment will not satisfy this notice requirement. Buyer shall order
304
the inspection and be responsible for all costs of inspection, including any inspections required by lender or as follow-up inspections to
305
the home inspection. Note: This contingency only authorizes inspections, not testing. (See lines 97 - 110.)
306
RIGHT TO CURE: Seller (shall)(shall not) STRIKE ONE have a right to cure the defects. (Seller shall have a right to cure if no choice is indicated.)
307
If Seller has right to cure, Seller may satisfy this contingency by: (1) delivering a written notice within 10 days of receipt of Buyer’s notice of Seller’s election
308
to cure defects, (2) curing the defects in a good and workmanlike manner and (3) delivering to Buyer a written report detailing the work done no later than
309
3 days prior to closing. This Offer shall be null and void if Buyer makes timely delivery of the above notice and report and: (1) Seller does not have a right
310
to cure or (2) Seller has a right to cure but: a) Seller delivers notice that Seller will not cure or b) Seller does not timely deliver the notice of election to cure.
311
“DEFECT” DEFINED: For the purposes of this contingency, a defect is defined as a structural, mechanical or other condition
312
that would have a significant adverse effect on the value of the Property; that would significantly impair the health or safety of future
313
occupants of the Poperty; or that if not repaired, removed or replaced would significantly shorten or have a significant adverse
314
effect on the expected normal life of the Property. Defects do not include structural, mechanical or other conditions the nature and
315
extent of which Buyer had actual knowledge or written notice before signing this Offer.
316
ADDENDA: The attached
is/are made part of this Offer.
317
ADDITIONAL PROVISIONS/CONTINGENCIES
318
319
320
321
This Offer was drafted on
[date] by [Licensee and firm]
.
322
(x)
323
Buyer’s Signature
Print Name Here:
Social Security No. or FEIN
Date
324
(x)
325
Buyer’s Signature
Print Name Here:
Social Security No. or FEIN
Date
326
EARNEST MONEY RECEIPT Broker acknowledges receipt of earnest money as per line 8 of the above Offer. (See lines 247 - 271.)
327
Broker (By)
328
SELLER ACCEPTS THIS OFFER. THE WARRANTIES, REPRESENTATIONS AND COVENANTS MADE IN THIS OFFER
329
SURVIVE CLOSING AND THE CONVEYANCE OF THE PROPERTY. SELLER AGREES TO CONVEY THE PROPERTY ON
330
THE TERMS AND CONDITIONS AS SET FORTH HEREIN AND ACKNOWLEDGES RECEIPT OF A COPY OF THIS OFFER.
331
(x)
332
Seller’s Signature
Print Name Here:
Social Security No. or FEIN
Date
333
(x)
334
Seller’s Signature
Print Name Here:
Social Security No. or FEIN
Date
335
This Offer was presented to the Seller by
on
,
, at
a.m./p.m.
336
THIS OFFER IS REJECTED
THIS OFFER IS COUNTERED [See attached counter]
337
Seller Initials
Date
Seller Initials
Date
FSBO Madison
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Download Form WB-11 "Residential Offer to Purchase - Chicago Title Insurance Company" - Madison, Wisconsin

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