Appendix B
Important Forms
This appendix includes the basic forms that you will need to get started in real estate investing. Included are a sample purchase agreement, residential lease agreement, and rental application. Please note that these forms are intended for educational purposes only. Because real estate laws vary by state, it would be impossible to produce a form that would be suitable for use everywhere. You should approach your local apartment association or a real estate attorney about obtaining the proper forms and contracts for your actual use.
PURCHASE AGREEMENT
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The purchase price to be paid as follows:
1. EARNEST MONEY. Earnest money shall be deposited with a licensed title company or a mutually agreeable attorney within 72 hours of acceptance by Seller.
2. FINANCING. The Buyer shall (obtain new financing) (assume existing financing) (strike one) as described below:
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OTHER CONTRACT TERMS
1. ACCEPTANCE: This offer is binding only if an accepted copy of this offer is delivered to the Buyer by
2. PRORATIONS AND SECURITY DEPOSITS: Loan interest, property taxes, property owner’s association assessments, insurance, rents, utilities, and fuel shall be prorated as of the date of closing. All security deposits shall be transferred to buyer at closing.
3. PROPERTY CONDITION: Seller warrants and represents to Buyer that Seller has no notice or knowledge of any conditions adversely affecting the Property or this Transaction, including:
a. Public Improvements. Improvements planned or commenced which may result in a special assessment or may otherwise materially affect the Property or its present use.
b. Repair Orders. Repair orders issued by government agencies or court order.
c. Reassessment. Pending or contemplated reassessment of the Property for property tax purposes.
d. Land Divisions. Any land divisions of the subject property for which required approvals had not been obtained.
e. Adverse Conditions. Conditions adversely affecting the cost of building on the subject property including, but not limited to, unstable fill, subsurface foundations, rock or low load bearing capacity, disposal or dumping on the Property of toxic or hazardous materials, or high water table.
f. Storage Tanks. Underground storage tanks (USTs) or aboveground storage tanks (ASTs) on the Property for storage of flammable or combustible liquids or materials including but not limited to gasoline, heating oil or similar substances which are currently or which were previously located on the subject property.
g. Use. Violation of any laws regarding or regulating the use of the Property.
h. Environmental laws. Violation of any environmental laws regarding the Property.
i. Systems Not Serving the Property. Septic tanks, cisterns, 100 KV or higher high voltage electric, steel natural gas lines, or similar systems on the Property that do not service the Property.
j. Flood Plain, Shoreland, or Wetland. Any portion of the subject property being in a shoreland zoning area, wetland, or 100 year floodplain, according to any government laws.
k. Appliances and Mechanical Systems. Appliances or mechanical systems not in good working order.
l. Other Adverse Conditions. Any other adverse condition constituting a health or safety hazard at the Property which would materially and adversely impact the value of the subject property to a reasonable person with knowledge of the kind and type of the condition or circumstance.
4. INSPECTIONS: This offer is subject to the following inspections:
a. Environmental Inspection. This offer is contingent upon Buyer obtaining a satisfactory expert opinion disclosing no defects regarding the environmental integrity of the Property.
b. Property Inspection. This offer is contingent upon Buyer obtaining a satisfactory expert opinion(s) disclosing no defects regarding the Property.
This contingency shall be deemed satisfied unless Buyer within ____days of acceptance files a written notice objecting to any conditions or defects discovered during the inspections.
5. CLOSING: This transaction shall close on or before ___, 20_. Closing will be held at ________.
6. TITLE: Seller(s) agrees to provide marketable title free and clear of all encumbrances except as outlined in this agreement and pay any required transfer taxes to record the deed and mortgage. Seller agrees to furnish title insurance in the amount of the purchase price, showing no encumbrances or exceptions other than those outlined in this agreement.
7. LEAD PAINT: Property built before 1978 may contain lead based paint. Buyer and Seller should enter into a separate Lead Base Paint disclosure agreement and Seller should provide Buyer with a copy of the government pamphlet Protecting Your Family From Lead In Your Home if the Property was built prior to 1978.
8. PROPERTY MAINTENANCE / DAMAGE: Seller shall maintain the Property until closing in materially the same condition as of the date of acceptance, excepting ordinary wear and tear. If the Property is damaged before closing in an amount less than 5% of the purchase price, Seller shall restore the Property and return it to materially the same condition that it was on the date of acceptance. If the damage exceeds 5% of the purchase price, Seller shall notify Buyer in writing of the damage and this Offer may be withdrawn by the Buyer. If withdrawn as described herein, all earnest money paid by the Buyer shall be refunded to the Buyer. Should Buyer elect to proceed with the purchase despite damage exceeding 5% of the purchase price, the Seller shall either: (1) return the subject property to the same material condition existing prior to the date of acceptance of this offer, excepting ordinary wear and tear OR (2) The Buyer shall be the beneficiary of any insurance proceeds awarded relating to the property damage, in addition to a credit at closing in the amount of the deductible on the Seller’s insurance policy.
9. DEFAULT: If the Buyer defaults under this contract, all monies deposited by the Buyer(s) shall be retained by the Seller as full liquidated damages. If the Seller defaults, the Buyer may pursue all remedies allowed by law and Seller agrees to be responsible for all costs incurred by Buyer as a result of Seller’s default.
10. SUCCESSORS AND ASSIGNEES: The terms and conditions of this agreement shall bind all successors, assignees, heirs, administrators, trustees, and executors of the respective parties.
11. ADDITIONAL CONDITIONS AND TERMS:
12. NOTICES: All notices of any kind as described in this Offer shall be in writing and shall be delivered to the parties by facsimile, by hand, or by United States Mail with postage pre-paid, or by any other recognized commercial carrier. Such notices shall be deemed to have been served on the date faxed or mailed, delivery charges or postage pre-paid. All such notices shall be addressed as follows:
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RESIDENTIAL LEASE AGREEMENT
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ADDITIONAL LEASE PROVISIONS
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RULES & REGULATIONS
These Rules & Regulations are an additional inclusion for the Lease Agreement and may be amended by the Lessor as necessary.
1. Personal Property. Personal property left in common areas may be disposed of by Lessor without further notice.
2. Play Areas. Skating, skateboarding and chalk use is not permitted anywhere on the premises.
3. Neighbors. Lessee(s) are responsible for the conduct of their guests in all areas of the premises. The sound level from TV’s, and other audio equipment must not be objectionable to other residents. Minors are to be supervised at all times. Playing in interior common areas is prohibited.
4. Parking Rules. No vehicle storage is allowed. Park only in designated resident and guest parking areas. All vehicles must display current license plates and be moved on a regular basis. No commercial vehicles, recreational vehicles, or trailers are permitted in the parking lots.
5. Fire Lane. Vehicles or bicycles are not permitted in any fire-lane or entry walkways at any time.
6. Security Deposits. Lessee(s) are responsible for the exchange of any security deposits between one or more Lessee if the premise remains occupied.
7. Alterations. Any alterations to premises, including but are not limited to, painting, stenciling, wallpapering, shelf papering, hooks and hangers, anchors, adhesive hangers, non-slip tub decals, stickers, tape and large nails are not permitted without prior written permission from Lessor. Nothing may be attached to the exterior of a building or any interior woodwork or laminated surfaces. Lessor shall without further notice remove any items at Lessee(s) expense if prior written approval was not obtained. All improvements are to inure to the benefit of Lessor unless otherwise stated in writing. Lessee(s) will not alter, change, or install any item that may affect the insurance coverage, create a safety hazard or building code violation, or endanger the premise in any way. Lighting will only have the proper wattage bulbs placed in them.
8. Wiring Changes. Any additional wiring or other connections to the premise must have prior written consent of Lessor. Alterations will be made according to Lessor instructions for the benefit of the Lessor at the Lessee(s) expense, including maintenance and operation. Lessee(s) will not interfere with any part of the building or any mechanical or electrical system. Lessor shall remove, at Lessee(s) expense, any item attached or installed without prior written consent of Lessor. Installations will become the property of Lessor upon vacating unless otherwise provided. Lessor may require that the building be restored to the original condition at Lessee(s) expense. Lessee(s) will not allow any liens to be attached to the property
9. Patios / Balconies / Decks. Only patio furniture in good condition will be allowed on patios and balconies and no other items. Wind chimes and bird feeders are not permitted.
10. Quiet Hours. Quiet hours are from 9:00 PM to 9:00 AM daily.
11. Vehicles. Vehicle leaks or damage to any surface from a vehicle shall be the Lessee(s) liability. Improperly parked vehicles will be towed at the owner’s expense with or without notice to the owner. Vehicle maintenance is not permitted in any parking lots.
12. Smoke Detectors. Lessee will maintain smoke detector batteries in operating condition at all times.
13. Condition. Lessee will keep premises in a clean and tenantable condition and in as good a repair as at the beginning of the lease term, excepting normal wear and tear. Smoke stains, burns and odors are not ordinary wear and tear.
14. Notification. Lessee(s) will inform Lessor in writing of any changes in vehicles, home phone, cell phone, employer and work phone, or emergency contacts.
15. Locks. Neither party shall add or change locks without prior written permission from both parties and must provide the other party with keys to the premises. Denial of access is a breach of the lease.
16. Satellite Dishes. Satellite dishes cannot be attached to the building, and wires will not be bored through the premises without written notice from Lessor prior to any installation.
17. Entry doors. Entry doors and all other doors will remain closed when not in use. Do not slam any door.
18. Laundry room. Remove laundry from the equipment in a timely manner. Clean the lint trap after each use of the dryer. Clean up any spilled laundry detergent or other mess. Smoking or loud music is not permitted. Do not overload the equipment or the user may be held liable for any damages.
19. Insurance. Lessor’s insurance policy does not provide coverage for any Lessee(s) personal property. Lessee(s) should obtain rental insurance coverage.
20. Additional Rules. In order to insure the ongoing quiet enjoyment of the premises, Lessor shall maintain the right to make other reasonable rules and regulations as Lessor may deem necessary. Upon notice of such rules, these additional rules shall have the same effect as if originally a part of this Lease.
21. Mail and Packages. If available, as a courtesy, the on site manager may accept packages from US Mail or other commercial carriers for residents who are not at home. No promise is made to be present to accept packages. Lessor is not responsible for any missing or damaged packages.
22. Combustible materials. Combustible materials shall not to be stored anywhere on the premises
23. Identification. Lessor reserves the right to demand Resident identification at any time while on the premises.
24. Garage Sales. Lessee shall not conduct garage, rummage or yard sales of any kind on any part of the premises at any time.
 
Lessee has read the rules and agrees to abide by the Rules and Regulations listed above.
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ET ADDENDUM
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RENTAL APPLICATION
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