Home Buyer Resource Guide 2022 by Churchill Properties

Home Buyer Resource Guide

Table of Contents

Welcome to the Churchill Properties' Home Buyer Resource Guide

Your Churchill Properties Sales Professional as your Buyer’s Agent

Home Ownership – An Overview of the Transaction

Financing your Purchase – Pre-approval for a Mortgage Loan

Financing your Purchase – Loan Types/Buyer Costs

How Much Can you Afford?

Defining your Real Estate Needs and Desires – Picture your Dream House!

Researching and Touring Properties – Viewing Homes, Lead Paint

10.

The Offer to Purchase and Negotiating the Sale

11.

The Home Inspection / The Purchase & Sale Agreement

12.

Closing and Preparation Costs

Congratulations on your decision to purchase a new home! We at Churchill Properties have the experience and resources to help make your home purchase exciting and enjoyable. The Churchill Properties' Home Buyer Resource Guide is one of the many resources we provide to Home Buyers to help them navigate through the journey finding, financing, and buying a new home. You’ll find interesting information and worksheets that will prepare you for this exciting adventure.

Churchill Properties Sale Associate__________________________________________________________ Churchill Properties Associate Email ________________________________________________________ Churchill Properties Associate Mobile Telephone: ______________________________________________

Your Churchill Properties Sales Professional as your Buyer’s Agent When you choose a Churchill Properties professional to represent you as your Buyer’s agent you can be confident that they are well-trained, know the laws and technical aspects of real estate practice, and that they will work diligently to meet your needs and protect your interests. As your Buyer’s Agent, your Churchill Properties sales professional will use their market knowledge, skills, and experience to assist you in securing the best price and terms for your desired property. Your Churchill Properties Buyer’s Agent will:

• • • • • • • • •

Listen to your needs and answer your questions Assist in defining your real estate needs and desires Inform you regarding the current market conditions Describe the home buying process and familiarize you with the standard contracts utilized Assist you with financing options for purchasing your home Help you research, find, and tour appropriate properties Professionally value properties of interest using a comparable market analysis Prepare an offer to purchase and negotiate the best price and terms for you Keep you informed throughout the process and provide professional advice at each step

Home Ownership – An Overview of the Transaction 1.

Pre-approve for a mortgage loan. (1-3 days)

Define your real estate needs and desires. (1-3 days)

Review properties online, tour/visit properties. (Typically 1-12 weeks)

Prepare and submit an offer on your desired property. Your associate will prepare a comparative market analysis to estimate the home’s value and will recommend an offer price. The offer form is usually accompanied with a first deposit in the amount of $500-$1000.

Negotiate the sale with the Sellers through your Buyer’s Agent and the Listing Broker.

Hire a professional home inspector and conduct a home inspection. (3-7 days after accepted offer)

Prepare and sign the Purchase and Sale Agreement. (7-14 days after accepted offer) A second deposit is normally paid upon execution of the Purchase and Sale Agreement. This is most typically 5% of the purchase price, less the amount of the first deposit.

Submit a mortgage application. (7-14 days after accepted offer)

Loan processing/Appraisal/Commitment from Lender. (14-21 days from application)

10.

Closing preparation by the Closing Attorney including a title search and document preparation. (7-14 days prior to closing)

11.

Notify utility companies of closing date to disconnect Seller/reconnect with Buyers – Natural Gas, Electric, Telephone, Cable, and Internet. (7-14 days prior to closing)

12.

Buyer final property visit and review. (1 day prior to closing)

13.

Closing of the transaction – It’s your home! (45-60 days from accepted offer)

Financing your Purchase The majority of Home Buyers, typically 85% - 90%, finance a portion of their home purchase using a mortgage. The mortgaging process involves two primary documents given from the Buyer (Mortgagor) to the Lender (Mortgagee) at closing including the promissory note and the mortgage. The promissory note describes the terms of the loan including the loan amount, interest rate, and the time period of repayment. The mortgage pledges the property as security for the note. Pre-Approving for a Mortgage Loan An important first step in the process of buying a home is to obtain a pre-approval letter from one or more lenders. A mortgage pre-approval is a process in which a lender reviews your financial status and issues a letter indicating the maximum loan amount they will provide you and basic terms of the loan. There are several benefits to obtaining a pre-approval from a lender including: 1. 2. 3.

Determining the highest loan amount you qualify to borrow Reducing the time needed to process a loan after a desirable property is located Providing written assurance to the Seller of your ability to finance the purchase which improves the acceptability of your offer

Lender’s guidelines vary as to the amount they will lend to any particular borrower based on income, credit score, long term debt, and the amount of cash paid toward the purchase price at closing, known as the down payment. There is typically no cost to the Buyer for the pre-approval process. The lender will ask you to submit: 1. 2. 3. 4. 5. 6. 7.

Basic personal information A credit authorization Federal tax returns from the previous 2 years IRS W2 forms for the previous 2 years Bank statements for each of the prior 2 months Income paycheck details for the previous 30 days Details on any outstanding long-term debt such as credit cards, auto loans, student loans, etc.

Financing your Purchase What Type of Loan is Right for you? •

A 15 or 30 year, Fixed loans – These feature a fixed interest rate and a fixed monthly payment over 15 or 30 years

•

An Adjustable Rate Mortgage (ARM) with 1, 5, or 7 year adjustment periods – These loans begin with a relatively low interest rate and adjust to a market interest rate at each period interval, changing the monthly payment with each adjustment

•

A Construction Loan – A construction loan disburses funds to a builder over the course of construction

•

A Balloon Mortgage – This is an interest only loan with the principal paid in full at the end of the loan period

Borrower/Buyer Costs for Processing the Loan There are several costs of obtaining a mortgage loan which are charged to the borrower at closing including: an appraisal $300-$600, credit report(s) $25 per person, lender title insurance $2.50 $2.75 per $1,000 of mortgage loan, closing attorney fee $500-$700, document recording fees $300, prepaid homeowners insurance (1 year) $600-$1,200, tax escrows – 3 to 6 months of property taxes, and a title search $200. In addition, Lenders require that you have bank reserves in the amount of two monthly housing payments in the bank at the time of closing. Additional costs may include lood insurance and private mortgage insurance. Flood insurance is required i the property lies in a lood zone. Private Mortgage Insurance or PMI is required if the amount borrowed is more than 80% of the appraised value. The cost of PMI varies based on the percentage of the purchase price at closing and the loan amount. PMI is normally paid monthly over the life of the loan.

How Much Can you Afford? Completing the chart below will provide an indication of your affordable price range. Please note this is a guideline only and the amount will be lower if you have substantial additional long-term debt such as credit cards, auto loans, and student loans. To more precisely determine your affordable price range, obtain a pre-approval from a reputable lender.

Annual Income

Divide A by 12

Monthly Allowable Payment Multiply B x .40

Monthly Est Property Tax ($300-$800)

C minus D

Interest Rate

Cost/$1000 of Loan

1.50%

$3.50

1.75%

$3.60

2.00%

$3.70

2.25%

$3.80

2.50%

$4.00

Monthly Property Insurance ($100$300)

2.75%

$4.10

3.00%

$4.20

E minus F

3.25%

$4.40

Current Interest Rate

3.50%

$4.50

Cost/$1000 interest Rate From Chart at right of page

3.75%

$4.60

4.00%

$4.80

Divide G by I and multiply by 1000. Mortgage Amount

4.25%

$4.90

Amount of Down Payment

4.50%

$5.10

House Price Add J + K

As a final note, one of the most important steps in determining the amount of loan to obtain is to assess the impact of the monthly payment on your financial circumstances and lifestyle. Your ability to qualify for a certain loan amount does not necessarily mean that the monthly payment will be comfortable for you.

Defining your Real Estate Needs and Desires Picture your Dream Home! What’s important to you in your new home? As you consider your needs you will quickly realize that there are many variables involved in the home buying decision. Choosing and prioritizing the home features that are most important to you will help minimize the time and effort required to find the best home for your needs.

Feature/ Variable

Comments - Likes/Dislikes

Price Range

minimum/maximum

Monthly Payment

M aximum

Towns/Cities Distance to Employment Location/Distance Other Public Schools

shopping, police/fire, daycare, schools, transportation

Ranking, performance

Neighborhood Property Type

Single family/Condo/Multi-Family

House Style

Colonial, Ranch, Split Entry, Contemporary, Garden, Townhome

Property Age

New construction, historic

Total Living Area Sq. Ft. Yard Size/Land Bedrooms

Number, size

Bathrooms

Number

Garage

Required, number

Living room Dining room Family room Kitchen

Features, location, size

Other Property Features

Waterfront, View, Pool, Central Air

Importance 1-5 5=Very Important

Priority Ranking 1 - 15

Researching and Touring Properties There are several real estate websites that provide complete information on all available homes such as ChurchillProp.com. Our online property listings include multiple photographs, video, mapping, and property information. When you register on the site and input your search criteria, you will be automatically alerted by email on each new listing that fits your needs. Viewing Homes Properties are viewed either by appointment scheduled through your Churchill Properties Sales Associate or by attending an open house. At the beginning of your search you will likely want to tour several potential homes and your Churchill Properties Sales Associate will prepare an efficient tour, typically including four to six properties, based on geography and time available. A typical home viewing takes approximately thirty minutes and appointments are usually scheduled in succession. If you are attending an open house, let the hosting agent know that you are working with Churchill Properties and note it on the sign in sheet. Generally, the Seller is not home during the showing and the property will be accessed by your Churchill Properties Sales Associate through the use of a secure key lock box attached to the door. With some properties, the Listing Broker will also attend the showing and will show you and your Churchill Properties Sales Associate through the property. As you tour each property, take note of the features included relative to your list of priorities. Lead Paint Properties built prior to 1978 may contain lead paint. Lead paint can potentially cause serious illness if ingested, particularly by children. There are both Federal and State laws regarding disclosure and the treatment of lead paint. For more information, please visit the website: http://www.mass.gov/dph/clppp

The Offer to Purchase and Negotiating the Sale You have found the right home and would like to buy it. Your Churchill Properties Sales Associate will assist you by providing a professional opinion of value and preparing a standard offer to purchase form. The forms contain the following terms of the offer: 1.

The purchase price offered

The amount of an initial deposit delivered with the offer, usually $500 to $1,000

The amount and timing of a second deposit which is usually delivered with the signed Purchase and Sale Agreement in the amount of five percent of the total purchase price less the initial deposit

The time at which the offer expires and is no longer valid

A provision for signing a more detailed Purchase and Sale Agreement by a particular time which is normally 10 to 14 days after acceptance of the offer

The date and time for closing the sale which is typically 45 to 60 days from date of accepted offer

An escrow clause authorizing a third party to hold the deposits as escrow broker. This is usually held by the Listing Firm

A financing contingency which provides time, normally 25 to 35 days from offer acceptance, for the Buyer to obtain a commitment for financing from a lender

A home inspection contingency allowing a time period to conduct inspections, usually 10 days, and provision for remedy if the Buyer is not satisfied with the results of the inspections

Also the offer form notes “Time is of the essence” which means all dates and times included in the offer are inflexible and it is necessary to strictly adhere to the dates and times indicated. After preparing your offer with you, your Churchill Properties Sales Associate will submit your offer, with pre-approval letter and initial deposit, to the Listing Broker and/or Seller. Negotiating the Sale – Negotiations between the Buyer and Seller are conducted through the broker or brokers. Upon receipt of the offer, the Seller has the option to accept the offer, reject the offer, or propose a counter offer. Negotiations will continue until mutually acceptable terms are agreed upon, or until the parties choose to discontinue negotiations.

Loan Application/The Appraisal Many Home Buyers research the interest rates and terms of several lenders soon after placing a property under agreement. A loan application is usually submitted 7 – 14 days after offer acceptance. If you have pre-approved with your lender there will be minimal additional documentation required. The Appraisal – Upon receipt of your completed application and required documentation, your lender will order an appraisal of the property. The appraisal is a valuation of the property and is required by the Lender as the property is the security for the note. It is performed by a licensed appraiser who will provide a written report and opinion of value for the property.

Closing Preparation/Closing the Sale After successful processing of your loan, the lender will issue a commitment letter to you indicating their intention to fund your loan. They will then choose an attorney to perform a title search and prepare the necessary documents required to close the loan. You may suggest a closing attorney of your choosing. Establish Utility Accounts – As the Buyer it is important to establish accounts with utility and other service providers for the property 7 – 14 days prior to closing including natural gas (if applicable) and electric service and additionally, if desired, internet service, cable television, and telephone. Final Property Visit and Review – Immediately prior to closing it is recommended that the Buyer have a final property visit and review. This usually occurs either the day before or the day of the closing. It provides an opportunity for the Buyer to verify that the property is in a similar condition as at the time of purchase and that all possessions of the Sellers have been removed. If deficiencies are discovered in this process they are typically addressed at closing. The Closing of the Sale – You, as the Buyer, will be notified by the closing attorney of the place and time for the closing and the amount and form of funds needed from you to close, as well as other documentation such as your drivers license and an insurance binder Your Churchill Properties Sales Associate, or another Churchill Properties representative, will attend the closing with you.

Commonwealth of Massachusetts BOARD OF REGISTRATION OF REAL ESTATE BROKERS AND SALESPERSONS www.mass.gov/dpl/boards/re MASSACHUSETTS MANDATORY REAL ESTATE LICENSEE-CONSUMER RELATIONSHIP DISCLOSURE THIS IS NOT A CONTRACT This disclosure is provided to you, the consumer, by the real estate licensee listed in this disclosure. THE TIME WHEN THE REAL ESTATE LICENSEE MUST PROVIDE THIS NOTICE TO THE CONSUMER: All real estate licensees must present this form to you at the first personal meeting with you to discuss a specific property. In the event this relationship changes, an additional disclosure must be provided and completed at that time.

CONSUMER INFORMATION AND RESPONSIBILITY: If you are a buyer or seller, you can engage a real estate licensee to provide advice, assistance and representation to you as your agent. The real estate licensee can represent you as the seller (Seller's Agent) or represent you as the buyer (Buyer's Agent), or can assist you as a Facilitator. All real estate licensees, regardless of the working relationship with a consumer must, by law, present properties honestly and accurately, and disclose known material defects in the real estate. The duties of a real estate licensee do not relieve consumers of the responsibility to protect their own interests. If you need advice for legal, tax, insurance, zoning, permitted use, or land survey matters, it is your responsibility to consult a professional in those areas. Real estate licensees do not and cannot perform home, lead paint, or insect inspections, nor do they perform septic system, wetlands or environmental evaluations. Do not assume that a real estate licensee works solely for you unless you have an agreement for that relationship.

For more detailed definitions and descriptions about real estate relationships, please see page 2 of this disclosure.

THE SELLER OR BUYER RECEIVING THIS DISCLOSURE IS HEREBY ADVISED THAT THE REAL ESTATE LICENSEE NAMED BELOW IS WORKING AS A: Check one:

 Seller's agent

 Buyer's agent

 Facilitator

If seller’s or buyer’s agent is checked above, the real estate licensee must complete the following section: Check one:

 Non-Designated Agency The real estate firm or business listed below and all other affiliated agents are also working as the agent of the  Seller  Buyer

 Designated Agency Only the licensee named herein represents the  Seller  Buyer (designated seller agency or designated buyer agency). In this situation any other agents affiliated with the firm or business listed below do not represent you and may represent another party in your real estate transaction.

By signing below, I, the real estate licensee, acknowledge that this disclosure has been provided to the consumer named herein:  Broker  Salesperson Signature of Real Estate Licensee

Printed Name of Real Estate Licensee

Name Real Estate Brokerage Firm

Brokerage Firm Real Estate License #

Signature of Consumer

Printed Name of Consumer

Signature of Consumer

Printed Name of Consumer

Today’s Date

License #

 Buyer  Seller Today’s Date  Buyer  Seller Today’s Date

 Check here if the consumer declines to sign this notice. Last Revised: January 24, 2017

Form 705

TYPES OF AGENCY REPRESENTATION SELLER'S AGENT A seller can engage the services of a real estate licensee to act as the seller’s agent in the sale of the seller’s property. This means that the real estate agent represents the seller, who is a client. The agent owes the seller client undivided loyalty, reasonable care, disclosure, obedience to lawful instruction, confidentiality and accounting. The agent must put the seller's interests first and attempt to negotiate price and terms acceptable to their seller client. The seller may authorize sub-agents to represent him/her in marketing its property to buyers, however the seller should be aware that wrongful action by the real estate agent or sub-agents may subject the seller to legal liability for those wrongful actions. BUYER'S AGENT A buyer can engage the services of a real estate licensee to act as the buyer’s agent in the purchase of a property. This means that the real estate agent represents the buyer, who is a client. The agent owes the buyer client undivided loyalty, reasonable care, disclosure, obedience to lawful instruction, confidentiality and accounting. The agent must put the buyer's interests first and attempt to negotiate price and terms acceptable to their buyer client. The buyer may also authorize sub-agents to represent him/her in purchasing property, however the buyer should be aware that wrongful action by the real estate agent or sub-agents may subject the buyer to legal liability for those wrongful actions. (NON-AGENT) FACILITATOR When a real estate licensee works as a facilitator that licensee assists the seller and/or buyer in reaching an agreement but does not represent either the seller or buyer in the transaction. The facilitator and the broker with whom the facilitator is affiliated, owe the seller and buyer a duty to present all real property honestly and accurately by disclosing known material defects and owe a duty to account for funds. Unless otherwise agreed, the facilitator has no duty to keep information received from a seller or buyer confidential. Should the seller and/or buyer expressly agree, a facilitator relationship can be changed to a seller or buyer client relationship with the written agreement of the person so represented. DESIGNATED SELLER'S AND BUYER'S AGENT A real estate licensee can be designated by another real estate licensee (the appointing or designating agent) to represent a buyer or seller, provided the buyer or seller expressly agrees to such designation. The real estate licensee once so designated is then the agent for that buyer or seller who becomes the agent’s client. The designated agent owes the buyer client or seller client, undivided loyalty, reasonable care, disclosure, obedience to lawful instruction, confidentiality and accounting. The agent must put their client's interests first, and attempt to negotiate price and terms acceptable to their client. No other licensees affiliated with the same firm represent the client unless otherwise agreed upon by the client. In situations where the appointing agent designates another agent to represent the seller and an agent to represent the buyer in the same transaction, then the appointing agent becomes a dual agent. Consequently, a dual agent cannot fully satisfy the duties of loyalty, full disclosure, obedience to lawful instructions, which is required of a seller or buyer agent. Only your designated agent represents your interests. Written consent for designated agency must be provided before a potential transaction is identified, but in any event, no later than prior to the execution of a written agreement for purchase or sale of residential property. The consent must contain the information provided for in the regulations of the Massachusetts Board of Registration of Real Estate Brokers and Salespeople (Board). A sample consent to designated agency is available at the Board's website at www.mass.gov/dpl/re. DUAL AGENT A real estate licensee may act as a dual agent representing both the seller and the buyer in a transaction but only with the express and informed written consent of both the seller and the buyer. A dual agent shall be neutral with regard to any conflicting interest of the seller and buyer. Consequently, a dual agent cannot satisfy fully the duties of loyalty, full disclosure, obedience to lawful instructions, which is required of a seller or buyer agent. A dual agent does, however, still owe a duty of confidentiality of material information and accounting for funds. Written consent for dual agency must be provided before a potential transaction is identified, but in any event, no later than prior to the execution of a written agreement for purchase or sale of residential property. The consent must contain the information provided for in the regulations of the Massachusetts Board of Registration of Real Estate Brokers and Salespeople (Board). A sample consent to dual agency is available at the Board's website at www.mass.gov/dpl/re. Last Revised: January 24, 2017

Form 705

EXCLUSIVE BUYER AGENCY AGREEMENT [With Consent To Designated Agency and Consent To Dual Agency]

This Exclusive Buyer Agency Agreement is made between (“BUYER”) and In consideration of the mutual promises set forth below, BUYER and BROKER agree as follows:

(“BROKER”).

1. Exclusive Buyer Agency. BUYER grants to BROKER the exclusive right to locate or procure real property acceptable for purchase/lease by BUYER. BUYER further agrees to refer all potentially acceptable real property to BROKER during the term of this Agreement and agrees to notify all other real estate agents who communicate with BUYER of BROKER'S exclusive agency relationship with BUYER. The final decision whether or not a property is acceptable for purchase shall be solely within the discretion of BUYER. 2. Term Of Agency. The term of this Agreement shall be from , to , unless extended verbally or in writing or terminated by completion of the purpose or by agreement.

3. Broker's Services/Duties. BROKER agrees to use reasonable efforts to locate real property acceptable to BUYER and to assist BUYER to negotiate terms and conditions of a contract acceptable to BUYER for the acquisition of the real property (the "Contract"). The Contract may consist of an accepted offer, purchase and sale agreement, option, deed, exchange agreement, lease or similar instrument. BROKER agrees to assist in locating properties, arrange showings, analyze financing alternatives, give advice concerning real estate practices and procedures, assist in negotiations, arrange inspections requested by BUYER and coordinate activities throughout the process. BUYER agrees that such services do not constitute a guarantee or warranty concerning any real property. BUYER agrees that BROKER has not been retained as an attorney, inspector, home inspector, pest/termite inspector, septic inspector, surveyor or to determine the condition of the real property and has not been retained to provide legal advice, to provide an opinion concerning lawfulness of current or anticipated uses, to perform a title search or to act as a mortgage broker. BUYER agrees that BROKER shall have no duty to disclose any matter or condition outside the boundaries of the real property being considered for purchase, including, but not limited to, present conditions and anticipated changes in the neighborhood where the property is located. BROKER recommends that an attorney and other professionals be hired for such services as BUYER deems appropriate and that BUYER personally investigate particular matters which may be of importance, including, but not limited to, neighborhood composition, the level of crime and presence of sex offenders. BROKER agrees to preserve confidential information of BUYER, making disclosure of confidential information solely to the extent necessary to establish BUYER'S financial qualifications. BROKER represents that BROKER is duly licensed as a real estate broker by the Commonwealth of Massachusetts. BUYER is advised that sellers or sellers' representatives are not required to treat the existence, terms or conditions of an offer as confidential, unless a confidentiality agreement has been made with the seller before submission of an offer. BUYER understands that BROKER represents other buyers and agrees that it will not constitute a breach of duty for the BUYER'S agent to introduce another prospective buyer to a property in which BUYER may be interested or to assist another buyer with a purchase. BROKER shall maintain confidentiality of material information of each buyer. Should either party file a claim for violation of General Laws Chapter 93A, the prevailing party (including any agent of the BROKER) shall be entitled to recover reasonable attorneys' fees and costs, but no fees and costs shall be recovered in the event that a tender of settlement was made in advance of suit, but rejected, and the court or arbitrator determines that the rejected tender was reasonable in relationship to the injury actually suffered. 4. Buyer's Duties. BUYER agrees to work exclusively with BROKER during the term of this agreement. BUYER agrees to conduct all negotiations with the knowledge and assistance of BROKER. BUYER agrees to cooperate with BROKER by providing relevant personal and financial information and to cooperate in scheduling and attending showings. BUYER agrees to advise BROKER of any interest in purchase or lease of real property about which BUYER was previously advised by any other person. BUYER shall provide any lender's letter of pre-approval or pre-qualification to BROKER within seven (7) days of receipt. BUYER agrees not to attend any open house without advance notice and approval of BROKER and agrees to advise each listing broker at each open house of BUYER'S agency relationship with BROKER. BUYER represents that BUYER is not subject to any earlier agency agreement with any other broker or any protection period. BUYER understands that this agreement does not relieve BUYER of the duty to exercise due diligence for BUYER'S own protection, including the duty to investigate any information of importance to the BUYER. BUYER further understands and agrees that BROKER may show other prospective buyers properties in which BUYER may be interested. 1 © 1999, 2002, 2005, 2008 MASSACHUSETTS ASSOCIATION OF REALTORS® 09.02.05/362280.1 Form No. 714

5. Broker's Compensation. BUYER agrees to pay BROKER: (a) Retainer. BUYER shall pay BROKER a retainer in the amount of $ upon signing this Agreement as compensation for professional counseling, consultation, and research. Such retainer is non-refundable and shall ( ) shall not ( ) be credited against any Success Fee. (b) Success Fee. The parties agree that compensation equal to (insert percent of purchase price or other amount) shall be due BROKER upon successful completion of this Agreement or in the event that, within days following the term of this Agreement, BUYER or any person acting for or with BUYER purchases, leases or otherwise acquires an interest in the real property after becoming aware of the availability of the real property or receiving information about the real property during said term. The parties agree that BROKER shall first seek compensation, if any, offered by the listing agent or otherwise from the transaction (listing broker/seller). If obtained, such amount shall be credited to the amount of the Success Fee. If such fee cannot be obtained in whole or in part from the transaction, BUYER agrees to pay BROKER the Success Fee, due at the time set for closing. (c) All fee disputes, claims or controversies arising out of or related to this Agreement shall, upon demand of either party, be submitted for binding arbitration, to the local association/board of REALTORS® or, in the event the association/board declines to hear the matter, to the American Arbitration Association (AAA) or, upon mutual agreement, to another dispute resolution service. The REALTOR® arbitration proceedings shall be conducted by a panel of three (3) arbitrators according to the then current rules of the association/board of REALTORS® or, if before AAA, by a single arbitrator according to the consumer arbitration rules, or if not applicable, to the commercial arbitration rules of the AAA, and all proceedings will be conducted at a location in Massachusetts chosen by the arbitrator. Reasonable attorneys' fees and costs shall be awarded to the generally prevailing party in the arbitration. 6. Consent To Designated Agency. A designated agent is a real estate licensee who has been appointed by a broker or salesperson to represent a buyer as a "designated buyer's agent" or to represent a seller as a "designated seller's agent." When a buyer or seller consents to designated agency only that designated agent represents the buyer or seller. Any other agents affiliated with BROKER may represent another party to the transaction and by consenting to designated agency the buyer or seller permits those agents to represent another party. Individuals who are designated agents owe fiduciary duties to their respective clients. You are further advised that: (a) the designated buyer's agent will represent the BUYER and will owe the BUYER the duties of loyalty, full disclosure, confidentiality, to account for funds, reasonable care and obedience to lawful instruction; (b) all other licensees affiliated with the appointing BROKER will not represent the BUYER nor will they owe the other duties specified in paragraph (a) to that BUYER, and may potentially represent the seller; and (c) if designated agents affiliated with the same broker represent the seller and buyer in a transaction, the appointing broker shall be a dual agent and neutral as to any conflicting interests of the seller and buyer, but will continue to owe the seller and buyer the duties of confidentiality of material information and to account for funds. By signing this agreement, BUYER consents to designated agency. If designated agency occurs in a transaction, a notice of designated agency will be given. The designated agent(s) for the BUYER is/are: [insert name(s) of agent(s)] In the event that the designated agent appointed to represent BUYER ceases to be associated with the BROKER, BUYER hereby consents to appointment by BROKER of one or more agents associated with the BROKER to represent BUYER. Written notice of that appointment shall be given by BROKER to BUYER in a timely manner. 7. Consent To Dual Agency. The BUYER understands that the designated buyer's agent with whom BUYER is working also represents sellers and that if the BUYER is introduced to a property listed by that agent on behalf of a seller, a "dual agency" will be created. The designated buyer's agent may act as a dual agent who represents both prospective buyer and seller with their informed written consent. A dual agent is authorized to assist the buyer and seller in a transaction, but shall be neutral with regard to any conflicting interest of the buyer and seller. Consequently, a dual agent will not have the ability to satisfy fully the duties of loyalty, full disclosure, reasonable care and obedience to lawful instructions, but shall still owe the duty of confidentiality of material information and the duty to account for funds. BUYER understands that material information received from either client that is confidential may not be disclosed by a dual agent, except: (1) if disclosure is expressly authorized; (2) if such disclosure is required by law; (3) if such disclosure is intended to prevent illegal conduct; or (4) if such disclosure is necessary to prosecute a claim against a person represented or to defend a claim against the broker or salesperson. This duty of confidentiality shall continue after termination of the brokerage relationship. When the

agent with whom the buyer is working is a dual agent, that broker with whom the agent is affiliated is also a dual agent and shall remain neutral as to any conflicting interests of the buyer and Seller. By signing this agreement, BUYER consents to have the designated buyer's agent(s) act as a dual agent. Except as expressly provided, this dual agency shall not extend to other licensees affiliated with BROKER. If dual agency occurs in a transaction, a notice of dual agency will be given. 8. Disclosure Of Identity/Other Brokers/Other Potential Buyers. BROKER is authorized to disclose BUYER'S identity. BROKER is authorized to cooperate with and pay compensation to other brokers in connection with the performance of BROKER'S services. BUYER understands that BROKER may represent other buyers interested in purchasing the same or a similar property. BUYER consents to such representation. 9. Entire Agreement/Governing Law. This Agreement is the entire agreement between the parties. It is binding upon the parties' heirs, successors, and personal representatives. Assignment shall not limit the rights of BROKER. This Agreement shall be governed by the laws of the Commonwealth of Massachusetts. Unless otherwise stated, this Agreement may not be modified, except in writing signed by both parties. 10. Other Provisions.

This document creates binding legal obligations. For legal advice, consult an attorney.

Dated: BUYER or Authorized Representative

BROKER Or Authorized Representative

BUYER or Authorized Representative

CONTRACT TO PURCHASE REAL ESTATE #501

(Page 1 of 2)

(With Contingencies) (Binding Contract. If Legal Advice Is Desired, Consult An Attorney.) From:

BUYER(S):

To:

OWNER OF RECORD (“SELLER”):

Name(s):

__________________________________________

Name(s):

_____________________________________________

Address:

__________________________________________

Address:

_____________________________________________

__________________________________________

_____________________________________________

__________________________________________

_____________________________________________

The BUYER offers to purchase the real property described as _____________________________________________________________ _______________________________________________________ together with all buildings and improvements thereon (the “Premises”) to which I have been introduced by __________________________________________________ upon the following terms and conditions: 1. Purchase Price: The BUYER agrees to pay the sum of $ ______________________________ to the SELLER for the purchase of the Premises (the “Offer”), due as follows: i.

$ ____________________ as a deposit to bind this Offer

□ □

and delivered herewith to the Seller or Seller’s agent or to be delivered forthwith upon receipt of written acceptance

ii.

$ ____________________ as an additional deposit upon executing the Purchase And Sale Agreement;

iii.

Balance by bank’s, cashier’s, treasurer’s or certified check or wire transfer at time for closing.

2. Duration Of Offer. This Offer is valid until __________ a.m./p.m. on ______________________________ by which time a copy of this Offer shall be signed by the SELLER, accepting this Offer and returned to the BUYER, otherwise this Offer shall be deemed rejected and the money tendered herewith shall be returned to the BUYER. Upon written notice to the BUYER or BUYER’S agent of the SELLER’S acceptance, the accepted Offer shall form a binding agreement. Time is of the essence as to each provision. 3. PurchaseAnd SaleAgreement. The SELLER and the BUYER shall, on or before __________ a.m./p.m. on _____________________________ execute the Standard Purchase and Sale Agreement of the MASSACHUSETTS ASSOCIATION OF REALTORS® or substantial equivalent which, when executed, shall become the entire agreement between the parties and this Offer shall have no further force and effect. 4. Closing. The SELLER agrees to deliver a good and sufficient deed conveying good and clear record and marketable title at __________ a.m./p.m. on ______________________________ at the ______________________________ County Registry of Deeds or such other time or place as may be mutually agreed upon by the parties. 5. Escrow. The deposit shall be held by ______________________________, as escrow agent, subject to the terms hereof. Endorsement or negotiation of this deposit by the real estate broker shall not be deemed acceptance of the terms of the Offer. In the event of any disagreement between the parties concerning to whom escrowed funds should be paid, the escrow agent may retain said deposit pending written instructions mutually given by the BUYER and SELLER. The escrow agent shall abide by any Court decision concerning to whom the funds shall be paid and shall not be made a party to a pending lawsuit solely as a result of holding escrowed funds. Should the escrow agent be made a party in violation of this paragraph, the escrow agent shall be dismissed and the party asserting a claim against the escrow agent shall pay the agent’s reasonable attorneys’ fees and costs. 6. Contingencies. It is agreed that the BUYER’S obligations under this Offer and any Purchase and Sale Agreement signed pursuant to this Offer are expressly conditioned upon the following terms and conditions: a. Mortgage. (Delete If Waived) The BUYER’S obligation to purchase is conditioned upon obtaining a written commitment for financing in the amount of $ ______________________________ at prevailing rates, terms and conditions by ________________________________ __________________. The BUYER shall have an obligation to act reasonably diligently to satisfy any condition within the BUYER’S control. If, despite reasonable efforts, the BUYER has been unable to obtain such written commitment the BUYER may terminate this agreement by giving written notice that is received by 5:00 p.m. on the calendar day after the date set forth above. In the event that notice has not been received, this condition is deemed waived. In the event that due notice has been received, the obligations of the parties shall cease and this agreement shall be void; and all monies deposited by the BUYER shall be returned. In no event shall the BUYER be deemed to have used reasonable efforts to obtain financing unless the BUYER has submitted one application by ______________________________ and acted reasonably promptly in providing additional information requested by the mortgage lender.

CONTRACT TO PURCHASE REAL ESTATE #501

(Page 2 of 2)

(With Contingencies)

b. Inspections. (Delete If Waived) The BUYER’S obligations under this agreement are subject to the right to obtain inspection(s) of the Premises or any aspect thereof, including, but not limited to, home, pest, radon, lead paint, energy usage/efficiency, septic/sewer, water quality, and water drainage by consultant(s) regularly in the business of conducting said inspections, of BUYER’S own choosing, and at BUYER’S sole cost by ____________________, 20_____. If the results are not satisfactory to BUYER, in BUYER’S sole discretion, BUYER shall have the right to give written notice received by the SELLER or SELLER’S agent by 5:00 p.m. on the calendar day after the date set forth above, terminating this agreement. Upon receipt of such notice this agreement shall be void and all monies deposited by the BUYER shall be returned. Failure to provide timely notice of termination shall constitute a waiver. In the event that the BUYER does not exercise the right to have such inspection(s) or to so terminate, the SELLER and the listing broker are each released from claims relating to the condition of the Premises that the BUYER or the BUYER’S consultants could reasonably have discovered. 7. Representations/Acknowledgments. The BUYER acknowledges receipt of an agency disclosure, lead paint disclosure (for residences built before 1978) and Home Inspectors Facts For Consumers brochure (prepared by the Office of Consumer Affairs). The BUYER is not relying upon any representation, verbal or written, from any real estate broker or licensee concerning legal use. Any reference to the category (single family, multi-family, residential, commercial) or the use of this property in any advertisement or listing sheet, including the number of units, number of rooms or other classification is not a representation concerning legal use or compliance with zoning by-laws, building code, sanitary code or other public or private restrictions by the broker. The BUYER understands that if this information is important to BUYER, it is the duty of the BUYER to seek advice from an attorney or written confirmation from the municipality. In addition, the BUYER acknowledges that there are no warranties or representations made by the SELLER or any broker on which BUYER relies in making this Offer, except those previously made in writing and the following: (if none, write “NONE”): _______________________________________________________________________________________________________________ _______________________________________________________________________________________________________________ 8. Buyer’s Default. If the BUYER defaults in BUYER’S obligations, all monies tendered as a deposit shall be paid to the SELLER as liquidated damages and this shall be SELLER’S sole remedy. 9. Additional Terms.______________________________________________________________________________________________ _______________________________________________________________________________________________________________ _______________________________________________________________________________________________________________ __________________________________________________ BUYER

Date

__________________________________________________ BUYER

Date

SELLER’S REPLY SELLER(S): (check one and sign below) _____ (a) ACCEPT(S) the Offer as set forth above at __________ a.m./p.m. on this __________ day of ____________________. _____ (b) REJECT(S) the Offer. _____ (c) Reject(s) the Offer and MAKE(S) A COUNTEROFFER on the following terms: _______________________________________________________________________________________________________________ _______________________________________________________________________________________________________________ This Counteroffer shall expire at __________ a.m./p.m. on ______________________________ if not withdrawn earlier. __________________________________________________

__________________________________________________

SELLER, or spouse

SELLER

Date

(IF COUNTEROFFER FROM SELLER) BUYER’S REPLY The BUYER: (check one and sign below): _____ (a) ACCEPT(S) the Counteroffer as set forth above at __________ a.m./p.m. on this __________ day of ____________________. _____ (b) REJECT(S) the Counteroffer. __________________________________________________

__________________________________________________

BUYER

Date

RECEIPT FOR DEPOSIT I hereby acknowledge receipt of a deposit in the amount of $ __________ from the BUYER this __________ day of ___________________ __________________________________________________.

__________________________________________________ Escrow Agent or Authorized Representative

123 Brimbal Avenue Beverly, MA 01915 169 Bay Road Hamilton, MA 01982 127 Eastern Avenue Gloucester, MA 01930 49 Union Street Manchester, MA 01944 1 Merrimac Street, Suite 6 Newburyport, MA 01950 www.ChurchillProp.com (833) 668-4649 info@ChurchillProp.com