Christiansted, St. Croix, U.S. Virgin Islands 719-6494
1. OFFER TO PURCHASE CONTRACT 2. LIVING TRUST 3. WILLS 4. AND THE DIFFERENCE BETWEEN CREATING A LIVING TRUST AS OPPOSE TO GOING TO COURT PROBATE
YOU KNOW IT IS BETTER TO BUY THAN RENT! AND, YOU ARE READY TO BUY SOMETHING! WHAT DO YOU DO?
FIRST: YOU TALK TO SOMEONE WHO CAN GET YOU A LOAN. YOU CALL YOUR MORTGAGE COMPANY YOU TALKED TO YOUR MORTGAGE/LOAN COMPANY AND YOU GOT YOURSELF PRE-QUALIFIED FOR A LOAN FROM HERE, YOU KNOW HOW MUCH YOU CAN: AFFORD TO BUY NEXT: 1. YOU FIND YOURSELF YOUR FAVORITE REAL ESTATE AGENT 2. AND 3. YOU ARE READY TO GO!!!!!
The undersigned buyer ("Buyer") hereby OFFERS TO PURCHASE the following described real property, together with any and all improvements located thereon, located in St. Croix, U.S. Virgin Islands, ("Property") namely:
WHY? The law requires that its okay to buy property without putting it in writing; but
If something goes wrong, and you want to enforce your agreement: It must be in writing Must state the property you are buying; and how much; and Must be signed by the person to be charged.
Checklist: 1. Seller:_____________________ 2. Buyer:______________________ 3. Plot No. 4 Estate Sion Hill, St. Croix 4. Offer to buy for $_________________ ________________________________________ Signed:
Over the years, other things are added: 1,How the purchase price should be paid: $ 1,000.00 paid when offer is signed. CASH AT CLOSING
Time to Accept: 2.ACCEPTANCE. by 5:00pm St. Croix time, 6/26/2010 If not accepted by this date, then this Offer shall terminate and the earnest money deposit shall be promptly refunded to Buyer. IF THIS OFFER IS ACCEPTED, IT SHALL BECOME A BINDING CONTRACT FOR THE SALE AND PURCHASE OF THE PROPERTY,
CLOSING means: Exchanging Cash for A Deed to the property WHEN CLOSING SHOULD HAPPEN: CLOSING. The closing shall take place at either the Sellers or Buyers attorneys office, or such other place as is mutually agreed upon by Seller and Buyer, by 5:00pm St. Croix time, _____(Date). SAY: What happens if no deed provided on that date and at that time.
4.EXPENSES. Usually Seller shall pay for attests and certificates, and affixing the transfer tax stamps (2% of Purchase Price) on the deed. Real estate taxes, insurance, utility expenses, association assessments and dues, rent and/or security deposits, taxes
Unless otherwise agreed: Buyer pays for: All expenses of obtaining financing, new surveys, appraisals, inspections, title examinations, title insurance, and the recording fees of the deed
5.TITLE. FREE AND CLEAR TITLE If you are buying for CASH/LOAN/GOOD MONEY You need a title free and clear of any liens created by the person you are buying from. You dont had over your cash until that is clear, or else when you are ready to sell, you will have a problem.
In the alternative, Buyer may elect to close this transaction without any reduction in the Purchase Price, subject to the defect(s) in title and/or encroachments. Upon request by Buyer, Seller shall execute and deliver to Buyer at closing a standard form owner's affidavit in a format reasonably acceptable to Buyer's title insurance company.
6.ENTRY, INSPECTION, COOPERATION, AND INDEMNIFICATION. During the period from the date of this contract through the date of closing, Buyer and Buyer's agents, employees, independent contractors, engineers, surveyors and other representatives (collectively "Agents") shall have the right to enter the Property from time to time for the purpose of inspecting the Property, performing appraisals, testing water samples, making surveys of the Property, inspecting the improvements, fixtures, appliances and any other personal property included in this transaction, and performing any and all other reasonable activities relating to the purchase of the Property.
Buyer and such Agents shall make entry only after providing reasonable notice to Seller and any tenant or other occupant of the Property. Buyer agrees that the entry permitted by this paragraph shall not cause injury or damage to the Property. Buyer indemnifies and holds harmless Seller and Broker(s) against any such injury or damage caused by Buyer or its Agents.
6a.LEAD DISCLOSURE. Many houses and apartments built before 1978 have paint that contains lead (called lead based paint). Lead from paint, chips, and dust can pose serious health hazards of not taken care of properly. Sellers will have to disclose known information on lead-based paint hazards before selling a house. Sales contracts will include a federal form about lead- based paint in the building. Buyers will have up to 10 days to check for lead hazards. For more information contact the National Lead Information Center Clearinghouse at 1-800-424-LEAD. For the hearing impaired, call TTD 1-800-526-5456 (fax: 202-259- 1192, email: EHC@CAIS.COM)
7.COMMISSION. The parties acknowledge that _______________ __________________ is the selling real estate broker and ______________________ Real Estate is the listing real estate broker (collectively "Brokers") who brought about this transaction. Seller shall pay the professional service fee ("Commission") as stipulated in the listing agreement between Seller and the listing Broker at the time of closing, or in the case of any installment sales contract, upon the execution of the installment sales contract.
8.PEST INSPECTION. At or prior to the time of closing, Seller shall provide, at their expense, to Buyer a wood infestation report in a form approved by the Federal National Mortgage Association or the Federal Home loan Mortgage Corporation (or any other form acceptable to Buyer) from a properly licensed pest control company stating that the improvements have been inspected and are free from visible infestation and structural damages caused by termites and other wood destroying organisms, or that if such infestation or structural damage or both exist, it has been corrected. The inspection report shall have been made within thirty (30) days prior to the closing date.
All treatment required shall be paid for by Seller and completed prior to closing, unless otherwise agreed upon in writing by the parties. If any structural repairs or other material which cost more than $500.00 are necessary, Seller shall have the option of (a) completing them, (b) provide for their completion or (c) refusing to complete them. If Seller elects not to complete or provide for the completion of such repairs, then Buyer shall have the option of (a) accepting the Property in its present completion or (b) terminating this contract, in which case the earnest money deposit shall be refunded, and no party shall have any further rights, obligations, or liabilities hereunder.
9.DEFAULT BY BUYER. If Seller accepts this Offer and if the transaction contemplated herein is not closed by reason of Buyer's default or failure or refusal to perform Buyer's obligations hereunder, through no fault of the Seller, then Seller shall have the right to elect either(i) to terminate the Agreement, to have the earnest money deposit paid one-half to Seller and one-half to Broker (but not to exceed Broker's agreed commission) as full liquidated damages and no party shall have any further rights, obligations or liabilities hereunder, or (ii) Seller may pursue an action for specific performance.
10.DEFAULT BY SELLER. If the Seller accepts this Offer and if the transaction contemplated herein is not closed by reason of Seller's default or failure or refusal to perform Seller's obligations hereunder, through no fault of Buyer (except in the case of a title defect or setback encroachment which is covered by Section 5.0 hereof), then Buyer shall have the right to elect either (i) to terminate this Agreement, to receive a refund of the earnest money deposit paid hereunder and no party shall have any further rights, obligations or liabilities hereunder, except that Seller shall also be obligated to immediately pay Broker the Full Commission as set forth in their listing agreement; or (ii) Buyer may pursue an action for specific performance.
11.WARRANTIES. Seller represents and warrants to Buyer that Seller has disclosed to Buyer any hidden defects of which Seller has knowledge and which could not be discovered in the normal course of inspection by a knowledgeable person. Buyer acknowledges that Buyer has inspected the Property, including all improvements, and that prior to executing this Offer, Buyer has been given the right to have others inspect the Property on Buyer's behalf for defects and that this Offer is being made with the full knowledge of the condition of the Property as it exists at the time the Offer is made. If Seller has Provided a written disclosure statement, then such written disclosure statement is attached to this Offer and made a part of this contract.
12.DESTRUCTION OR DAMAGE TO PROPERTY. If prior to closing, any improvements located on the Property are destroyed or damaged by fire or other casualty to the extent that the cost of repair or replacement shall exceed ten percent (10%) of the Purchase Price, then either party shall have the right to terminate this contract by providing written notice to the other party prior to closing, in which event, the earnest money deposit shall be returned to Buyer and no party shall have any further rights, obligations or liabilities hereunder.
If neither party elects to terminate this contract, then Seller shall restore the Property to its condition at the time this Offer was accepted. The closing will be postponed for a reasonable period of time to allow Seller to make such repairs. The risk of loss or damage by fire or other casualty prior to closing shall be on Seller.
13.PERSONAL PROPERTY. The Property is being sold unfurnished except that the following fixtures, appliances, and equipment shall be included in this transaction: all plumbing and electrical systems, including water pumps and swimming pool pump and filters, the hot water heater(s), air conditioning systems, fixed carpeting, built-in kitchen appliances, built-in cabinets, security alarm system, and overhead fan(s). All other personal property (for example, furniture) included in this transaction is described on the attached inventory and is made a part of this contract.
14.GOVERNING LAW. This contract, regardless of where it is signed, shall be deemed to have been made in the United States Virgin Islands and shall be governed by and interpreted in accordance with the laws of the United States Virgin Islands.
15.ASSIGNMENT. Buyer shall not have the right to assign any of Buyer's rights or obligations under this contract without the prior written consent of Seller, which consent shall not be unreasonably withheld.
16.DECLARATION OF AGENCY BY BROKER. Buyer hereby acknowledges that the listing Broker and any selling Broker are the agents of the Seller in this transaction and are to be paid a Commission by Seller. Unless otherwise provided under "Other Conditions" of this contract, the listing Broker and any selling Broker in this transaction have not acted as an agent for the buyer and have not been paid a Commission by the Buyer. The Brokers are not representing the Buyer.
17.BROKER INDEMNIFICATION. Buyer and Seller acknowledge that the Broker in the course of events leading to this contract have advised Buyer and Seller of the need for professional opinions, advise, counsel and other services for the protection of their interests or rights in this matter, including but not limited to: consultation with an attorney prior to the signing of this contract; and professional inspection and evaluation of the Property by an engineer, surveyor or inspector to reveal any defects or deficiencies that may or may not be visually detectable. THE UNDERSIGNED PARTIES HEREBY ACKNOWLEDGE THAT THEY HAVE NOT RECEIVED OR RELIED UPON ANY STATEMENTS OR REPRESENTATIONS MADE BY THE BROKER(S), WHICH ARE NOT EXPRESSLY SET FORTH IN THIS CONTRACT.
Seller and Buyer each hereby agree to indemnify and hold harmless each Broker, and its respective agents and employees from and against any and all claims, damages, suits or causes of actions for damages, and other liabilities that may arise out of or result from this contract, the closing of the purchase and sale contemplated hereunder, the condition of the Property, or otherwise, unless such liability was solely caused by the gross negligence or intentional misconduct of such Broker.
18.DEPOSIT. The selling Broker hereby agrees to hold the earnest money deposit in its trust account and shall apply the earnest money as set forth herein. If there is a dispute between Seller and Buyer over the return or forfeiture of the earnest money deposit held in its trust account, then Broker shall retain the earnest money deposit in its trust account until it has received a written release from the parties consenting to its disposition or until disbursement is ordered by a Court of competent jurisdiction. Broker shall be entitled to recover its expenses incurred in connection with such a dispute out of the earnest money deposit.
19.NOTICES. Whenever under this Offer a provision is made for notice of any kind, it shall be deemed sufficient service thereof if such notice is in writing addressed to the respective party to this Offer at the address shown below: FOR SELLER FOR BUYER:
20.BINDING EFFECT. This contract shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, representatives, successors and assigns. As used herein, words in the singular shall include the plural and the masculine shall include the feminine and neuter genders, as appropriate.
21.MODIFICATION OF THIS AGREEMENT. No extension, change, modification, or amendment to or of this Agreement shall be in force or effect whatsoever, except when in writing and signed by all parties hereto.
22.DUPLICATE COUNTERPARTS AND FACSIMILES. This Agreement may be signed in duplicate counterparts, each of which shall be deemed an original, but all of which, together, shall constitute but one instrument. Facsimile transmitted copies of signatures shall be deemed effective and binding.
23.MISCELLANEOUS. This contract constitutes the entire agreement between the parties hereto and no representations, agreements, inducements, or provisions other than those expressly set forth herein shall be binding. All changes, additions, or deletions to this contract must be in writing and signed by all parties. All notices shall be in writing and hand delivered or sent by express mail or certified mail, return receipt requested, to the other party or its attorney or agent. The notice shall be effective when hand delivered or the date mailed as evidenced by
A. MORTGAGE APPROVAL. This contract is contingent upon the Buyer obtaining a mortgage from a local Virgin Islands lending institution payable for a period of thirty (30) years. If the Buyer is unable to obtain such a mortgage commitment then either party shall have the option of declaring in a notice in writing promptly delivered to other party that this contract is null and void, and all monies paid on account of this contract shall be returned to the Buyer. In such event, within 10 days, Buyer must provide Seller with a written notice from the prospective Lender that the loan application has been rejected. If the Buyer fails to provide Seller with written notice from the Lender, then the Buyer shall be deemed by the parties to be in default of this contract, and Buyers deposit shall be liquidated as specified in section 9 of this Offer. The closing shall be held in accordance with the provisions of section 3 of this Offer. The Buyer agrees to pursue the application for a mortgage in good faith and with diligence and to promptly provide the lender with a fully completed and supplemented mortgage application. Buyer also agrees to keep Broker informed about the progress of Buyers loan.
THIS OFFER TO PURCHASE, WHEN EXECUTED BY ALL PARTIES, BECOMES A BINDING LEGAL CONTRACT AND EACH PARTY HERETO SHOULD READ AND UNDERSTAND THE TERMS AND CONDITIONS CONTAINED HEREIN. BY SIGNING THIS CONTRACT, EACH PARTY SIGNIFIES THAT THEY HAVE DONE SO AND THEY ACKNOWLEDGE RECEIPT OF A COPY OF THIS CONTRACT. Date: ________________ ______________________________ Buyer: Witnesses: _____________________________ Address: Date: ________________ ______________________________ Buyer: Witnesses: _____________________________ Address:
RECEIPT is hereby acknowledged of the payment by check of ________________Dollars (0$,000.00) to the Escrow Account of Walcott Real Estate as stipulated in the above Offer to Purchase Agreement as the earnest money deposit. Selling Broker represents that these funds will be deposited within two (2) banking days of the date the Seller accepts this Offer. Date: ____________________ ____________________________________ Selling Broker:
If I make a living trust, do I still need a will? Yes, you do -- and here's why: A will is an essential back-up device for property that you don't transfer to yourself as trustee. For example, if you acquire property shortly before you die, you may not think to transfer ownership of it to your trust -- which means that it won't pass under the terms of the trust document. But in your will, you can include a clause that names someone to get all of the property that you haven't left to a specific beneficiary. If you don't have a will, any property that isn't transferred by your living trust or other probate-avoidance device (such as joint tenancy) will go to your closest relatives in an order determined by state law. These laws may not distribute property in the way you would have chosen.
Property you transfer into a living trust before your death doesn't go through probate. The successor trustee -- the person you appoint to handle the trust after your death -- simply transfers ownership to the beneficiaries you named in the trust. In many cases, the whole process takes only a few weeks, and there are no lawyer or court fees to pay. When all of the property has been transferred to the beneficiaries, the living trust ceases to exist. How does a living trust avoid probate?