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<br />Contract Concerning 323 No 7th St., La Porte, TX Page Five 01-06-03
<br />(Address of Property)
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<br />12. SETTLEMENT AND OTHER EXPENSES:
<br />A. The following expenses must be paid at or prior to closing:
<br />(1) Expenses payable by Seller (Seller's Expenses):
<br />(a) Releases of existing liens, including prepayment penalties and recording fees; release of
<br />Seller's loan liability; tax statements or certificates; preparation of deed; one-half of
<br />escrow fee; and other expenses payable by Seller under this contract.
<br />(b) Seller shall also pay an amount not to exceed $ to be applied in the
<br />following order: Buyer's Expenses which Buyer is prohibited from paying by FHA, VA,
<br />Texas Veteran's Housing Assistance Program or other governmental loan programs;
<br />Buyer's prepaid items; other Buyer's expenses.
<br />(2) Expenses payable by Buyer (Buyer's Expenses):
<br />(a) Loan origination, discount, buy-down, and commitment fees (Loan Fees).
<br />(b) Appraisal fees; loan application fees; credit reports; preparation of loan documents;
<br />interest on the notes from date of disbursement to one month prior to dates
<br />of first monthly payments; recording fees; copies of easements and restrictions;
<br />mortgagee title policy with endorsements required by lender; loan-related inspection
<br />fees; photos, amortization schedules, one-half of escrow fee; all prepaid items,
<br />including required premiums for flood and hazard insurance, reserve deposits for
<br />insurance, ad valorem taxes and special governmental assessments; final compliance
<br />inspection; courier fee, repair inspection, underwriting fee and wire transfer, expenses
<br />incident to any loan, and other expenses payable by Buyer under this contract.
<br />B. Buyer shall pay Private Mortgage Insurance Premium (PM I), VA Loan Funding Fee, or FHA
<br />Mortgage Insurance Premium (MIP) as required by the lender.
<br />C. If any expense exceeds an amount expressly stated in this contract for such expense to be
<br />paid by a party, that party may terminate this contract unless the other party agrees to pay
<br />such excess. Buyer may not pay charges and fees expressly prohibited by FHA, VA, Texas
<br />Veteran's Housing Assistance Program or other governmental loan program regulations.
<br />
<br />13. PRORATIONS: Taxes for the current year, interest, maintenance fees, assessments, dues and
<br />rents will be prorated through the Closing Date. If taxes for the current year vary from the
<br />amount prorated at closing, the parties shall adjust the prorations when tax statements for the
<br />current year are available. If taxes are not paid at or prior to closing, Buyer shall pay taxes for
<br />the current year.
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<br />14. CASUAL TV LOSS: If any part of the Property is damaged or destroyed by fire or other casualty
<br />after the effective date of this contract, Seller shall restore the Property to its previous condition
<br />as soon as reasonably possible, but in any event by the Closing Date. If Seller fails to do so
<br />due to factors beyond Seller's control, Buyer may (a) terminate this contract and the earnest
<br />money will be refunded to Buyer (b) extend the time for performance up to 15 days and the
<br />Closing Date will be extended as necessary or (c) accept the Property in its damaged condition
<br />with an assignment of insurance proceeds and receive credit from Seller at closing in the amount
<br />of the deductible under the insurance policy. Seller's obligations under this paragraph are
<br />independent of any obligations of Seller under Paragraph 7.
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<br />15. DEFAULT: If Buyer fails to comply with this contract, Buyer will be in default, and Seller may (a)
<br />enforce speCific performance, seek such other relief as may be provided by law, or both, or (b)
<br />terminate this contract and receive the earnest money as liquidated damages, thereby releasing
<br />both parties from this contract. If, due to factors beyond Seller's control, Seller fails within the
<br />time allowed to make any non-casualty repairs or deliver the Commitment, or survey, if required
<br />of Seller, Buyer may (a) extend the time for performance up to 15 days and the Closing Date will
<br />be extended as necessary or (b) terminate this contract as the sole remedy and receive the
<br />earnest money. If Seller fails to' comply with this contract for any other reason, Seller will be in
<br />default and Buyer may (a) enforce specific performance, seek such other relief as may be
<br />provided by law, or both, or (b) terminate this contract and receive the earnest money, thereby
<br />releasing both parties from this contract.
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<br />16. MEDIATION: It is the policy of the State of Texas to encourage resolution of disputes through
<br />alternative dispute resolution procedures such as mediation. Any dispute between Seller and
<br />Buyer related to this contract which is not resolved through informal discussion Owill Owill not
<br />be submitted to a mutually acceptable mediation service or provider. The parties to the mediation
<br />shall bear the mediation costs equally. This paragraph does not preclude a party from seeking
<br />equitable relief from a court of competent jurisdiction.
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<br />Initialed for identification by Buyer/a) e: ~ and Seller J\..-i- 01A TREC NO. 20-6
<br />~ IJo
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