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<br />Contract Concerning
<br />
<br />3400 Old Tigertown Rd
<br />Paris, TX 75460
<br />(Address of Property)
<br />
<br />Page 6 of 9
<br />
<br />02-13-06
<br />
<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 Seller's loan
<br />liability; tax statements or certificates; preparation of deed; one-half of escrow fee; and other expenses
<br />payable by Seller under this contract.
<br />(b) Seller shall also pay an amount not to exceed $ to be applied in the following
<br />order: Buyer's Expenses which Buyer is prohibited from paying by FHA, VA, Texas Veterans Housing
<br />Assistance Program or other governmental loan programs, and then to other Buyer's Expenses as
<br />allowed by the lender.
<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; interest on the notes
<br />from date of disbursement to one month prior to dates of first monthly payments; recording fees; copies
<br />of easements and restrictions; mortgagee title policy with endorsements required by lender; loan-related
<br />inspection fees; photos; amortization schedules; one-half of escrow fee; all prepaid items, including
<br />required premiums for flood and hazard insurance, reserve deposits for insurance, ad valorem taxes and
<br />special governmental assessments; final compliance inspection; courier fee; repair inspection;
<br />underwriting fee; wire transfer fee; expenses incident to any loan; and other expenses payable by Buyer
<br />under this contract.
<br />B. Buyer shall pay Private Mortgage Insurance Premium (PMI), VA Loan Funding Fee, or FHA Mortgage Insurance
<br />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 paid by a party, that
<br />party may terminate this contract unless the other party agrees to pay such excess. Buyer may not pay charges
<br />and fees expressly prohibited by FHA, VA, Texas Veterans Housing Assistance Program or other governmental
<br />loan program regulations.
<br />13. PRORATIONS AND ROLLBACK TAXES:
<br />A. PRORATIONS: Taxes for the current year, interest, maintenance fees, assessments, dues and rents will be
<br />prorated through the Closing Date. The tax proration may be calculated taking into consideration any change in
<br />exemptions that will affect the current year's taxes. If taxes for the current year vary from the amount prorated at
<br />closing, the parties shall adjust the prorations when tax statements for the current year are available. If taxes are
<br />not paid at or prior to closing, Buyer shall pay taxes for the current year. Rentals which are unknown at time of
<br />closing will be prorated between Buyer and Seller when they become known.
<br />B. ROLLBACK TAXES: If this sale or Buyer's use of the Property after closing results in the assessment of
<br />additional taxes, penalties or interest (Assessments) for periods prior to closing, the Assessments will be the
<br />obligation of Buyer. If Seller's change in use of the Property prior to closing or denial of a special use valuation
<br />on the Property claimed by Seller results in Assessments for periods prior to closing, the Assessments will be the
<br />obligation of Seller. Obligations imposed by this paragraph will survive closing.
<br />14. CASUALTY LOSS: If any part of the Property is damaged or destroyed by fire or other casualty after the effective
<br />date of this contract, Seller shall restore the Property to its previous condition as soon as reasonably possible, but in
<br />any event by the Closing Date. If Seller fails to do so due to factors beyond Seller's control, Buyer may (a) terminate
<br />this contract and the earnest money will be refunded to Buyer, (b) extend the time for performance up to 15 days
<br />and the Closing Date will be extended as necessary or (c) accept the Property in its damaged condition with an
<br />assignment of insurance proceeds and receive credit from Seller at closing in the amount of the deductible under
<br />the insurance policy. Seller's obligations under this paragraph are independent of any other obligations of Seller
<br />under this contract.
<br />15. DEFAULT: If Buyer fails to comply with this contract, Buyer will be in default, and Seller may (a) enforce specific
<br />performance, seek such other relief as may be provided by law, or both, or (b) terminate this contract and receive
<br />the earnest money as liquidated damages, thereby releasing both parties from this contract. If, due to factors
<br />beyond Seller's control, Seller fails within the time allowed to make any non-casualty repairs or deliver the
<br />Commitment, or survey, if required of Seller, Buyer may (a) extend the time for performance up to 15 days and the
<br />Closing Date will 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 default and Buyer
<br />may (a) enforce specific performance, seek such other relief as may be provided by law, or both, or (b) terminate
<br />this contract and receive the earnest money, thereby releasing both parties from this contract.
<br />16. MEDIATION: It is the policy of the State of Texas to encourage resolution of disputes through alternative dispute
<br />resolution procedures such as )tlediation. Any dispute between Seller and Buyer related to this contract which is not
<br />Initialed for identification by Buyer ~ _ and Seller _ _ TREC NO. 25-5
<br />(T AR-1701) 2-13-06 Page 6 of 9
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