New Construction Contract

mortgage commitment and shall cooperate fully with the lending institution. Purchaser shall notify Seller’s
attorney of the name and address of the lending institution to which application was made together with the
amount of the mortgage applied for. In the event that the lending institution declines to make the mortgage
loan applied for, Purchaser shall have five (5) days to notify Seller’s attorney, in writing, of the declination of
mortgage application and upon doing so, this Contract shall be d eemed null and void and any sums deposited
with Seller under the terms of this Contract shall be returned to Purchaser except for such amounts for extras
which were approved by Purchaser and installed by Seller. Should Purchaser fail to so notify Seller of the
declination of the mortgage application within the aforesaid five (5) day period, then, in such event, this
Contract shall be deemed to be an all cash transaction, the Mortgage Contingency shall be of no force and
effect and the parties hereto shall proceed to closing. Notwithstanding anything herein contained to the
contrary, Seller and Purchaser may extend the time in which to obtain a mortgage commitment but only by
the terms of a writing signe d by the parties hereto.
Seller shall have the option, in the event of the declination of the mortgage application by the lending
institution, to grant Purchaser a mortgage for the applied mortgage am ount at the rate of intere st of
( %) per centum per annum for a term of years.
7. TITLE
. Said Premises are sold subject to covenants, easements and restrictions of record and any
easements that must be given to facilitate municipal services and/or public utilities. Seller shall convey such
title as any reputable New York tile insurance company will insure. Seller shall have the option to supply a
New York State title insurance company willing to insure the contemplated transaction, the cost of which shall
be borne by Purchaser in the event that Purchaser’s title company is unwilling to insure the transaction. In
the event that telephone, utility and/or drainage easements are not of record at the time this Contract is
executed, said easements may be given at any time and thereafter recorded, provided, however, that the said
easements do not interfere with the use and enjoyment of the Residence. Purchaser agrees to execute any
and all instruments for the granting and recording of the easements. This provision shall survive the delivery
of the deed. The deed shall contain a metes and bounds or other description satisfactory to the lending
institution or tile insuran ce company.
8. CLOSING COSTS
. In the event that Seller has obtained a building loan mortgage for the construction of the
Residence, the costs incurred in closing the building loan mortgage shall be borne by Purchaser for which
Purchaser shall reimburse Seller, at the closing hereof, to cover all costs and expenses in connection with the
building loan mortgage, recording fees, mortgage tax, interest, title insurance, bank fees, lender attorney fees,
inspection fees, application fees and commitment fees. The reimbursement of these fees shall be paid to
Seller for distribution to the proper parties for payment or to be retained by Seller if Seller had paid same.
The foregoing shall be paid to Seller even if Purchaser does not assume the bu ilding loan mortgage.
Purchaser hereby acknowledges that the disbursements referred to hereinabove do not include any sum or
sums that the lender may require for deposit in escrow account for payment of future taxes, assessments
and/or private mortgage insuran ce.
Seller shall provide to Purchaser a certified survey, without staking, which shall be certified to Purchaser, the
lending institution and the title company. The cost for this survey is $ which sum
shall be paid by Purchaser to Seller at closing.
9. INABILITY TO CONVEY TITLE
. Should Seller, for any reason whatsoever, except for a willful default, be
unable to convey and transfer title to the Premises to the Purchaser in accordance with the terms of this
Contract, Seller’s sole liability shall be limited to the refund of all moneys paid on account of this Contract by
Purchaser, in which event, this Contract shall be null and void and the parties shall have no further liability,
obligation and/or responsibility to the other.
10. SIGNS
. Purchaser, for himself, successors and assigns, does hereby covenant and agree that for a period of
years from the date of closing or until such time as the Seller has conveyed title to all the lots on said
subdivision map, whichever event shall first occur, Purchaser will not place any sign or signs upon any part of
the Premises which advertises or announces that the Premises is for re sale.
11. APPROVALS
. At or prior to closing, Seller shall deliver a Certificate of Occupancy for all the structures on the
Parcel and within weeks after closing, the Boa rd of Fire Underwriters Certificate.
12. SUBORDINATION
. This Contract shall be subject and subordinate to the building loan mortgage recorded
against the Parcel, if any.
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