Page 16 - Purchase Contract Guide

SECTION 7 - Remedies

6m Lines 302-304 Seller shall make the Premises available and have all utilities on, including propane, until COE to enable
Buyer to conduct inspections and walk-through(s).

6n Lines 305-309 Seller is to cooperate fully and complete any documentation needed to comply with FIRPTA, a part of the
U.S. Tax code. If the Seller is a foreign person or a non-resident alien of the U.S., a withholding up to 15% of the sales price
may be required. Affected Sellers should seek competent legal or tax counsel.
Neither agent nor escrow may advise.

7a Lines 310-314 If a party fails to comply with the provisions of the Contract, the other party shall deliver a written notice to
the non-complying party specifying the non-compliance (the Cure Notice). If the non-compliance is not cured within three (3)
calendar days after delivery of the notice (the Cure Period) the failure to comply shall become a breach of Contract.
A breach of Contract does not automatically cancel the Contract.

NOTE The cure period may extend the COE.

NOTE The non-complying party may cure the breach or cancel the Contract in accordance with other terms of the
agreement at any time prior to actual cancellation of the Contract under a cure notice and demand to cancel.

7b Lines 315-324 The non-breaching party may cancel the Contract (see lines 372-374). Legal recourse is subject to the
Alternative Dispute Resolution obligations set forth in section 7c and Seller may have the right to Buyer’s earnest deposit as
Seller’s sole recourse. AN UNFULFILLED CONTINGENCY IS NOT A BREACH OF CONTRACT.

NOTE With few exceptions, in order for a breach to have occurred a cure period must expire without a cure or proper
cancellation for another reason and the breach must be verifiable. Sellers and Buyers often disagree on what constitutes a
breach.

7c Lines 325-333 Alternative Dispute Resolution (ADR) is agreed to in the event of a dispute between the parties.
If mediation does not resolve the disputes, the parties agree to binding arbitration and the decision of the arbitrator shall
be final and non-appealable. Parties can opt out of arbitration and go to court.

7e Lines 341-343 The prevailing party in any dispute or claim arising out of or relating to this Contract shall be award their
reasonable attorney fees and costs.

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