Typical Sales Contract Used at Lake Chapala

July 6, 2008

CONTRACT TO PURCHASE

 

 

 

Between ,                                 hereafter known as the BUYER, and                           hereafter known as the SELLER

         

Initial payment to be held by                                                         DEPOSITOR

Receipt is acknowledged by ( X  ) wire transfer (  ) check  (   ) cash  in the amount of $          00 USD   (              THOUSAND  USD) as initial payment and as part of the total purchase price of offer to purchase property of SELLER which the SELLER states to be the rightful owner, in which the BUYER agrees to buy and the SELLER agrees to sell.

 

Physical address of property 

Legal description as in appears on deed. ____________________________

DEED NUMBER: , DATE ON DEED:  TAX NUMBER 

REGISTRATION NUMBER:

SELLER/S NAME AS IT APPEARS ON THE DEED: PUBLIC REGISTRY: BOOK       DOCUMENT   SECTION   ____________ 

CONDITIONS AND TERMS:

 

Total Purchase Price:                        $   

Initial Payment of:                               $    

Additional Payment/s                         $   ————–          (—————————————)

Net Amount Due at Closing:            $ (All checks subject to clearing.)

 

NOTE:   It is understood by all parties to this agreement that any and all currency payments referred to herein may be made in Pesos, at the equivalent rate prevailing for the purchase of U. S. Dollars at the time of payment.  Should there be a need for refunds to be made, they will be paid in the same currency and at the same rate as received. It Is understood by both BUYER and SELLER that at no time will there be interest paid on said monies.

 

TIME FOR ACCEPTANCE: If this offer is not executed by signatories on or before   

all initial payments shall be, at the option of BUYER, returned to BUYER and offer withdrawn and this contract will become null and void.  The date of contract (Effective Date) shall be the date when the last one, SELLER or BUYER, has signed offer.

 

CLOSING-POSSESSION: This Contract shall be closed by all parties on or before

unless it is extended in writing, signed by both SELLER and BUYER. SELLER shall deliver possession and occupancy to BUYER at time of closing.  The date of closing may be changed without penalty to either party for up to 10 working days due to problems relating to verification of check clearance or transfer of funds.

 

CLAUSES:

 

FIRST: BUYER has the option of acquiring the herein-described property by Escritura  (Direct Deed) or may establish his rights by a Fideicomiso (Deed of Trust).  This decision may be made at a date prior to “closing”. It is understood and accepted by all parties that the price of the purchase on the BUYERS Direct Deed or Deed in Trust, will be the taxable value of the property as given by the tax office of the jurisdiction where the property is located.  Any other value other than the taxable value must be agreed upon in writing prior to the day of closing by both BUYER and SELLER.

 

SECOND: The payment of the “Impuestos Sobre la Renta” (Capital Gains Tax), at the “closing” is the responsibility of the SELLER.

 

THIRD: BUYER will be responsible for all closing costs, which include local, state and federal transfer taxes, attorney/notary fees, fiscal appraisal, no lien, and no debt certificate, and any other legal expenses incurred by the BUYER.

 

FOURTH:  SELLER agrees to pay maintenance and subdivision fees (if any), utility bills, telephone bills, property taxes, servants’ severance and termination pay in accordance with Mexico’s labor laws up to the date of closing, thereby delivering to BUYER the herein described property “free and clear” of any liens or encumbrances in accordance with the laws of Mexico.  In the event the title of the property shall be proven to have a defect, the SELLER shall have a period of 90 (ninety) days after notification thereof within which to remedy the defects.  Upon SELLERS failure to correct the title defects within the above period, the initial payment shall be returned to the BUYER upon demand, and the penalty as specified in clause sixth shall become effective.  SELLER will pay all bills and will provide all receipts prior to the date of closing.  All prepaid taxes, utilities and assessments will be prorated.  The responsibility of having utilities, telephone, taxing entitles, etc. registered in the BUYER’S name shall be shared jointly by the SELLER and BUYER.

 

FIFTH:  Both the BUYER and SELLER agree that the sales price includes land, construction, and all items on the attached inventory (if applicable) and assumes that the condition, at the time of closing, of all items thereon, as well as the real property, to be as good as that which was existing at the time the contract to purchase was signed.  No further warranties are stated or implied.

 

SIXTH:  If either party defaults in his obligations mentioned in this Contract to Purchase the penalty will be as follows:

BUYER:               BUYERS penalty is the forfeiture of his initial payment and any other funds invested by him in or for the      property described herein.

SELLER: Must return to BUYER his initial payment. SELLER must also pay to BUYER any other funds expended by BUYER toward the purchase of the property described herein, and pay to BUYER ten percent of the purchase price, or the amount equal to the initial payment in the event it is less than 10% (ten percent) of the purchase price, made by BUYER, as stated in this contract. By signing this contract SELLER instructs COLDWELL BANKER / CHAPALA REALTY to return to BUYER his initial payment in the event SELLER is found to be in default according to clause # 8 (eight) of this contract, at which time this contract becomes null and void, thereby releasing all parties hereto.

 

SEVENTH:  This contract contains the entire agreement except for attached rider and inventory and no other conditions and/or agreements implied or otherwise shall be binding upon any of the parties to this Contract to Purchase other than those that are expressly contained here in this document; that by the signing of this document they are bound to the terms and conditions set forth herein.

 

EIGHTH:  All the parties agree that in the event of any disputes that may arise from a default under this contract, as per clause # 6, the broker representing the offended party shall submit such dispute to the arbitration committee of the G.I.L. (Grupo Inmobiliario Del Lago A.C.).  The parties agree to accept the decision of the arbitration committee of G.I.L. as binding and final. By the signatures below all parties agree to hold G.I.L. and it’s members harmless.  All the parties acknowledge that in the event of any other legal differences, that may arise, other than that of a default mentioned above, that settlement shall be in the court of municipality, where the aforementioned property is located. 

 

NINTH:  The SELLER is responsible for delivering the said property with no physical person(s) living on the property or right to farm on the aforementioned property, unless other written provisions for occupancy have been made, by both BUYER and SELLER.

 

TENTH:  BUYER to furnish all closing funds in cashier’s check or wire transfer. At no time will cash, personal or third party checks be accepted. If by wire transfer, funds must be received in the account of the DEPOSITOR no later than 24 hours prior to closing.

 

 

This is a legal document.  If not completely understood, legal advice should be sought before signing.  All parties acknowledge they have read and understand this agreement, understand its contents and that there are no other existing agreements and affirm the same with their signatures below.

 

Executed this      day of                of 2008 in the Municipality of Chapala, Jalisco, Mexico

 

 

BUYER’S Signature______________________________________         Date_____________             Time__________                                                         

 

BUYER’S Signature ______________________________________        Date_____________            Time__________

 

 

SELLER’S Signature______________________________________       Date_____________            Time__________                                                         

 

SELLER’S Signature______________________________________       Date_____________            Time__________

 

 

Witness to Buyer:  ______________________________________             Date__________________________

 

 

Witness to Seller:  ______________________________________             Date__________________________

 

 

 Sales Agent for Buyer: __________________________________         Date_________________________

 

 

Sales Agent for Seller:___________________________________         Date _________________________

 

 

 

Listing Office Broker :  ___________________________________            Date__________________________

 

 

Selling Office Broker: ____________________________________        Date __________________________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Email for more information:
Sid@ChapalaClub.com

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